Retained earnings - MAXIDRIVE CORP. Statement of Cash Flows...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Retained earnings, December 31, 20A $9,105 The retained earnings statement indicates the relationship of the income statement to the balance sheet. Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividends Example: given the information for I-Med, and assuming a beginning R/E if $15,000, the balance in retained earnings at year-end would be: Statement of Cash Flows (required as of 1988): reports inflows and outflows of cash by category. Operating activities: cash flows directly related to earning income (normal business activity). Investing activities: cash flows related to the acquisition or sale of productive assets used by the company. Financing activities: cash flows directly related to the financing of the enterprise. Change in cash = Cash flows from operating activities + Cash flow from investing activities + Cash flow from financing activities The change in cash is generally not the same as net income. 13
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: MAXIDRIVE CORP. Statement of Cash Flows For the Year Ended December 31, 20A (in thousands of dollars) Cash flows from operating activities Cash collected from customers $33,563 Cash paid to suppliers and employees (30,854) Cash paid for interest (450) Cash paid for taxes (1,190) Net cash flow from operating activities $1,069 Cash flow from investing activities Cash paid to purchase manufacturing equipment $(1,625) Net cash flow from investing activities $(1,625) Cash flows from financing activities Cash received from bank loan $1,400 Cash paid for dividends (1,000) Net cash flows from financing activities $400 Net decrease in cash during the year $(156) Cash at beginning of year 5,051 Cash at end of year $4,895 Notes to Financial Statement 3 types Describe accounting rules applied Present additional detail about items in the statements Provide additional information not in the statements 14...
View Full Document

This note was uploaded on 01/31/2011 for the course ACCOUNTING 301 taught by Professor Chen during the Spring '10 term at George Mason.

Page1 / 2

Retained earnings - MAXIDRIVE CORP. Statement of Cash Flows...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online