module exercise 6 - Investment land building securities...

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A. Cash basis net income = cash received during the year – cash paid during the year. Cash income = sales – account receivable Accrued items and recorded depreciation are not the cash receivable or cash paid. B. Calculating the cash flow from operating activities using the indirect method: Net income + Non-cash expenses +Decreases in current assets – increases in current assets + increases in current liabilities – Decreases in current liabilities = change in cash due to operating activities. Investment and note payable are not included in operating activities.
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C. Calculating the cash flow in investing activities Change in cash flow in investing activities = decrease non-current assets – increase non- current assets + decrease investment – increase investment
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Unformatted text preview: Investment, land, building, securities, property, plant and equipment, fixed assets are included in investing activities. D. Financing activities Note payable+ bond payable+ common stock – dividends= Module 2 A. Issuing common stock B. Preferred stock C. Treasury stock Module 3 A. Retained earnings = beginning retained earnings + revenues – expenses – dividends B. Issuing Par common stock C. Cash dividends 2. has preferred stock(if first year, no dividends, the second year should double the dividends. Preferred stock at par value) 3. how to calculate the dividends for per common stock (Total dividends – preferred stock ) / common stock share number D. Stock split 1. Stock split 2. Issue the stock for the dividends...
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This note was uploaded on 04/11/2011 for the course FIN 504 taught by Professor Joe during the Fall '10 term at Keller Graduate School of Management.

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module exercise 6 - Investment land building securities...

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