Notes 16

Notes 16 - • To cash statement o Inflow of $55,000 o...

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Statement of Cash Flows How do you set it up if you have additional pieces of information (footnotes)? o Start by labeling O,I,F o Do operating as normal o Make changes to I/S Add back depreciation Subtract out gains Equity method o Now consider additional information: Building w/ costs of $100,000, A/D of $50,000, and sold for $55,000 Implied gain of $5,000 Do T-account for PPE to get plug cash outflow of $150,000 Do T-account for A/D, no plug needed in this case
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Unformatted text preview: • To cash statement: o Inflow of $55,000 o Outflow of $150,000 Land was… • Do T-account for land to get cash outflow of $15,000 Issue stock… • Do T-account for C/S • Do T-account for APIC Pay off $20,000 toward long-term debt: • Do T-account for long-term debt to get plug cash inflow of $40,000 • To calculate change in RE: o Do T-account for RE o If beg. RE + NI does not equal end RE then plug in the dividend...
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Notes 16 - • To cash statement o Inflow of $55,000 o...

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