Session 2--Cash Flows

Session 2--Cash Flows - Ned Hill 610 TNRB Machu Picchu,...

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Unformatted text preview: Ned Hill 610 TNRB Machu Picchu, Peru Professor Jim Brau Reading quiz opens today and closes Monday on BlackBoard for Chapter 3 Problem of the Week quizzes will close at 5 pm on Fridays (when scheduledsee syllabus) Jonathan Lewis Cody Coombs Help sessions (mostly on Fridays) will be set up starting next week To reach them/me via email: busmgmt301@gmail.com A. He has an evil, demonic streak, B. He is trying to make us regret were not Accounting majors, OR C. Its really important to understand an organizations cash flows! The Statement of Cash Flows breaks cash flows into 3 parts: Operations Financing Investing Simplified Income Statement - 2008 Three Dudes, Inc Revenue $1,400,000 Cost of Services (490,000) Gross Profit $910,000 Operating Expenses (G&A): ($280,000) Earnings before interest and taxes (EBIT) $630,000 Interest charges: ($27,000) Earnings before taxes (EBT) $603,000 Taxes ($271,350) Net Income $331,650 Assets: Liabilities & Owners' Equity: 2008 2007 2008 2007 Cash 32,000 16,000 Accts Pay 32,000 28,000 Accts. Rec. 225,000 200,000 Notes Pay 30,000 30,000 Inventories 27,000 29,000 Other CL 22,000 22,000 Total CA 284,000 245,000 Total CL 84,000 80,000 PP&E 650,000 560,000 L-T debt 280,000 240,000 - Acc Depr. (220,000) (180,000) Total Liab 364,000 320,000 Net PP &E 430,000 380,000 Equity 75,000 75,000 Ret Earn. 275,000 230,000 Total Assets 714,000 625,000 Total equity 350,000 305,000 Total liab+EQ 714,000 625,000 Simplified Balance Sheet Simplified Balance Sheet Three Dudes, Inc. Three Dudes, Inc. Assets: Liabilities & Owners' Equity: 2008 2007 2008 2007 Cash 32,000 16,000 Accts Pay 32,000 28,000 Accts. Rec. 225,000 200,000 Notes Pay 30,000 30,000 Inventories 27,000 29,000 Other CL 22,000 22,000 Total CA 284,000 245,000 Total CL 84,000 80,000 PP&E 650,000 560,000 L-T debt 280,000 240,000 - Acc Depr. (220,000) (180,000) Total Liab 364,000 320,000 Net PP &E 430,000 380,000 Equity 75,000...
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This note was uploaded on 04/05/2012 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

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Session 2--Cash Flows - Ned Hill 610 TNRB Machu Picchu,...

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