Session 9 (Repaired).docx

Direct cash flow from operations only shows the cash

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Direct cash flow from operations only shows the cash received and paid column . Noncash expenses like depreciation and amortization are not shown on the statement. Create Mike’s Direct Cash Flow from Operations + Cash Collected from Customers 573 - Cash Paid for Purchases of Inventory -200 - Cash Paid for Wages -15 - Cash Paid for Rent -84 - Cash Paid for Supplies -24 + Cash Received for Interest 0 - Cash Paid for Interest 0 - Cash Paid for Taxes 0 = Cash Flow from Operations – 250 Cash Flow from Operations is the same with the direct and indirect method! CFO = +250 Purchase Inventory = – 21 Investing Cash flow investing = -12 Financing Issuance notes payable = + 20 Issuance of stocks = +120 Dividends = -3 Cash Flow Financing =+ 137 Change in cash =– 250 + 137 -12 = +375 Beginning Balance = 0 17
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Riffe – ACCT 6201 – Session 9 –Fall 2018 Ending Balance = + 375 18
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  • Fall '09
  • Robbins
  • Balance Sheet, Generally Accepted Accounting Principles

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