View the step-by-step solution to:

CASH FLOW INDIRECT METHOD Instructions to record the changes in cash flow between periods.

Please refer to attachments.

CASH FLOW INDIRECT METHOD
Instructions to record the changes in cash flow between periods.
Preparing a Cash Flow Statement for Fashion Retailers, Inc using a
standardized format.
Instructions: You will need a small calculator to complete the
assignment.
1) From the information given on the Income Statement prepare entries
for
the changes necessary to reconcile net income with cash flow from
operations.
After entering the adjustments from analyzing the Income Statement,
proceed to make additional reconciling entries for Non-current items and
Changes in Current Assets and Current Liabilities.
Once you have determined Cash Flow from Operations continue on by
determining cash flow from investing.
The final determination is to calculate the cash flow from Financing.
The summation of all changes to cash must end up being the same as the
cash balance 12/31/05 as shown on the Comparative Balance Sheets.
As a final step in preparing the Cash Flow Statement determine if any
Noncash investing and financing transactions need to be reported on the
bottom schedule. If so, describe the noncash items in a manner that
anyone reading the report will understand the future impact on cash
flow.
Requirements:
There are a number of potential adjustments or entries on this
standardized form that may not be needed. Use those pre-determined
descriptions that MOST CLOSELY describe the adjustment or entry needed
to determine cash flow.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question