![]() So this helps us if we use this little format, where we’re just saying that increase is going to be bracketed, that means negative for this statement, decreases non bracketed meaning it’s going to be positive. And so we’re not really concerned really even with accounts receivable, we’re concerned with the thing that accounts receivable is related to that thing is actually revenue sales, the income statement side the activity side of things. The problem is we don’t know what to do with a decrease necessarily over here on the cash flow statement, because this is a decrease to accounts receivable, but we’re really trying to back into what’s happening with cash, what’s happening to cash. At the end of the day, we’re gonna have to say whether it’s an increase or decrease now we can see here from our worksheet that we went from 80,007 50 to 77 100. So first of all, we can name it something like this we can say increase, decrease in accounts receivable in kind of like our worksheet. And that’s a little bit confusing, we can memorize what to do as just like a just to just to memorize what assets do and what liabilities do.Īnd then we should probably work it out a few times to theoretically make it make sense because that helps us to understand you know, the accrual basis, cash flow basis and it all so it’s a useful project to do. Now there’s a couple different ways that you can Think through these, you know, what are we going to do with these? The main problem is, we know what the changes but what do we do over here? What do we do in terms of increases or decreases to our cash flow statement. So it’s listing what’s happening here changes in current assets and current liabilities. Now we’re back up to accounts receivable. So now we can kind of go through here and we’re kind of going line by line. And then we’re going to move down to the changes in current assets and liabilities. And then we went to the activities, the decrease in or the depreciation and pull that out. So we started with net income in the operating activities, which is really the change in retained earnings. But what we’re doing here is probably what most people do, we’re kind of starting with the operating activities, then moving to the investing and financing. Now note here that we could, we’re not going line by line like you might think we could go line by line as and go straight down this thing and try to fill out exactly where we want to put these within the statement of cash flows. Now we’re going to look at the changes in current assets and current liabilities. And the change in the accumulated depreciation. We’ve already taken a look at the change in the retained earnings. ![]() The major thing we’re looking for is right here. We will get to this change in cash the bottom line here 61,900. Once we find a home for all other changes. And this is really the column that we are focusing in on we’re trying to get to this change in cash by finding a home for all other changes. So we have all of our balances here for the current period, the prior period and the change, we have put in this change. ![]() So our worksheet that we can pay that we made from the comparative balance sheet, current period, prior period change. The information will be a comparative balance sheet, the income statement and some added information we will be focusing in on a worksheet that was composed from the comparative balance sheet. In this presentation, we will continue putting together the statement of cash flows using the indirect method focusing here on the change in accounts receivable.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |