Tuesday, May 5, 2020

Financial Accounting Analysis

Question: Describe about the Analysis of Statement of Cash flow in Financial Analysis? Answer: Statement of Cash flow for the year ended 30th June 2017 Net Sales $ 750,000.00 Change in Account Recv. Net $ (24,440.00) Less : Bad debt expense $ (14,440.00) Cash collected from sales $ 711,120.00 Cost of Goods sold $ (603,000.00) Change in inventories $ (3,800.00) Change in Accounts Payable $ (2,200.00) Cash Paid to suppliers $ (609,000.00) Cash From Trading Activities $ 108,120.00 General and Administrative expenses $ (113,160.00) Tax expense $ (4,200.00) Change in Accruals $ - Cash From Operating activities $ 225,480.00 Change in other Assets /Liabilities $ - Net cash from Operations $ 225,480.00 Cash flow from investing activities Proceeds from purchase of assets $ (2,400.00) Proceeds from sale of Equipment $ (600.00) Net cash from Investing activities $ (1,800.00) Proceed from issuance of share capital $ 31,000.00 Proceeds from long term borrowing $ - Repayment of long term borrowing $ (3,200.00) Net cash from Financing Activities $ 34,200.00 Net increase in cash and cash equivalents $ 257,880.00 References: Accounting Standard (AS) 3 - Cash Flow Statements. (2015). 1st ed. [ebook] pp.19-35. Available at: https://www.mca.gov.in/Ministry/notification/pdf/AS_3.pdf [Accessed 11 Feb. 2015]. ZIONS BANK - Business Builder 4 How to Prepare a cash flow statement. (2015). 1st ed. [ebook] pp.1-30. Available at: https://www.zionsbank.com/pdfs/biz_resources_book-4.pdf [Accessed 11 Feb. 2015].

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