FIN 300 Lecture Notes - Lecture 3: Reserve Requirement, Common Base, Cash Flow
Document Summary
Get access
Related Documents
Related Questions
MG770- Financial Reporting, Financial Statement Analysis, andValuation
Homework Assignment
Week # 3
__________________________________________________________________________
Create the statement of cash-flow with indirectmethod
Interpret the result of the statement of cash flow withpercentage
Instruction:
[1] Please use the balance sheet as follows to classify eachactivity (operating, investing, and financing) from the column ofdifferent.
[2] please create a new statement of cash-flow from yourclassification on balance sheet.
[3] The statement of cash flow will be provided to measure thecompanyâs cash flow situation. Also, you need to interpret theresult of your measurement.
Balance sheet | ||||||
SILVERT CORPORATION | ||||||
Balance Sheet | ||||||
December 31 | ||||||
Different | Operating | Investing | Financing | |||
2012 | 2011 | |||||
ASSET | ||||||
Cash | $ 28,000 | $20,000 | $8,000 | |||
Receivable (net) | 70,000 | 62,000 | $8,000 | |||
Other current assets | 90,000 | 73,000 | $17,000 | |||
Long-term investment | 62,000 | 60,000 | $2,000 | |||
Plant and equipment (net) | 510,000 | 470,000 | $40,000 | |||
Total Assets | $760,000 | $685,000 | $75,000 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | $75,000 | $70,000 | $5,000 | |||
Long-term debt | 80,000 | 90,000 | ($10,000) | |||
Common stock | 330,000 | 300,000 | $30,000 | |||
Retained earnings | 275,000 | 225,000 | $50,000 | |||
Total liabilities and stockholdersâ equity | 760,000 | 685,000 | $75,000 | |||
]2] Create the statement of cash-flow by using the indirectmethod. Company has net income as starting point of $80,000.
STATEMENT OF CASH FLOW
Operating Activities | |
Net Income | $ 80,000 |
Cashflow from Operations | |
Investing Activities | |
Cashflow from Investing | |
Financing Activities | |
Cashflow from Financing |