Cash Flow Preparation

Cheng Ly
FIN 200
Assignment: Cash Flow Preparation
* Complete Problems 27, 28, & vitamin A; 29 on pp. 51-53 of Foundations of Financial Management.

Crosby Corporation
Statement of Cash Flow
For the category Ended December 31, 2008

Cash flows from operating activities
pay income (earnings later on taxes) …………………………………………………………………… $160,000
Adjustments to determine gold flow from operating activities:
Add stern depreciation …………………………………………………………………………………….. $150,000
Increase in accounts receivable ………………………………………………………………………. ($50,000)
Increase in inventory ………………………………………………………………………………………. ($20,000)
Decrease in prepaid expenses …………………………………………………………………………. $20,000
Increase in accounts payable……………………………………………………………………………. $190,000
Decrease in accrued expenses…………………………………………………………………………. ($20,000)
Total adjustments……………………………………………………………………………………………. $270,000
wampum cash flows from operating activities …………………………………………………………. $430,000

Cash flows from investiture activities
Decreased in investments (long-term securities) …………………………………………… ($10,000)
Increase in plant and equipment……………………………………………………………………. ($400,000)
Net cash flows from investing activities…………………………………………………………..



($390,000)

Cash Flows from financial activities
Increase in bonds payable ……………………………………………………………………………….. $50,000
pet stock dividends paid ………………………………………………………………………… (10,000)
Common stock dividends paid …………………………………………………………………………. (50,000)
Net cash flows from financing activities……………………………………………………………. ($10,000)

Net increase (decrease) in cash flows ………………………………………………………………. $30,000

28. Describe the general relationship between clear income and terminal cash flows from the operating activities for the firm.

The relationship between the illuminate income and net cash flows from operating activities for firm is what is left from all the expenses taken and add to come up with the total operating activities. The net income is what the company has started out before...If you want to get a mount essay, order it on our website: Orderessay



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