Homework chapter 16

Gave a quiz tonight. I'm sure some of you are thinking "I can't believe this class is so easy". Not to fear, some challenging stuff is ahead. Although it still just seems to me like we are hanging out, having fun, talking about accounting. Some of you asked if my wife knows how dorky I am. Yes my friends, she is well acquainted with my inner (and sometimes outer) geeky tendencies.

Finished homework for statement of cash flows. We are onto chapter 17. Should be a good chapter to bring the project all together.

Everyone should be figuring out what company you are going to do the project on. This would include finding the shareholders annual handout etc. Usually you can download this from the web. They are usually a hundred pages or so. Pass it by me if you have any questions on whether your company would be good or not.

Hope doing the homework in class is still useful. I could sense boredom from some of you, relief that it all came together for others, and anxiety for a select few. Here is a summary of the steps to doing a statement of cash flow:

1. Complete P and L and BS first
2. Enter in Net income at the top of the sheet
3. I usually put in beginning and ending balance in so I know what I'm reconciling to
4. Fill out operating activities section (steps 5 through 8)
5. Add back in Depreciation
6. Add or subtract gains or losses on selling assets
7. Add or subtract the net change on all current assets (increase in balance, decreases cash flow or vice versa. Think opposite thumbs.)
8. Add or subtract current liabilities (increase in balance increases cash flow. Thumbs go in the same direction).
9. Fill out investing activities section (step 10)
10. Add or subtract increases in long term assets (Opposite thumbs)
11. Fill out financing activites section (steps 12 through
12. Add or subtract long term liabilities section (same thumb direction)
13. Add or subtract capital section ( Add issuing of stock, subtract dividend)
14. Make sure your ending balances are equal. Find your mistakes.

Only 14 steps. Sounds simple.

Lost my goggles this weekend. I'm sure someone snagged them. Have any good deals on goggles Ashely?

Homework:

Read chapter 17.

Pre homework for next Thursday for you ambitious types:


•E17-20
•P17-24A
•P17-25A
•P17-26A