Question

In: Finance

I need to create a cash flow statement for 4 quarters. It is a new business...

I need to create a cash flow statement for 4 quarters. It is a new business and my professor provided me with very little information. I basically have to create a cash flow statement from scratch with made up information.

Solutions

Expert Solution

To create a cash flow with information one needs to do the following -

A.cash flows are generally consisting of three kind of activities which would be possibly investing activities and financing activities along with operating activities.

B. One needs to find each of the the informations separately and allocate it within the specified heads.

C. Then one needs to find out the the overall summed up figure in order to find out the overall cash flow from the business

D.one also needs to keep in mind that depreciation is not part of the cash flows because it's not operating activities.

E.one needs to re adjust the taxation also in order to find out the adequate cash flows and one also needs to adjust any changes in the working capital.

so it will always be specified according to information available and they should be allocated in different heads in order to arrive at net cash flows from business


Related Solutions

Create the statement of cash-flow with indirect method Interpret the result of the statement of cash...
Create the statement of cash-flow with indirect method Interpret the result of the statement of cash flow with percentage Instruction: [1] Please use the balance sheet as follows to classify each activity (operating, investing, and financing) from the column of different. [2] please create a new statement of cash-flow from your classification on balance sheet. [3] The statement of cash flow will be provided to measure the company’s cash flow situation. Also, you need to interpret the result of your...
Create a Free Cash Flow and Discounted Cash Flow Statement. The tax rate and discount rate...
Create a Free Cash Flow and Discounted Cash Flow Statement. The tax rate and discount rate are not given, so the percentage below is an assumption. If there are better assumptions, then feel free to use that with a description as to why it is better. The EBIT is from the company that is trying to bought; their stand alone basis projected income statement and balance sheet. Show all calculations.   Would you say the merger is a good idea? 2015...
I would need a cash flow statement ONLY for the period ending December 31 2012 PLEASE!...
I would need a cash flow statement ONLY for the period ending December 31 2012 PLEASE! Thanks Income Statements $MM 2009 2010 2011 2012 2013 Revenue Cost of goods sold Gross profit 404 (188) 216 364 (174) 190 425 (206) 219 511 (247) 264 604 (293) 310 Sales Sales Administrations Depreciation EBIT (67) (61) (27) 61 (66) (59) (27) 38    (83) (59) (34) 42 (102) (66) (38) 58 (121) (79) (39) 71 Interest expenses Pre tax income Income tax...
I would need a cash flow statement ONLY for the period ending December 31 2013 PLEASE!...
I would need a cash flow statement ONLY for the period ending December 31 2013 PLEASE! thanks Income Statements $MM 2009 2010 2011 2012 2013 Revenue Cost of goods sold Gross profit 404 (188) 216 364 (174) 190 425 (206) 219 511 (247) 264 604 (293) 310 Sales Sales Administrations Depreciation EBIT (67) (61) (27) 61 (66) (59) (27) 38    (83) (59) (34) 42 (102) (66) (38) 58 (121) (79) (39) 71 Interest expenses Pre tax income Income tax...
I would need a cash flow statement ONLY for the period ending December 31 2011 PLEASE!...
I would need a cash flow statement ONLY for the period ending December 31 2011 PLEASE! And how many CF statements can I do with the below information? Thank you Income Statements $MM 2009 2010 2011 2012 2013 Revenue Cost of goods sold Gross profit 404 (188) 216 364 (174) 190 425 (206) 219 511 (247) 264 604 (293) 310 Sales Sales Administrations Depreciation EBIT (67) (61) (27) 61 (66) (59) (27) 38    (83) (59) (34) 42 (102) (66)...
I would need a cash flow statement ONLY for the period ending December 31 2010 PLEASE!...
I would need a cash flow statement ONLY for the period ending December 31 2010 PLEASE! Income Statements $MM 2009 2010 2011 2012 2013 Revenue Cost of goods sold Gross profit 404 (188) 216 364 (174) 190 425 (206) 219 511 (247) 264 604 (293) 310 Sales Administrations Depreciation EBIT (67) (61) (27) 61 (66) (59) (27) 38    (83) (59) (34) 42 (102) (66) (38) 58 (121) (79) (39) 71 Interest expenses Pre tax income Income tax Net income...
Based on the information below create an income statement, balance sheet, and cash flow statement. On...
Based on the information below create an income statement, balance sheet, and cash flow statement. On January 2, 2003, Alexander, together with a number of relatives and friends, established Chemalite, Inc.; 500,000 shares were issued, of which Alexander received 125,000 in exchange for his patent, and the remainder were sold to the other investors at $1 per share. During the period January 2, 2003, through June 30, 2003, Chemalite, Inc., made the following expenditures: January 15—Paid $7,500 in legal fees,...
I need to create a multi step income statement and statement of retained earnings with the...
I need to create a multi step income statement and statement of retained earnings with the following information ( assume a 30% tax rate and 500,000 shares of common stock) Accounts Receivable                       $555,000 Accumulated Depr.-equipment          450,000 Accumulated Depr.-buildings            360,000 Allowance for doubtful accts.              36,000 Common Stock                           2,000,000 Depreciation Expense (equipment)      50,000 Depreciation Expense (buildings)         60,000 Dividends (common stock)               120,000 Dividends Payable                            30,000 Insurance Expense                             35,000 Interest Expense                               40,000 Interest Payable                          ...
I need to create a multi step income statement and statement of retained earnings with the...
I need to create a multi step income statement and statement of retained earnings with the following information ( assume a 30% tax rate and 500,000 shares of common stock) Accounts Receivable                       $555,000 Accumulated Depr.-equipment          450,000 Accumulated Depr.-buildings            360,000 Allowance for doubtful accts.              36,000 Common Stock                           2,000,000 Depreciation Expense (equipment)      50,000 Depreciation Expense (buildings)         60,000 Dividends (common stock)               120,000 Dividends Payable                            30,000 Insurance Expense                             35,000 Interest Expense                               40,000 Interest Payable                          ...
A cash flow statement is considered a major financial statement for a business and nonprofit entity....
A cash flow statement is considered a major financial statement for a business and nonprofit entity. After studying resources, discuss the main purposes of a cash flow statement and how an entity uses the cash flow statement. Next, discuss the major sections of a cash flow statement and identify which types of transactions are contained in each section.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT