Dog Concierges, LLC: Transaction Analysis and Statement of Cash Flows Preparation

2017 ◽  
pp. 1-9
Author(s):  
Mark E. Haskins
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Balance Sheets ◽  
Income Statement ◽  
Transaction Analysis ◽  
Business Events ◽  
Statement Of Cash Flows

This case is appropriate in a MBA module for the accounting process and is also an excellent exam case. It provides a diagram of the three basic financial statements (balance sheet, income statement, and statement of cash flows) used to capture, codify, and communicate the effects of a series of typical business events. The case also gives students the opportunity to prepare a simple statement of cash flows using two sequential balance sheets and to work backward from a balance sheet and statement of cash flows to craft the beginning of the year's balance sheet.

Horse Vet, LLC: Transaction Analysis and Statement of Cash Flows Preparation (Option 1)

2017 ◽  
pp. 1-12
Author(s):  
Mark E. Haskins
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Statement ◽  
Balance Sheets ◽  
Income Statement ◽  
Transaction Analysis ◽  
Business Events ◽  
Statement Of Cash Flows

This case pertains to the foundational underpinnings of the accounting process and the statement of cash flows. In Part I, students are presented with 23 business events that they must evaluate for recording in the financial records. Part II requires students to prepare a 2012 statement of cash flows using the information presented in the company's 2011 and 2012 year-end balance sheets along with its 2012 income statement. In Part III, students must rely on a 2011 balance sheet and a 2011 statement of cash flows to work backward to derive the 2010 year-end balance sheet. There are two versions of this case: Option 1 and Option 2. The Option 2 case is a bit more challenging than the Option 1 case. Instructors should use Option 2 if they feel students are well grounded in their understanding of financial statement relationships and the customary financial reporting of a typical set of business events. Both cases reinforce students' learning related to the accounting process and the connectivity between the financial statements. Please note that only one version of the case should be used due to the existence of some overlap between the two.

scholarly journals IPTEKS NILAI WAKTU UANG DAN IMPLIKASI PENCATATAN AKUNTANSI

2019 ◽  
Vol 3 (2) ◽  
Author(s):  
Novi Swandari Budiarso
Keyword(s):  
Interest Rate ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Time Value Of Money ◽  
Time Value ◽  
Financial Position ◽  
Income Statement ◽  
Statement Of Cash Flows ◽  
Value Of Money

Most of general public and firms know about money and its value but do not have better understanding how the money creates its own value relates to interest rate. Another side, most of firms still not realize that the time value of money has an impact on accounting recording and its reporting in financial statements, such as statement of financial position (balance sheet), income statement, and statement of cash flows.

scholarly journals The Impact Of The COVID-19 Pandemic On One Of The Biggest Technology Giant Shares: A Financial Analysis On Microsoft Corporation

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Romina Barrantes ◽  
Thomas Leach
Keyword(s):  
Global Economy ◽  
Swot Analysis ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Health Crisis ◽  
Balance Sheets ◽  
Statement Of Cash Flows ◽  
The Impact

Big technology stocks have been on a roll since April 2020, escaping the consequences of the coronavirus outbreak. The coronavirus pandemic created a vast tailwind for technology giants, especially Microsoft by inciting shifts in the corporations’ behavior which are currently outliving the health crisis. The financial analysis on this firm aimed to develop a thorough analysis centered on its corporate history, market summary, financial statements (income statements, balance sheets, cash flows statements), normalized financial statements (normalized income statement, normalized balance sheet, and normalized statement of cash flows), stock valuation, SWOT analysis, and major competitors’ performance. The aim of the evaluation is to get enough information to construct a thorough evaluation concerning the company’s performance and analyze the effects of the coronavirus pandemic on the company. The evaluation indicated this giant technology company is booming during the pandemic even when the global economy is in a recessionary gap. The financial analysis may suggest further research into.

scholarly journals Analisis Penerapan SAK ETAP Pada BUMDes Luhur Sepakat Desa Sido Luhur Kabupaten Bengkulu Utara

2021 ◽  
Vol 1 (1) ◽  
pp. 19
Author(s):  
Zahrah Indah Ferina ◽  
Siti Rozalia ◽  
Merri Anitasari
Keyword(s):  
Comparative Method ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Accounting ◽  
Analysis Method ◽  
Balance Sheets ◽  
Financial Report ◽  
Income Statement ◽  
The Village

The purpose of this study is to examine whether the Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP) in BUMDes Luhur Sepakat financial statements have gone well in accordance with SAK ETAP in which there are balance sheets, income statements, statements of changes in equity, statements of cash flows and records on the financial statements. BUMDes Luhur Sepakat is one of the BUMDes in Padang Jaya District. The initial capital source for the formation of BUMDes comes from the Village Budget (APB desa). To answer the problems regarding the application of financial statements, the data analysis method used in this study is a comparative method by comparing SAK ETAP and BUMDes Luhur Sepakat financial statements. The results of this study showed that the financial report of BUMDes Luhur agreed Sido Luhur Village has not matched the SAK ETAP. Balance sheet and Income statement are made correctly. BUMDes Luhur agreed not to make statements of cash flows, equity changes reports, and records of financial statements. The reporting of financial information continues to be done routinely, and the caretaker BUMDes Luhur agreed already accountable for the financial report with the deliberation to the community at the end of the year.

scholarly journals Cash flow disaggregation and prediction of cash flow

2017 ◽  
Vol 18 (4) ◽  
pp. 464-479 ◽  
Author(s):  
Ehsan Khansalar ◽  
Mohammad Namazi
Keyword(s):  
Cash Flow ◽  
Balance Sheet ◽  
Cash Flows ◽  
Prediction Errors ◽  
Content Type ◽  
Balance Sheets ◽  
Income Statement ◽  
Aggregated Model ◽  
Flow Components ◽  
Future Cash Flows

Purpose The purpose of this paper is to investigate the incremental information content of estimates of cash flow components in predicting future cash flows. Design/methodology/approach The authors examine whether the models incorporating components of operating cash flow from income statements and balance sheets using the direct method are associated with smaller prediction errors than the models incorporating core and non-core cash flow. Findings Using data from US and UK firms and multiple regression analysis, the authors find that around 60 per cent of a current year’s cash flow will persist into the next period’s cash flows, and that income statement and balance sheet variables persist similarly. The explanatory power and predictive ability of disaggregated cash flow models are superior to that of an aggregated model, and further disaggregating previously applied core and non-core cash flows provides incremental information about income statement and balance sheet items that enhances prediction of future cash flows. Disaggregated models and their components produce lower out-of-sample prediction errors than an aggregated model. Research limitations/implications This study improves our appreciation of the behaviour of cash flow components and confirms the need for detailed cash flow information in accordance with the articulation of financial statements. Practical implications The findings are relevant to investors and analysts in predicting future cash flows and to regulators with respect to disclosure requirements and recommendations. Social implications The findings are also relevant to financial statement users interested in better predicting a firm’s future cash flows and thereby, its firm’s value. Originality/value This paper contributes to the existing literature by further disaggregating cash flow items into their underlying items from income statements and balance sheets.

scholarly journals Certain aspects of methodology for accounting of intangible assets

2020 ◽  
pp. 219-233
Author(s):  
Valentyna Yasyshena
Keyword(s):  
Intangible Assets ◽  
Balance Sheet ◽  
Cash Flows ◽  
Investment Activity ◽  
Balance Sheets ◽  
Analysis And Synthesis ◽  
Statement Of Cash Flows ◽  
The Stability ◽  
Double Entry ◽  
The Impact

Introduction. In today’s competitive environment; there is an urgent need to find new approaches to managing an enterprise and its intangible assets in order to ensure the stability and development of domestic enterprises. For effective management of the enterprise; there is a need to conduct research aimed at improving the accounting methodology in accordance with the present requirements and to increase the formation of quality information and accounting support of the management system; etc. Objective. The study is aimed at studying such elements of the accounting method as double-entry; the balance sheet; reporting by disclosing their nature; determining the impact on accounting and the formation of reporting indicators in the IAs and goodwill in accordance with the requirements of the applicable law. Methods. Analysis and synthesis are used to identify the current state of the study of the elements of the accounting method. Scientific abstraction and historical methods have been used to outline the problems investigated by scientists arising in the theoretical and practical area of accounting for IAs. Groupings; tables; graphs are used to classify IAs and goodwill and to establish the interconnection of the accounting method elements; etc. Results. The problems of accounting and reporting of intangible assets through the prism of such elements of accounting method as accounts; double-entry; the balance sheet; reporting are revealed. It is emphasized that the balance sheet as an element of the method should be understood not only as a form of reporting but first and foremost as a model for ordering accounting objects and summarizing information on the facts about the economic activity. Not all intangible assets are reflected in the accounts and respectively in the balance sheets of domestic enterprises. This applies both to recognized intangible assets under PAS 8 and internally generated assets that do not meet the recognition criteria but which increase the value of the enterprise. It is stated that the internal goodwill should be reflected in the financial and management accounting of the enterprise because of its existence during all current activities of the company; and not only at the moment of its realization. Keeping current records of goodwill at the enterprise will reduce the gap between its market and book value to a minimum. The impossibility of simultaneous attribution of intangible assets transactions to two types of activities; which is disclosed in the financial statements; is proved. It is noted in the Statement of Cash Flows that the information on the sale of intangible assets should be recorded as an operating activity. The revision of the definition of «investment activity» was emphasized. Prospects. It is necessary to conduct research in the field of improving the methodology of domestic accounting in general; including intangible assets through the study of approaches to the accounting methodology.

Analyzing Two Investments—An Instructional Case to Introduce Basic Financial Accounting Concepts

2018 ◽  
Vol 33 (4) ◽  
pp. 47-56
Author(s):  
Wendy J. Bailey ◽  
Janet A. Samuels
Keyword(s):  
Financial Reporting ◽  
Business Students ◽  
Balance Sheet ◽  
Cash Flows ◽  
Legal Aspects ◽  
Financial Accounting ◽  
Net Income ◽  
Income Statement ◽  
Orientation Session ◽  
Statement Of Cash Flows

ABSTRACT This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., “boot camp”). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.

Minority Interest in the Consolidated Retained Earnings Statement

2001 ◽  
Vol 15 (2) ◽  
pp. 119-146 ◽  
Author(s):  
Hugo Nurnberg
Keyword(s):  
Cash Flow ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Parent Company ◽  
Consolidated Financial Statements ◽  
Entity Theory ◽  
Income Statement ◽  
Cash Flow Statement ◽  
Retained Earnings

Consolidated financial statements purport to report income, financial position, and cash flows of a parent company and its subsidiaries as if the group were a single company with one or more branches or divisions. Under the parent company theory, the consolidated entity perspective assumed in the consolidated income statement, the consolidated balance sheet, and the consolidated retained earnings statement differs from the consolidated entity perspective assumed in the consolidated cash flow statement. Even under extant expositions of the entity theory, the consolidated entity perspective assumed in the consolidated income statement, the consolidated balance sheet, and the consolidated cash flow statement differs from the consolidated entity perspective assumed in the consolidated retained earnings statement. This paper develops a consistent consolidated entity perspective for all four consolidated financial statements. It demonstrates that under the entity theory, consolidated retained earnings includes the separate equities of both the parent company stockholders and the minority interest. As such, both elements of retained earnings should be reported in the consolidated retained earnings statement to make it comparable to the consolidated retained earnings statement of companies without subsidiaries or with only wholly owned subsidiaries. The effect on certain financial ratios of public companies may be substantial. The paper also demonstrates that for purchased subsidiaries, minority interest in consolidated retained earnings includes unamortized write-ups of identifiable net assets and goodwill arising from purchase-type business combinations.

scholarly journals The rules for the Cash Flow Statement in the International Financial Reporting Standard

2013 ◽  
Vol 7 (1-2) ◽  
pp. 71-73
Author(s):  
Anikó Türkössy
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Cash Flows ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Historical Changes ◽  
Income Statement ◽  
Cash Flow Statement ◽  
Statement Of Cash Flows

Cash flow statement may provide considerable information about what is really happening in a business beyond that contained in either the income statement or the balance sheet. Analyzing this statement should not present an intimidating task; instead it will quickly become obvious that the benefits of understanding the sources and uses of a company’s cash far outweigh the costs of undertaking some very straightforward analyses. The objective of IAS 7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing, and financing activities.

scholarly journals Methodology of cash flows analysis

2021 ◽  
Vol 16 (1) ◽  
pp. 27-47
Author(s):  
Miloš Pavlović ◽  
Čedomir Gligorić ◽  
Jana Cvijić-Rodić
Keyword(s):  
Decision Making ◽  
Balance Sheet ◽  
Accounting Information ◽  
Cash Flows ◽  
Financial Information ◽  
Income Statement ◽  
Report Analysis ◽  
The Subject ◽  
Accounting Period ◽  
Statement Of Cash Flows

Cash flows are one of the main indicators of liquidity and solvency of the company. In practice, the Statement of cash flows is very often done as "following document" to Balance sheet and Income statement. This is wrong. The statement of cash flows can give the information to its users about the ability of the company to make cash. The balance sheet and Income statement, due to their accrual basis, are not saying anything about the cash flows of the accounting period, and that is why the Statement of cash flows is very important. A good analysis of this statement can be the basis and support to the process of decision making both for internal and external users of financial information. In this paper we are presenting the methodology of the Statement of cash flows report analysis. The subject of this paper is the analysis of the Cash Flow Statement. The aim of this paper is to point out the importance of reporting on cash flows and its information capabilities to users of accounting information.

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