Cash Flow Statements Tax Calculations And Balance Sheet

1. The first step to evaluating the cash flows is to conduct the depreciation tax flow analysis. Depreciation is not a cash flow, but the depreciation expense lows the taxes payable for the company. As a result, the tax effect of deprecation needs to be calculated as a cash flow. There are two depreciable items on the company's balance sheet the building and the equipment. The equipment is known to have a seven year depreciable life, which will be assumed to be straight line. The building is also assumed to be subject to straight line depreciation, this time of forty years. The tax saving reflects the depreciation expense multiplied by the tax rate, which in this case is assumed to be 28%. The following table illustrates the tax effect in future dollars of the depreciation expense:

Assignment - AFF2491 Company Reporting Semester 1 2013 This assessment task is designed to test a student’s achievement of objectives 1, 2, 3 and 4 (refer to AFF2491 Unit Guide). It is an individual assessment task. This assignment must be handed in for successful completion of this unit. It will contribute 15% towards the final mark in this unit. The assignment consists of: Part B (7 Marks) Accounting for income tax Part C (8 Marks) Consolidation This assignment is due on Friday 10 May 2013 by 5:00pm (Week 9). Students are required to submit a hard copy in the assignment box located at Level 3, Building H, Caulfield Campus.

DQ 1:   What are the differences between the direct and indirect presentation of cash flows?  What are the advantages and disadvantages of the direct and indirect methods and which does the Financial Accounting Standards Board (FASB) favor and why?

Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows?

I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal.

On July 1, 1973, Congress chose to end the draft in favor of an All Volunteer Army. According to "The Professional Bulletin of Army History, No. 27," the last man was drafted in December 1972 and reported for training in June 1973. Now, not only might the renewed military draft come back but also the age of compulsory service in the meat grinder might be extended from its former limit of 26 years up to 42 years of age.

The cash flow statement consists of three parts: cash flows provided by operating activities of $13,831, cash flows provided by investing activities, and cash flows provided by financing activities effect of exchange rate changes on cash and cash equivalents of ($204)

The statement of cash flows is a relatively new statement. Focused on cash-basis accounting rather than accrual-basis, the purpose of this statement is to describe the effects of a company’s cash inflows and outflows. This paper will discuss the current standards for the statement of cash flows, the history of the statement, and if the direct method or indirect method is more advantageous for the users.

a. You need to be consistent in the treatment of the timing of the cash flows in your analysis. To accomplish this, you should assume that all cash flows occur at the end of the year closest to the actual date of the cash flow, so for example if the case states that a cash flow occur in “January” or “early” in a specific year, you should assume that it occurs on Dec-31 of the previous year. This is what makes most sense from a financial perspective, as the Present Value of a cash flow will be almost exactly the same whether it occurred on Dec-31 in one particular year, or Jan-1 the following year, as those two dates are just one day apart. (When there is no mentioning in the case of when within a certain year a cash flow occurs, assume that it occurs at the end of the year.)

In this analysis I have used the balance sheet, the income statement and the statement of cash flows given in the financial statements for the year ended 2006, 2007 and 2008.

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?

9) Finding operating and free cash flows consider the balance sheets and selected data from the income statement of Keith Corporation.

In this paper we will discuss Walmart’s Balance sheet and Income Statement. We will analyze the company’s total assets at the end of the most recent annual reporting year and to why it is important. We then will talk about the company’s total assets, how much cash and cash equivalents did the company have, as well as, the amount of accounts payable at the most recent year, and from the previous year. What the company’s net revenues are from the last three annual reporting periods, the change in dollars in the company’s net income from the most recent annual reporting period to the previous annual reporting period. We will

class he had missed had been devoted to a lecture and discussion of the statement of cash flows, and