Preparing a Prospective Statement of Cash Flows
Jane and Harvey Wentland have decided to open a retail athletic supply store, Fitness Outfitters Inc. They will stock clothing, shoes, and supplies used in running, swimming, bicycling, weight lifting, and other exercise and athletic activities. During their first year of operations, 2019, they expect the following results. (Subsequent years are expected to be more successful.)
By the end of 2019, Fitness Outfitters needs to have a cash balance of $5,000 and is expected to have the following partial balance sheet:
Assume that all sales will be for cash and that equipment will be acquired for cash.
In the statement that you prepared for Requirement 1, by how much does the prospective cash balance exceed or fall short of the desired cash balance? If a shortfall occurs, where would you suggest that Jane and Harvey seek additional cash?
Concept introduction:
Cash flow statement is also known as statement of cash flows. It shows inflow and outflow of cash and it is divided into three categories- operating, investing and financing activities.
Whether the cash required by the company falls short or exceeds and if falls short, then remedies for the same.
Cash Flow Statement
Cash Flow from operating activities | Amount |
|
Net Cash Provided from Operating Activities | ||
Net cash Used in Investing Activities | ||
Net cash Used in Financing Activities | ||
Net Decrease in Cash |
Corporate Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
Brief Principles of Macroeconomics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
Principles of Economics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals of Financial Management (MindTap Course List)
Foundations of Business (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Financial And Managerial Accounting
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Fundamentals of Information Systems
A Guide to SQL
Principles of Information Systems (MindTap Course List)
Database Systems: Design, Implementation, & Management
Principles of Information Security (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Principles of Geotechnical Engineering (MindTap Course List)
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Management Of Information Security
EBK ELECTRICAL WIRING RESIDENTIAL
Electric Motor Control
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
International Edition---engineering Mechanics: Statics, 4th Edition
Solid Waste Engineering
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)