1. Discussion Question
under which activity (operating, financing, investing) the following accounts
belong in the statement of cash flows:
for the year______________________
and other payables______________________
of a company______________________
capital (preferred) ______________________
2. Professional Assignment
Copy and complete the following assignment into a new document.
As this assignment is problem-based, no 2-3 page paper or ppts will be
required. However, you should provide a summary that explains sources of
finance, and other accounting principles learned thus far.
Identify, under the appropriate heading, whether the following
changes are an inflow of cash or an outflow of cash. What amounts and
percentages were used by internal and external sources to finance the purchase
of the assets?
(in $)This Year Last Year Cash Inflows Cash Outflows
Trailer 12,000 -- __________________
Furniture 5,600 4,000__________________
Salary in excess of expenses 5,000 --__________________
Mortgage 75,000 60,000__________________
RRSP 23,000 20,000__________________
Loan made to a friend -- 5,000__________________
Car loan 12,000 8,000__________________
Visa 1,250 600__________________
The Bay -- 450__________________
Cash in the bank 3,000 2,000__________________
Marketable securities 12,000 10,000__________________
of a business are contemplating investing $550,000 in non-current assets in early January 2014.
are exploring ways to finance it.
2012, the company had $250,000 in trade receivables, an amount that it expects
will increase to $275,000 in 2013.
inventory level for 2012 was $430,000 and, having introduced a new inventory
management system, the owners expect to be more efficient in managing it.
forecast a level of $370,000 in inventories by the end of 2013.
expect a substantial increase in revenue, which will increase their profit from
$150,000 in 2012 to $230,000 in 2013.
much cash will be generated from internal operations by the end of 2013?
the owners have to borrow money from investors to finance the expansion? If yes,