FA 46 - Statement of Cash Flows Example - Direct Method
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- Опубліковано 18 чер 2024
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Module 11 examines the statement of cash flows. This is one of the most complex topics of an introductory accounting class, we learn to classify cash flows as operating, investing, or financing, and we learn how changes in asset, liability, and equity accounts effect cash flows.
Please, don't stop making Accounting videos. I have learnt so much from you. Thank You!
Such a great explanation and a great Professor!! Thank you so much
I am also taking an accounting course online. These videos are so helpful. I use my textbook for format when handing in assignments, but I use your videos as my course material more often than the textbook.
Really appreciate these lectures, it's so helpful!!
This video is the best explanation of the direct method of the SCF. I use the T account to help me to understand the logiical but your video is more clear. Thank You
Thank you for this lesson. I am a senior in the business and hospitality school at my university, and this is extremely helpful🤑🔋
This video is so helpful! I'm learning cash flows now in my course and I didn't understand why some accounts were being subtracted from cash and other accounts were being added. I just didn't get the logic behind it. Thank you.
Thanks Sir Tony for this elaborate explanation! I'm so glad I finally understood it :)
The Video is so informative, it explained very well the diagram and it also refers to the book which is very helpful. Thank you
Thank you sir for these uploads!
You. Are. Awesome. I don't have a huge mind for numbers and I had to take Accounting I online in college, and this was my first experience with accounting. You helped me get through this semester, from wanting to drop out to my current A. Thank you so much!
the proof at the end helped a lot thank you big man
I am watching this whole playlist, many videos mulitple times. Thank you for making them! However, the ones that scroll all over the place (this one) are really challenging to follow
thanks for sharing your wonderful knowledge
You are a life saver🤩
You are a life savor.
Bless you Tony Bell, I love you
Excellent!
Thank you
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Question about the operating expenses. I thought the proceeds of the sale of a long term asset (equipment) were investing actives. But, the gain/loss of the sale were part of operating activities. Or do I have that wrong?
Cash flow statement is great for seeing what happened with cash in the past, but how do we plan and track cash flow before and during a quarter or year?
If anyone could please point me in the right direction to one of Tony's videos I'd really appreciate it
yer a fckin champ!!!. thank you for your contributions to the field!
But the sale revenue include both immediate cash flow but also sale made on credit, so in direct method sale revenue is just basicallly assume as cash is collected immediately?
Thank you very much for the workbook. It is very interesting. How can check my answers? is there any corrections or answer key?
It's just the videos - follow along with the videos and double check your work!
Let us check our answers and work together
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Just brilliant. So much better than any textbook. I just wanted to ask you a quick question, please. @14:59 shoulder not it be "so, I'm not including it here because this is cash flow from INVESTING activities so this 9,000 does not belong here" rather than "so, I'm not including it here because this is cash flow from OPERATING activities so this 9,000 does not belong here"?
Good for you, you captured the error. I missed it. The correct statement should be "I am not writing it here because it is a cash flow from investing activities."
You're absolutely right - what a strange slip of the tongue by me - good catch!
Hi Tony, great video, just struggling on one aspect. the last 1 minute example of income tax payable and expenses presumes the firm paid $11k for their income tax? As otherwise, the difference between income tax expense $43k and the remaining income tax payable $10 is $33k that was paid.Why is there an assumption that 11k was paid?
Are you still in need of your answer? I know a method that can help you.
@@sizibaemmanuel3611 please share with me the method that can help
The entire tax bill was 44,000. There is an 11,000 balance per balance sheet. The assumption is that 33,000 was paid. The 10k is what’s left after the payment.
No one explained better than you
How to become a member??? I couldn't find any join button...
I confused increase and decrease of Inventory A/R and A/p anyone can help me pleas
why you didnt calculate 135,000 in operating expenses?
Why does a/r decrease cashflow? If an invoice is issued to a customer and Im waiting to get paid that increases a/r but why does that decrease the cashflow? I mean no cash actually left the account by issuing an invoice
By itself, no, but we are considering it with sales. So sales + decrease in AR. We make 100,000 in sales, and AR increases by 10,000. How many dollars of sales did we collect? Well if I collected every dollar I sold, it'd be 100,000, but since AR went up 10,000 - I didn't get that money! So of the 100,000 in sales, I only got 90,000 with 10K still collectible. As AR goes up, the cash we collect from our sales goes down.
Why did intrest expenses comes in operating activitie i.think it is financial activities
I think there are options - but most companies I'm aware of do this in the operating section - see here: www.investopedia.com/investing/what-is-a-cash-flow-statement/
Wouldn't salaries and other expenses be under the same category as the operating expenses?
Received from Customers: Sales + - Accounts receivable
Received from interest: +- Interest revenue
Paid to suppliers: COGS + - Accounts payable + - Inventory
Paid for operating expenses: +- Wages (salaries ) + rent expense (prepaid rent) + Other expenses
The formula depends on what items you have on the statement.
Cash received from customer= Sales + decrease in Account Receivables (- increase in A/R) + Increase in Unearned Revenue (- decrease in UR)
Cash paid for Suppliers = COGS + increase in Inventory (- decrease in Inventory) + decrease in Account Payable (- increase in A/P)
Yes - that definitely works!
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