As a lender, discuss whether you would be satisfied with the current method of classifying cash flows into only three categories. In addition, discuss the normal treatment of interest expense within the statement of cash flows relative to the treatment of dividends and whether you think there are any problems with this.
Answer to relevant QuestionsFrom the perspective of a bank loan officer, discuss why the statement of cash flows may or may not be more important than the statement of income when you are analyzing a company that is applying for a loan. The operating activities section of Johann Manufacturing Ltd.’s statement of cash flows is shown below. In answering the questions after the statement, assume that the net cash flows from Johann’s investing and financing ...Kayla Martchenko has just received a small inheritance from her grandparents’ estate. She would like to invest the money and is currently reviewing several opportunities. A friend has given her the financial statements of ...Describe and compare the allowance method and the direct write off method for determining bad debts expense. Identify three of the common principles of internal control discussed in the chapter. Using your campus bookstore as an example, give one example of how it applies each of the three principles you have identified.
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