Youve recently been hired by B2B Consultants to provide financial advisory services to small business managers. B2Bs
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You received his reply today.
From: Owentheaccountant@yahoo.com
To: Helpme@hotmail.com
Cc:
Subject: Excel Help
Hey pal. I like your idea of working smarter, not harder. Too bad it involved me doing the thinking. Anyhow, Ive created a spreadsheet file that contains four worksheets. The first two tabs (labeled BS and IS) are the input sheets where you would enter the numbers from each clients comparative balance sheets and income statement. Your clients are small, so this template allows for only the usual accounts.
Also, Ive assumed that depreciation is the only reason for a change in accumulated depreciation. If your clients business activities differ from these, youll need to contact me for more complex templates. The third worksheet calculates the operating cash flows using the indirect method and the fourth does this calculation using the direct method. Ill attach the screenshots of each of the worksheets so you can create your own. To answer what if questions, all youll need to do is change selected amounts in the balance sheet and income statement.
Required:
Copy the account balances from the worksheets for the balance sheet and income statement into a spreadsheet file. Enter formulas into the balance sheet worksheet to compute the change in each account balance, and then enter the formulas for the statement of cash flows (indirect method only) into a third worksheet. From this third worksheet, report the net cash flow provided by (used in) operatingactivities.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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