Cash is considered to be a component of funds in fund flow statement. You are required...
Cash is considered to be a component of funds in fund flow statement. You are required to discuss how increase in cash is considered as use of funds and decrease in fund are considered as Source of fund?
Homework Answers
In a funds flow statement, an increase in working capital is a use of funds because if working capital is increased, more capital (assets) are invested in the business as compared to the previous period. A decrease in working capital is a source of funds because if working capital is decreased, less capital (assets) are invested in the business as compared to the previous period.
In a funds flow statement, cash forms part of working capital changes. An increase in cash is an increase in working capital, and a decrease in cash is a decrease in working capital.
Hence, in a funds flow statement, increase in cash is considered as use of funds and decrease in fund are considered as Source of fund
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Cash is considered to be a component of funds in fund flow
statement. You are required...
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Chen Company established a $125 petty cash fund on January 1, Year 1. Required a. Is...
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I just need help with the statement of cash flow Required: a. Record the transactions for...
I just need help with the
statement of cash flow
Required: a. Record the transactions for the year in general journal form. b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position. c. Prepare a Statement of Net Position as of June 30, 2020. d. Prepare a Statement of Cash Flows for the year ended June 30, 2020. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see...
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Unit 9 - Statement of Cash Flow As the accountant for Awesome Foods Incorporated, you are...
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