Indirect Cash Flow Line-by-Line: Accounts Receivable
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- čas přidán 7. 09. 2024
- In this video, we look at how Accounts Receivable should appear on the Statement of Cash Flow. We discuss how to calculate the amount that goes on the statement, which section it should appear in, and how to determine if it would increase cash or decrease cash. For more help with your accounting course check out my website, accountinginfoc...
6 years later and this is still helpful, thank you!
Your welcome! Glad it helped!
@@allkristiningram hi, thanks for this. But my cash flow statement is still not correct.
The 'end of month cash balance' does not match the bank month end balance.
What could be the reason, also its a group consolidated statement.
I don't know what I would do without your videos Kristin! You are the best accounting teacher I have come across!!!!!!!!!!!!!!!!!!!!!
Thank you so much!
i started getting the idea of making cash flow statement thank you teacher
Helped a lot with my homework, thanks!
Awesome! so glad I could help!
Thank you.. you made this so simple.
+Annie K. Mathis you're welcome! Thanks for commenting! I appreciate it.
Hi Kristine, Hope you are doing good. I need help on below.
We have purchased a vehicle from bank at 5% interest annually Cost of Vehicle is 50K. Please advise the General entries and entries at the end of the Year to account for interest expense.
Thanks Alot for your help.
Amount payable in 5 Years.
+M Nauman how is the interest being paid? Monthly? Annually? At the end of the loan?
Monthly
Monthly
+M Nauman how does one calculate the interest? Then ask yourself which accounts you should use.
May i am not able to clarify my question.
When we purchased vehicle cost was 50K and 5% interest was charged for 5 years. So the total amount we are liable to pay to bank would be (50k*5%*5=12500 Interest for 5 years) Plus the principal amount 50k so the total payable is 62,500 in Five years. Correct me if wrong.
Now at which amount we have to record the asset ? 50,000 or 62,500. I am confused here coz 12500 is interest expense that will go to expense.
You always record the asset at cost. The cost of the asset was $50,000. You are correct that the amount paid for interest is interest expense and therefore not added to the cost of the asset.
Got it thanks thanks thanks
Can you share the link of lecture explaining the costing method and process for Manufacturing company. I understand the basic concept but i want details info with example of manufacturing company.