loader  Loading... Please wait...

Question(s) / Instruction(s):

Transcendent Enterprises LLC

 

Instructions

Go to the balance sheet and calculate the change and the cash flow effect of the comparative balance sheet

You will note some hints in red throughout the document calculate the change in an account by taking the most current amount minus prior year amount, i.e. 12/31/2011 minus 12/31/2010 amount; this is the change

The cash flow effect is based on this change. Hint: For assets, the cash flow effect is the opposite of the change. Hence, if accounts receivable increase by $10,000, the cash flow effect is NEGATIVE $10,000; (explanation: when other assets increase, the assumption is that cash is tied up in these assets)

For liabilities and equity, the cash flow effect is the same as the change; for example, if accounts payable decrease by $5,000, then the cash flow effect is a NEGATIVE $5,000; (explanation; cash is consumed to REDUCE payables)

Put your answers in the yellow boxes.

Save your file as Lastname_FirstName_Assignment3, Example: Pioneer_Jane_Assignment3.xls; Assignment must be saved in excel or PDF formats.

Failure to follow directions can result in a zero.

 

Assumptions

Property and Equipment was disposed by 10,000. No gain or loss was recognized. Hence, the CASH proceeds equaled the net book value of the assets disposed. Hint: the company received $10,000.

No additional borrowings took place. Reductions in Long Term debt resulted entirely from payments on long term debt.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$3.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494