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STMT OF CASH FLOWS
CASH PAID TOSUPPLIERS
uraccounted4accounting.com
I n t h i s s e c t i o n w e w i l l c o v e r :uraccounted4accounting.com
Cost of goods sold
I n t h i s s e c t i o n w e w i l l c o v e r :
Cost of goods soldAccounts payable
uraccounted4accounting.com
I n t h i s s e c t i o n w e w i l l c o v e r :
Cost of goods soldAccounts payableInventory
uraccounted4accounting.com
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CASH PAID TOSUPPLIERS
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COGS
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Beginning Inventory+ Purchases
- Ending Inventory
C O G S
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DEBIT: InventoryCREDIT: A/P
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CASH PAID TOSUPPLIERS
A/PBalance Sheet
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PURCHASES $1 ,000 ,000
A/P - end of year (100 ,000)
Paid? 900 ,000
PROBABLY NOT
WE NEEDTHE
CHANGEIN A /P
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PURCHASES $1 ,000 ,000
A/P - end of year (100 ,000)
A/P - beginning of year 95 ,000
PAID 995 ,000
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A/P +5,000Purchases
>Payments
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WHAT IFWE START WITH
COGSINSTEAD OFPURCHASES?
PurchasesGo To
Inventoryfacebook.com/uraccounted4accounting/
facebook.com/uraccounted4accounting/
Beginning Inventory $150 ,000
Purchases 1 ,000 ,000
Ending Inventory (300 ,000)
COGS 850 ,000
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COGS $850 ,000
Increase in A/P (5 ,000)
Paid? 845 ,000
NO
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COGS $850 ,000
Increase in Inventory 150 ,000
Increase in A/P (5 ,000)
Paid 995 ,000
Current assets and liabilities affect the operatingsection of the cash flow statement
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THE RULES
Current assets and liabilities affect the operatingsection of the cash flow statement
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THE RULES
Increases in current assets = cash out; decreases= cash in
Current assets and liabilities affect the operatingsection of the cash flow statement
Increases in current assets = cash out; decreases= cash in
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THE RULES
Decreases in current liabilities = cash out;increases = cash in
R e c a p o f w h a t w e c o v e r e d :
$ Received andPaid
uraccounted4accounting.com
R e c a p o f w h a t w e c o v e r e d :
$ Received andPaid
uraccounted4accounting.com
Purchases & COGS
R e c a p o f w h a t w e c o v e r e d :
$ Received andPaidPurchases & COGS
uraccounted4accounting.com
▲ in A/P andInventory
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