Upload
christopher-farrell-cpa
View
34
Download
0
Embed Size (px)
Citation preview
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
https://www.youtube.com/watch?v=dueBXvxvNpk
Click here for the narratedversion of this deck on
Takes less than 6 minutes.
CASH PAID TOSUPPLIERS
facebook.com/uraccounted4accounting/
COGS
facebook.com/uraccounted4accounting/
Beginning Inventory+ Purchases
- Ending Inventory
C O G S
facebook.com/uraccounted4accounting/
DEBIT: InventoryCREDIT: A/P
facebook.com/uraccounted4accounting/
CASH PAID TOSUPPLIERS
A/PBalance Sheet
facebook.com/uraccounted4accounting/
PURCHASES $1 ,000 ,000
A/P - end of year (100 ,000)
Paid? 900 ,000
PROBABLY NOT
WE NEEDTHE
CHANGEIN A /P
facebook.com/uraccounted4accounting/
facebook.com/uraccounted4accounting/
PURCHASES $1 ,000 ,000
A/P - end of year (100 ,000)
A/P - beginning of year 95 ,000
PAID 995 ,000
facebook.com/uraccounted4accounting/
A/P +5,000Purchases
>Payments
facebook.com/uraccounted4accounting/
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
facebook.com/uraccounted4accounting/
COGS $850 ,000
Increase in A/P (5 ,000)
Paid? 845 ,000
NO
facebook.com/uraccounted4accounting/
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
facebook.com/uraccounted4accounting/
THE RULES
Current assets and liabilities affect the operatingsection of the cash flow statement
facebook.com/uraccounted4accounting/
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
facebook.com/uraccounted4accounting/
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
We hope this helps.If you found this presentation useful
pleaseLIKE, SHARE OR COMMENT
VISIT OUR WEBSITEand
OUR FACEBOOK PAGEThanks.