Problem Imagine XYZ Corp makes 100 widgets at a cost of $100 in year one 50 widgets are sold on credit for $125 in year two and 50 widgets are sold in cash for 110$ The receivable is paid in year three Questions a) Write the formal income statements for each year c) b) Write all the cash flows for each year More specifically, calculate the cash inflows, cash outflows, and the net cash flow (inflows outflows) Show that using Statement of Cash Flow (see the last slide of the accounting review) we can reconcile the results of a) with b) In other words, show that using the Statement of Cash Flows we can start with the income statements in a) and obtain the cash flow statements (as in b) Problem Imagine XYZ Corp makes 100 widgets at a cost of $100 in year one 50 widgets are sold on credit for $125 in year two and 50 widgets are sold in cash for 110$ The receivable is paid in year three Questions a) Write the formal income statements for each year b) Write all the cash flows for each year More specifically, calculate the cash inflows, cash outflows, and the net cash flow (inflows outflows) c) Show that using Statement of Cash Flow (see the last slide of the accounting review) we can reconcile the results of a) with b) In other words, show that using the Statement of Cash Flows we can start with the income statements in a) and obtain the cash flow statements (as in b)

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Problem  Imagine XYZ Corp  makes 100 widgets at a cost of $100 in year one  50 widgets are sold on credit for $125 in year two and 50 widgets are sold in cash for 110$  The receivable is paid in year three  Questions  a) Write the formal income statements for each year c) b) Write all the cash flows for each year  More specifically, calculate the cash inflows, cash outflows, and the net cash flow (inflows outflows) Show that using Statement of Cash Flow (see the last slide of the accounting review) we can reconcile the results of a) with b)  In other words, show that using the Statement of Cash Flows we can start with the income statements in a) and obtain the cash flow statements (as in b) Problem  Imagine XYZ Corp  makes 100 widgets at a cost of $100 in year one  50 widgets are sold on credit for $125 in year two and 50 widgets are sold in cash for 110$  The receivable is paid in year three  Questions  a) Write the formal income statements for each year b) Write all the cash flows for each year  More specifically, calculate the cash inflows, cash outflows, and the net cash flow (inflows outflows) c) Show that using Statement of Cash Flow (see the last slide of the accounting review) we can reconcile the results of a) with b)  In other words, show that using the Statement of Cash Flows we can start with the income statements in a) and obtain the cash flow statements (as in b)

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Problem: Imagine XYZ Corp. makes 100 widgets at a cost of $100 in year one. 50 widgets are sold on credit for $125 in year

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