• What is the purpose of a statement of cash flows, and what important information can be gleaned from it?
• What method of presenting cash flows from operations does each company use? How do you know?

AutoSave On deliverable 7 . Last Modified: Wed at 5:36 PM . Search (Alt+Q) Lanna Taylor LT X File Home Insert Page Layout Formulas Data Review View Help Comments Share & Cut v 12 ~ A" A " X _ AutoSum Calibri ap Wrap Text General AY O [A Copy Fill Paste $ ~ % " Insert Delete Format Sort & Find & Analyze Format Painter E Merge & Center Conditional Format as Cell Formatting > Table Styles Clear Filter ~ Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis A1 X fix AAA Inc. and ZZZ Inc. operate in the same manufacturing type industry. The financial statements and notes are below. A B C D E G H K 37 38 39 Statement of Cash Flows (in 000) Year 1 Year 2 Statement of Cash Flows (in 000) Year 1 Year 2 40 Net Income 38,000 $5,400 Net Income 145,000 199,200 41 Add/subtract noncash Expenses/Gains/Losses 14,000 18,000 Add noncash Expenses 12,000 8,000 42 Changes in current assets and liabilities: Changes in current assets and liabilities: 43 Accounts Receivable 20,000 15,000 Accounts Receivable 10,000 12,000 44 Inventory 14,000 14,100 Inventory 5,000 9,000 45 Accounts Payable 5,000 7,000 Accounts Payable 16,000 20,000 46 Accrued Liabilities 7,000 8,000 Accrued Liabilities -6,000 4,000 47 Net Cash Provided by Operations 20,000 29,300 Net Cash Provided by Operations 172,000 186,200 48 Purchase of Equipment 10,000 -38,000 Purchase of Equipment 145,000 160,000 49 Sale of non-current assets 12,00 12,000 Sale of non-current assets 4,000 10,000 50 Net Cash Used by Investing 2,000 -26,000 Net Cash Used by Investing 141,000 150,000 51 Issuance of Bonds -3,000 13,000 Issuance of Bonds 20,000 20,000 52 Payment of Dividend 14,000 14,000 Payment of Dividend 29,000 29,000 53 Net Cash Provided by Financing 17,000 1,000 Net Cash Provided by Financing .9,00 -9,000 54 Net Change in Cash 5,000 2,300 Net Change in Cash 22,000 27,200 55 Add Beginning Cash Balance 12,000 9,700 Add Beginning Cash Balance 33,000 5,800 56 Ending Cash Balance 17,000 12,000 Ending Cash Balance 55,000 33,000 57 58 Notes: Notes: 59 Inventory: Inventory: 60 The cost of inventory is determined using LIFO The cost of the inventory is determined using FIFO. The company's principle market in in the United States. The company's principle market is in the United States. It manufactures and sells some Revenue Recognition: items in Canada. Revenue is recognized when the product is delivered to the customer. Revenue Recognition: Fixed Assets: Revenue is recorded when the customer takes possession of the product. For financial reporting purposes an accelerated depreciation is used for property, plant and Fixed Assets: equipment. Older equipment is sold and existing equipment is updated to increase capacity and For financial reporting purposes straight line depreciation is used for property, plant and Iuseful life. equipment. Used equipment is sold and new state of the art equipment is purchased for a AAA Inc and ZZZ Inc Financials Tab 2 ratios | Tab 3 Income Statement + D Ready X Accessibility: Investigate + 89% Type here to search O w 65OF Sunny 6:14 PM 4/26/2022