Understanding Cash Inflows and Outflows in Financial Statements

School: St. Clair College - Course: IBM 2010 - Subject: Accounting

ASSIGNMENT #2 1) IDENTIFYINGTHEINFLOWSANDOUTFLOWSOFCASH Use CompuTech's financial statements to identify whether the following changes are cash inflows or cash outflows. In $20142013Cash InflowsCash Outflows Property, plant, and equipment210,000170,00040,000 Trade receivables48,00035,00013,000 Cash and cash equivalents21,00015,0006,000 Long-term borrowings50,00060,00010,000 Short-term borrowings35,00030,0005,000 Total$5,000$69,000 2) PINPOINTINGTHECASHINFLOWSANDCASHOUTFLOWS On Len and Joan Miller's personal statements of financial position shown below, identify whether each account is a cash inflow or a cash outflow. 20142013Cash InflowsCash Outflows Assets House$205,000$136,00069,000 Car22,0006,00016,000 Furniture8,5007,0001,500 RRSPs30,00020,00010,000 Savings bonds5,0004,0001,000 Short-term deposits2,0002,000---- Total assets$272,500$175,000$0$97,500 Equity$ 111,000$ 80,000$31,000 Liabilities Mortgage112,00079,000$33,000 Car loan24,0003,000$21,000 BMO Bank of Montreal21,00011,000$10,000 Amex4,5002,000$2,500 Total liabilities161,50095,000 Total equity and liabilities$272,500$175,000$97,500$97,500

Student Name:Student Number: 3)PREPARINGTHEADJUSTMENTSINNON- CASHWORKINGCAPITAL ACCOUNTSSTATEMENT With the following accounts, drawn from CompuTech's statement of financial position, (1) identify the working capital accounts and (2) prepare the "adjustments in non-cash working capital accounts statement.