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    • CommentAuthorbelavia
    • CommentTimeApr 8th 2007
     
    My professor said that the exam might include creating a Balance Sheet and an Income Statement from a Cash Flow Statement. We've been taught how to make cash flow statements, but is there any particular strategy to doing it backwards?
    • CommentAuthorcajay
    • CommentTimeApr 8th 2007
     
    Yes. Don't just pick off the the difference in accounts from your cfs and put them in your b/s and i/s. Reconcile every single account. Do a Retained Earnings schedule to double check you net income and dividend amounts.Don't just plug in a number to the R/E account to balance the cfs.
    If you are told that you sustained a 4500 loss from the sale of an asset, you need to deduct the fmv of the asset, and acc. amortization as well from the b/s.
    Non cash transactions such as purchasing land by issuing shares will not show up on the csf, but remember to include them on your b/s and i/s.

    Good Luck



 

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