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1. • 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?
2. • 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