ACCT 304 WEEK 3 DB II Cash flow statement & Income

ACCT 304 WEEK 3 DB II Cash flow statement & Income 
The Statement of Cash Flows has historically given students a lot of heartburn, but it really isn't that scary. A cash-flow statement, simply stated, reports the uses (where the cash was spent) and the sources (where the cash came from) of cash during a period. Let's start with a very simplistic set of facts. I run a CPA firm, and I billed my clients $50K during the month of February. To earn that $50K, I incurred $20K of wage expense and another $10K of overhead (rent, utilities, insurance, etc.). So I made $20K profit, right? So I am sitting pretty? Not necessarily. What if I now tell you that $40K of my billings have yet to be collected? And my E&O insurance carrier increased my premium and I had to pre-pay $10K of premiums this month. How does my cash flow differ from my profit? Will these transactions appear on my income statement? My cash-flow statement? 
150 to 200 words

Answer Detail

Get This Answer

Save Time & improve Grades

  • Questions Asked 685054
  • Experts 5361
  • Total Answered 659177

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Our Amazing Features

  • Plagiarism Free Work

    Our experts provide 100 % original and customized work On time Delivery

  • 24*7 Customer Support

    We provide 24*7 online customer supports via online chat or email

  • Cover All Subject

    JQA is one stop solution for all subject’s Assignment. We can provide assignment help for almost all subjects.

  • Best Industry experts

    We have 1000+ PHD and Post Graduate experts.

Refer Just 5 Friends to Earn More than $1000

  • Your Approx Earning

    USD 2350/year

Your Custom Referral Link:

Hire a tutor

Assignment hero

USA

I am an experienced tutor of 7+ years in all math, physics, and Spanish, SAT, and ACT tutoring. I love working with students and seeing them improve on and grasp concepts!

Guru

USA

Need help in Maths and science ? Look no further . contact me so i can help you . i have been a academic tutor for 10 years . Hire me for help in assignments.

Vikas

USA

After 13 years of working with students across the country, we have the experience and knowledge to provide the best possible academic support for your academics.

Rgaurav

India

I have experience teaching AP Calculus AB and BC, Algebra I, Algebra II, Trigonometry, SAT Math Preparation, and Geometry. I have tutored students ranging from 8th grade to college students.

Invite Tutor