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If you could please provide me with the step by steps of each of the below items

Prepare the operating activities section of the statement of cash flows using the direct method.
Hint:  you will determine collections from customers and payments to merchandise suppliers and employees.

Prepare the operating activities section of the statement of cash flows using the indirect method.  Hint:  Net Income is the starting point and you will look at non-cash income statement items and changes in other current assets.

Determine where certain transactions would be reported in the statement of cash flows.  The categories are operating, investing and financing.

Prepare a horizontal analysis of a company’s balance sheet (identify dollar and percentage change from base year).

Prepare a vertical analysis of an income statement for a company.

Prepare a horizontal analysis of a company’s balance sheet (identify dollar and percentage change from base year).

Sol:

see attachment.


Prepare a vertical analysis of an income statement for a company.

Sol:

Income statement information for Sheaf Corporation is provided below:

Sales                                           $359,000
Cost of goods sold                   132,830
Gross profit                                226,170


Sheaf Corporation

                                                      Amount                                                         Precentage
Sales                                           $359,000                                                             100%
Cost of goods sold                   132,830        132830/359100*100                    37%
Gross profit                                226,170        226170/359100*100                    63%

Thank you for your help but I was looking more for a how to.

Step 1- identify....
step 2- add 2012 to 2013....

so one for each of the items

Hi there,

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