Cash Flow Statement using Indirect Method: Part 5, Non Cash Expenses (Financial Accounting #69)

[@martabsb1318]

Can't get across how helpful these are! Thanks for your effort!!!!!!!

[@martabsb1318]

Haha certainly did ;)

[@onlycasual1]

These videos are awesome. So clear and to the point. Seems a lot of lecturers can't do that for some reason. Convoluted lectures/slides/books make accounting (and other subjects in the same realm) much more daunting and a pain in the ass to study.

[@assertiveSumith]

Hi Dave, Do you have videos on Direct Method as well??? Because I have an assignment in which it asks me to make Cash Flow Statement in Direct Method.

[@Leo13809]

Awesome job! Thank you!

[@maheshvp1]

Hi there Thanks for the wonderful videos. Appreciate your effort. Your explanation is to the point and accurate. I was wondering why you did not adjust income tax expense? Assuming it was paid using cash, you kind of alluded that it was cash but then you've said the adjustment is limited to only 4 categories. What happened to income tax expense?

[@TheKrystube]

Thanks for the tutorials, but what about bond payable?

[@RH19AFC]

Are the expenses not listed as either a use or a source due to the fact that they aren't on the balance sheet (therefore not an asset or liability)? Thanks

[@BoxerDogs]

Where is the adjustment for Cost of Goods Sold? Doesn't that have to be adjusted since it affects net income?

[@HaddadCH]

What if on the income statement it just lists total operating expenses and nothing like salaries expense or depreciation expense? How would I know whether it's accounted for in A/P?

[@najathaziqah8248]

what to do if there is operating expenses stated in income statement ?

[@alejandrawitherspoon7887]

if the purchase of a new equipment was sold for 7,000 when the accumulated del was 4,000 and the cost of the equipment was 10,000 what is the adjustment for the depreciation for this item?

[@alejandrawitherspoon7887]

***** well, let's see: In my exercise, the Dec31-2012 Acc Dep is 210,000 and the Dec-31-2013 Acc. Dep is 227,000. Do I add the 17,500 increase in the accumulated depreciation? In addition, December 31-2012 Property plant and equipment was 500K and Dec 31-2013 was 550k. Extra info says that new equipment was purchased on dec 31,2013 for 60,000 (40k in cash, 20k with a long-term NP). If this was purchased on Dec 31/2013, do I add it to the current dec 31-2013 balance of Property Plant and Equipment? also, there's information about the sale of the old equipment (sold for 7000, acc dep 4000, book value 10000) The journal entry for the purchase of the equipment would be: Equipment 60,000 Cash 40,000 (I don't need to do any adjusting to this since it's already cash) Long-T NP 20,000 (this needs to be adjusted in the Financing activities) For the sale of the equipment the journal entry would be: Cash 7,000 Acc. Dep. 4,000 Equipment 10,000 Loss on sale of Equipment 1,000 Sorry I have so many questions... I just find this really complicated :/

[@alejandrawitherspoon7887]

***** Will do... thank you sooooo much :D

[@alejandrawitherspoon7887]

***** I've been trying to do my homework but I can't figure it out how to do this.... UGHHHHH... I want to post the question on your website, but it doesn't let me do it!!!!! HELP :(

[@alejandrawitherspoon7887]

***** I just tried to attached the picture. I'm not sure it it actually worked.