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SusanCrosson <—–can walk on water….fyi
This is the indirect method since we are starting with net income.
@johntwood69 this is the direct method. My professor is teaching us the indirect method because it is the method GAAP prefers but most companies use direct
@750dmc I wish i new about these videos before cramming time lol :p
Is this indirect or direct method?
you r angel.ur teaching is amazing.thanx for ur all videos.
You’re amazing Thank You
gains or losses are recorded in operating and proceeds from the sale are recorded in investing
The funniest thing is the gay that is behind the camera breathing makes that much effort to push play . What is your main motivation to do this videos??? the rating may change in other videos .
I turn to you when cramming time comes! Thanks for all your help!
gains and losses are to be added back to net income – it’s ok. But as to income tax – what about deffered tax assets and liabilities? You should take account of this as well.
Neither cash generated from operations is separetely presented. This doesn’t result in a mistake but it is a simplified form of Cash Flow Statement
uhm, gains or loses on sales of PPE and/or investment acivitities is recorded in Investing, not operating activities
really helpful!
i love this woman! this is so helpful esp. with finals coming up
she said if the inventories decrease means compare to prior year you have less inventory in current year which means you sold more inventories that will increase your cash
Talk about saving my bacon! Very informative. Thank you so much for posting this.
very helpful
If inventory is sold on credit then it will show a decrease, but not an increase in cash. I don’t follow that reconciliation.
this stuff sucks i hate it… it makes finite math look appealing! and more logical..
thanks a lot susan! nice explanations
i like your video’s susan, they’ve really helped me
You add losses and subtract gains, because you start from “Net Income” on the statement of cash flows. Losses and gains are factored into Net Income, but they don’t affect cash. Example: You earned $50k this year. Also, your house is struck by lightning, devaluing it $10k. Your “net income” this year then is $40k, because you lost $10k worth of an asset. However, if you haven’t yet fixed the house, you still have $50k in cash. Add your 10k loss to your 40k net income to get your 50k cash.
Thank you very much.
Hi Susan, Thanks so much for these videos. Very good! I don’t quite understand why you add ‘losses’ but subtract’gains’ from PP&E transactions. Can you explaine a bit more?
WOW!!! I wish you were my teacher! Great explaination. With your help, I’ll be ready for the exam tomorrow