Reporting and Analyzing Cash Flows - Assignment Example

Cash Flow Analysis and Report Grade Cash Flow Report Profit Expenses Net Sales $ 348 600.00 Depreciation expense $ 25 620.00Cash Collected from sales$ 758 100.00Other expenses$ 274 995.00Cost of goods sold$ 409 500.00Loss on equipment sale$ 1 470.00Income from operations$ 46 515.00Equipment Purchase$ 26 775.00income tax$ 6 615.00Net Income$ 39 900.00Borrowed$ 4 200.00Shares Issued$ 23 100.00Total Expenses$ 328 860.00Net Cash After Operations$ 86 940.00AssetsLiabilitiesCash$ 95 550.00Prepaid Expenses$ 11 970.

00Merchandise Inventory$ 318 150.00Equipment$ 194 775.00Common shares$ 338 100.00Accumulated depreciation$ 76 125.00Retained earning$ 8 505.00Accounts payable$ 82 215.00Long-term notes payable$ 78 750.00Net Income$ 86 940,00Change in accounts receivable$ 11 955,00Change in inventory$ 43 560,00Accounts Payable$ 4 200,00Notes payable$ 25 200,00Sale of equipment$ 1 470,00Prepaid expenses$ 1 470,00Changes in Common Shares$ 23 100,00Net Cash Inflow$ 100 905,00Non-Cash Investing NoteNon-cash investments of the Popowich Inc involve purchase of the equipment, shortening the long-term notes payable, as well as issuing additional common shares.

These actions helped the company to decrease the liabilities, and increase the amount of the resources available, which increased the market operation efficiency. In accordance with the statement by Murphy (2000), these investments help the company in setting particular financial ranks for its projects and operations. Therefore, Popowich Inc managed to renovate the equipment basis, and this action is featured with lowering the costs for maintenance. However, the costs of the inventory has increased, which will cause growth of the amortization depreciations (Murphy, 2000).

On the other hand, if the equipment is used more effectively, the overall production and operation costs will lower. This non-cash investment is intended to improve the overall performance of the Popowich Inc.Issuing additional shares is the double-end stick. On the one hand, it depreciates the already existing stocks, while on the other hand this will help to improve the company’s positions on the market by attracting investments.Financing Activities NoteFinancial activities of the company are mainly associated with the time and money restrictions.

Nevertheless, the cash and non-cash investments of the Popowich Inc prevent the company from stagnation. Regardless of the fact that the further financial plans are unknown, if the existing tendency is preserved, the company will shorten the long- and short-term notes that will help to decrease the liabilities. Additionally, the proper capital budgeting will help to control expenditures.As Murphy (2000) emphasizes, the remaining capital expenses are generally graded in accordance with the profitability reported.

Hence, the financing activity of the Popowich Inc is based on the capital budgeting model. The long-term liabilities of the company represent the positive tendency, as the company is aimed at shortening these points of the budget. The stockholders’ equities are involved into the strategy of attracting investors. In the light of this fact, it should be stated that the company’s financing activities form the positive tendency.Reference ListMurphy, A. (2000). Scientific Investment Analysis (2nd ed.). Westport, CT: Quorum Books.