Appendix BSAMPLE PROBLEMS
FINANCIAL STATEMENTS PROBLEM
This problem set is an effective way to capture the relationship between the balance sheet, income statement, and cash flow statement. First, construct an income statement to arrive at net income. This will form the starting point for the cash flow statement, which takes into account the changes in cash.
Problem: Help your client with his finances by organizing the following into an income statement and cash flow statement. Make sure to include:
Sales
Expenses
Cash Flow from Operations
Cash Flow from Investing
Cash Flow from Financing
Net Change in Cash
T. Soprano Associates (Note: Not Intended for IRS use)
FINANCIAL STATEMENTS SOLUTION
VALUATION PROBLEM
Compare valuation numbers based ...
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