Cash flow concepts The following represent financial transactions that Johns field & Co. will be undertaking in the next planning period. For each transaction, check the statement or statements that will be affected immediately.
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Statement |
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Transaction |
Cash budget |
Pro forma income |
Pro forma balance |
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Cash sale |
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Credit sale |
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Accounts receivable are collected |
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Asset with 5 year life is purchased |
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Depreciation is taken |
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Amortization of goodwill is taken |
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Sale of common stock |
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Retirement of outstanding bonds |
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Fire insurance premium is paid for the next 3 years |
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