7) Row 23 (beginning of year cash) equals the end of the year cash for the prior

Question

7) Row 23 (beginning of year cash) equals the end of the year cash for the prior year 8) Row 32 (income ) r your pare ts have a poste roome before taxes 0?»D), mutpey ter ieome before taxes tres the tax rate 9) Save your work 10) Create the scenario as described below 11) Your charging cels for all scenarios are C10 to H10 and C11, the resut cel is H14 2) Name your frst scenare Retre Eary Stay" wth these vaues: R, R, R,RRRY 3) Name your 2nd scenar "Retire EarlylMovewith these value R, R.R,R.RRN 14) Name your 3rd scenare DelaySay' weh rose values w.W.W,R.R,RY 5) Name your 4th scenario DelayMove wth these values W.W,W.R,RR,N 16) Format the spreadshee o bok ke the fotowing fqures make sure the change the labels 17) Save and close your fie and then Upload your file to Entropy Row 17. otherwee ro tales are due f your ncome negative to match the rew column A heading (ie. Redire or Work, 2008.)

Explanation / Answer

7) Understand the basic of the cashflow statement- It states that when a cash flow is prepared for a yr basis the income statement, it always ends with the closing balance. This closing balance appears as cash in hand in income statement and also appears as opening balance while preparing cashflow statement of the next yr. This opening balance is added to the balance of that particular year to arrive at the closing balance of that yr.

For eg,

8) Correct. Taxable income is received by deducting all capital allowances, deductions, depreciation, interest paid from the (operating+investing+finance income - expenditures) income.If this is positive, it is * with the Tax rate to come to Tax to be paid. Net income is received after deducting this Tax amount from the Taxable income calculated.

Cashflow statement YR 2017 YR 2018 Operating cashflow O1 O2 + Financing cashflow F1 F2 + Investing cashflow I1 I2 + Opening balance "0" or cash in bank (from P&L statement) C1 = Closing balance O1+F1+I1+0 = C1 O2+F2+I2+(C1)

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