October 15, 2016 at 3:24 pm #1273036
In NINJA FAR book, pp. 47-48, there's a sample Statement of Cash Flows. The “Net cash provided by operating activities” comes to $102, but in the section where it reconciles this to Net Income, it's $106. Also, in the explanatory section on p. 48, Net income taxes paid are $41, but in the original Statement of Cash Flows on p. 47, it says $45 cash out.
The $102 on p. 47 makes the change in cash on hand from 20X1 to 20X2 come out right So I still can't see where the $4 went.
Also on p. 30, in the Application, if on a single-step Income Statement, **ALL** revenues and gains are combined, then why is “results from discontinued operations” not included in the answer?
Maybe I should send this through “Ask Jeff”, but I do not understand the podcast concept.November 6, 2016 at 10:19 pm #1314409sharParticipant
Did you get any answers from Jeff?November 7, 2016 at 12:36 am #1314451
Not yet. I haven't had time to pursue it because of a new job and getting adjusted to new schedule. I'm hoping to start a major study push right after Thanksgiving and then try FAR again mid to late January.
I studied 130 hours over 5 weeks in July and could only muster a 74. And wasn't working at the time. I've already paid for the new NTS to force myself to do this again. Why is this process so grim? I read what people say – “I don't like the person I become when I'm doing this” – and that's my experience too.December 5, 2016 at 10:46 pm #1371644
I'm still trying to figure this out. Is it because of the $4k in taxes on the $10k gain on retired bonds? See p. 46. Why doesn't the income statement on p. 46 have this gain listed, compare the sample income statement on p.26. How do I know that this $4k isn't already included in the $5k increase in taxes payable?
This is just the kind of thing that would trip me up in a SIM for FAR and would eat up all the time. This shouldn't be harder than a bank reconciliation, or one shouldn't even aspire to be an accountant.
- You must be logged in to reply to this topic.