NINJA FAR book question on Statement of Cash Flows

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  • #1273036
    Cjsr
    Participant

    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.

    BEC Jan 2016 83 Becker FastPass
    REG Jan 2016 83
    AUD May 2016 92
    FAR Jul 2016 74
    FAR Mar 2017. 91 Becker book + NINJA 10-point combo
    #1314409
    shar
    Participant

    Hey Cjsr,

    Did you get any answers from Jeff?

    #1314451
    Cjsr
    Participant

    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.

    BEC Jan 2016 83 Becker FastPass
    REG Jan 2016 83
    AUD May 2016 92
    FAR Jul 2016 74
    FAR Mar 2017. 91 Becker book + NINJA 10-point combo
    #1371644
    Cjsr
    Participant

    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.

    BEC Jan 2016 83 Becker FastPass
    REG Jan 2016 83
    AUD May 2016 92
    FAR Jul 2016 74
    FAR Mar 2017. 91 Becker book + NINJA 10-point combo
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