STATEMENT OF CASH FLOWS

We're continuing to analyze the same company as in Modules 1, 2, and 3.

Based on additional information added in Modules 2 and 3, please use the information below to make a statement of cash flows.

• The beginning cash balance is $30,000.
• Use the Net Income from Module 2.
• Use depreciation expense of Module 1.
• During the year 14, Inventory increases by $42,500.
• During the year 14, Land increases by $400,000.
• During the year 14, Long-Term Debts increase by $360,000.
• During the year 14, the company made a secondary offering of stock and raised an additional $180,000, which includes $150,000 of Paid-in Capital.
• During the year 14, the company had paid $15,000 in dividends.

Using the Indirect Method, prepare a statement of cash flows for the company in good format and compare two financial statements between the income statement and statement of cash flows. You do not need to include the income statement or balance sheet.

This is a Signature Assignment Expectation for ACC201 Module 4 SLP

There are 2 specific learning outcomes: 1) apply business theories, models, and concepts to guide analysis of problems and situations and 2) utilize data driven analysis in making business decisions.

In this SLP assignment for Module 4, our emphasis will be on understanding the statement of cash flows. You will be summarizing all of what you learned the in the Cases, SLPs and Discussions.

The grading rubric below has been developed to measure student success in meeting the ACC201 Module 4 SLP expectations related to applying your knowledge of the statement of cash flows and income statement on making business decisions.

Assignment Expectation

Weak 

Marginal 

Adequate 

Strong 

Organization

Demonstrates the ability to create   content logically, concisely, and in an appropriate manner to understanding   of the statement of cash flows.

There is no logical sequence of   information. Wording is rambling and unfocused.

Paper does not follow a logical   sequence.

Paper follows a logical sequence.   There are some minor problems with sub-classification and/or results are not   clear.

Paper follows a logical sequence with   a correct computation and results. Each activity relates to others in a   carefully organized framework.

Demonstrates the ability to support a   central point or viewpoint throughout the paper.

Insufficient elaboration and/or   support (e.g., computation, each activity) in the paper.

Limited elaboration and/or support in   the paper.

Support with some specific details and   elaboration in the paper.

Support through both specific details   and elaboration apparent in the paper.

Content

Demonstrates the ability to calculate   cash flows from each activity and compare cash flows with net income.

The purpose is not identified, is   unclear, or inappropriate in the paper.

Purpose is occasionally unclear in the   paper.

Clear purpose, but not consistently   sustained throughout the paper.

Clear purpose sustained throughout the   paper.

Demonstrates the ability to gather and   sort accounting information and data on a particular activity.

Does not have a grasp of information   and appropriate data. Topic is poorly created. Supporting explanations are   absent or vague. Trite ideas and/or unclear wording reflect a lack of   understanding of topic.

Seems uncomfortable with information   and data. Topic is evident but with little or no elaboration.

Seems comfortable with the accounting   information and data. Topic is evident with some supporting details.

Demonstrates full knowledge of the   topic with explanation and elaboration. The topic is well developed,   effectively supported, and appropriate for the assignment. Critical thinking   is clearly and creatively expressed. Data choices are well thought out.

Delivery

Demonstrates the ability to use   appropriate word choice and grammar in the paper.

There are many sentences with   grammatical errors. Some sentences are incomplete/halting, and/or vocabulary   is somewhat limited or inappropriate.

There are a few sentences that are   complete and grammatical. Word choice is not always appropriate for   presentation.

Sentences are generally complete and   grammatical, and they flow together easily. With a few exceptions, words are   chosen for their precise meaning.

All sentences are complete and   grammatical, and they flow together easily. Words are chosen for their   precise meaning. Word choice illustrates grasp of content and enhances   explanation.

Demonstrates the ability to make an   effective explanation outline that is free from bias.

Words chosen for an explanation are   inappropriate and exhibits bias. Some readers may be confused.

Words chosen for the paper are free   from bias with one or two minor exceptions.

Words have no apparent bias. There is   some inappropriate explanation.

Words and explanation are completely   free from bias.

SLP Assignment Expectations

• Create a statement of cash flows and compare cash flows with net income.
• Write 2- to 4-pages, showing computations and discussing the results.
• List supporting references and cite sources.
• Use appropriate writing style (organization, grammar, & spelling - see Writing Guidelines)