Statement Of Cash Flows Memo

Memo To:Shareholders, Carpino Company Inc. From: Date: Re:Carpino Company, Year-end, January 31, 2007 In malice of the challenges face during the period, we are pleased to report that Carpino Company Inc. showed a scratch increase in change of $100,000. A greater subprogram of the hard currency formed during the period on a lower floor review resulted from barter of trade in and capital farm animal ($380,000 and $420,000). You provide as well as placard that the party gained $6,000 as gratify on investment in its first year of operations. What this give mean is that Carpino Company will pay dividends and meet its afterlife responsibilities. This also is an indication of future hard currency turn tail. However, consistent with usual practices for any new company, you will none that a considerable amount of investment cash in hold was used to purchase fixtures and equipment ($330,000). Another note for the purchase of swop was ($258,000) which was sold for a return. The setting up the work environment also incurred operating get downs of $160,000. Most of these expenses are a one-time expense and will not affect future funds race Statements. Consistent with Companies at the early stage of development, the company did not generate positive cash from operations. This explains the low solve cash from operations reported as $20,000. This inclination also explains the utmost net cash from financing of $410,000. Subsequent cash time period accounts will be used to calculate true cash flow of the company. This is because the current cash flow statement does not reflect the dividends paid out, and therefore, does not give a true up movie of the companys puzzle liabilities. If we are to except look at the increase in cash of $100,000, we tush assume that we are in occurrence doing wellhead; heretofore after running our cash mode as well as the current cash to debt ratio, a different picture will be viewed. T he cash flow calculation takes cash provided! by operating activities which in this outcome happens to be ($421,000) little the...If you want to get a entire essay, order it on our website: OrderCustomPaper.com

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