I can't seem to figure out how to calculate the net income for a cash flow statement when your not given the income statement in the question.. I was only given the adjusted trial balance.. Does anyone know how?
The adjusted trial balance includes:
accts payable
accts receivable
accumulated amortization
allowance for doubtful accts
amortization expense
cash
cash dividends
common shares
equipment
machinery
merchandise inventory
notes payable
other expenses (including losses)
preferred shares
retained earnings
revenues (including gains)
unearned revenue
EDIT:
Well I just got finished trying various ways and the way I found out is to work your way from the *bottom* of the cash flow statement (filling in beginning and ending year cash balances and calculating net income increase or decrease) You can then continue to calculate the financing and investing parts of the cash flow statement.. After that fill in the adjustments.
When you finish filling everything in all you have to do is take the ending year cash balance and subtract net income increase/decrease,adjustments,financing and investing. This will give you the number that the income statement would have to be for the ending cash balance to be what it is.
Anyway, I am gone now.. forever. Bye all