Accounting 211 Financial and Managerial Accounting
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Transcript of Accounting 211 Financial and Managerial Accounting
Accounting 211Financial and Managerial Accounting
Teaching Assistant
Hyun Jung (JoAnn) Lee
Spring , 2008Spring , 20082
Contents
1. Introduction
2. Review of Chapter 12
3. Practice
Introduction1
Spring , 2008Spring , 20084
Personal Blog : www.personal.psu.edu/hul152
Click on “ACCTG 211 Spring 2008”
Office : 381A Business Building, 814-863-3796
Office Hour : 8 AM. ~ 10:00 AM on Tuesday
Email : [email protected]
Recitation Materials
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NO MORE WILEY!!~
Grading componentsProfessor Ketz : Financial AccountingProfessor Ketz : Financial Accounting
Professor Huddart : Managerial Accounting Professor Huddart : Managerial Accounting
Number Grade = 2/3 * Financial Acc. +1/3*Managerial Acc.Number Grade = 2/3 * Financial Acc. +1/3*Managerial Acc.
Financial AccountingMAX(A, B)MAX(A, B)
A : ( Homework + Exam1+ Exam2 )/3A : ( Homework + Exam1+ Exam2 )/3
B : ( Exam1+ Exam2 )/2B : ( Exam1+ Exam2 )/2
Exam 2 : Exam 2 : Mar 26, 8:15 to 10:00 PM. Mar 26, 8:15 to 10:00 PM.
Exam Information will be announcedExam Information will be announced
Evaluation
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Ask “W.G. Deng” for “PERMISSION”
Contact Information
Office : 350A Business BuildingOffice : 350A Business Building
Phone : 863-5467Phone : 863-5467
Email : [email protected] : [email protected]
Office Hours : Mon & Thrs from 1pm until 3pm and by appointment.Office Hours : Mon & Thrs from 1pm until 3pm and by appointment.
Only one chance to take it
Makeup for the Second Exam : Makeup for the Second Exam : April 5th on SaturdayApril 5th on Saturday
Make-up Exam Assignments
Review of Chapter 12 2
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Direct Method : not covered
Shows net cash inflow (outflow) from operations by converting Shows net cash inflow (outflow) from operations by converting
accrual numbers (i.e. sales & expenses) to cash numbers.accrual numbers (i.e. sales & expenses) to cash numbers.
Recommended by the FASB, but rarely used.Recommended by the FASB, but rarely used.
Requires “reconciliation” (which is actually the Indirect Method so Requires “reconciliation” (which is actually the Indirect Method so
you have to do both Direct & Indirect; easy to see why so many use you have to do both Direct & Indirect; easy to see why so many use
the Indirect Methodthe Indirect Method
Indirect Method : Covered this courseShows net cash inflow (outflow) from operations as an adjustment Shows net cash inflow (outflow) from operations as an adjustment of net income.of net income.
Used by 97% of companies.Used by 97% of companies.
Two Alternative Approaches
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The direct method provides more detail about cash from
operating activities.
Shows individual operating cash flows.Shows individual operating cash flows.
Shows reconciliation of operating cash flows to net income in a Shows reconciliation of operating cash flows to net income in a
supplemental schedule.supplemental schedule.
The investing and financing sections for the two
methods are identical.
Net cash flow is the same for both methods.
Summary of Differences Between DM and IM
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Cash Inflow!~Receipts from customers.Receipts from customers.
Interest on receivables.Interest on receivables.
Dividends received.Dividends received.
Cash Outflow!~ Payments to suppliers.Payments to suppliers.
Interest paid on liabilities.Interest paid on liabilities.
Income taxes paid.Income taxes paid.
Salary and wages payments.Salary and wages payments.
Cash Flow from Operating
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Cash Collect from Customer
Cash Paid to Counter party!~
Cash Flow from Operating, conti.
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Cash Flow from Investing
Capital Expenditure : Long-term Invest!~
Cash Inflows include proceeds from:
Sales of property, plant, and equipment.Sales of property, plant, and equipment.
Sales of investments in securities.Sales of investments in securities.
Collection of principal on loans made to others.Collection of principal on loans made to others.
Outflows include payments for:
The purchase of property, plant and equipment.The purchase of property, plant and equipment.
The purchase of long-term investments.The purchase of long-term investments.
Loans to others.Loans to others.
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Cash Flow from Financing
Dividends paid ; Debt or Equity Issuance; Repayment
Inflows include:
Proceeds from sale of stock.Proceeds from sale of stock.
Proceeds from sale of bonds and from borrowings.Proceeds from sale of bonds and from borrowings.
Outflows include:
Payments to purchase treasury stock.Payments to purchase treasury stock.
Principal payments to retire bonds and loans.Principal payments to retire bonds and loans.
Dividends paid to owners.Dividends paid to owners.
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Indirect Method template
3Practice!!!
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Problem 12-9
Professor has opened up a number of problems
(including the solutions) on WileyPLUS should YOU
wish to work more problems.
Chapter 9: Practice A
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Do you have any questions?
Welcome to Accounting World!!~
381A Business Building
814-863-3796, [email protected]