Statement Of Cash Flows Memo

Memo To:Shareholders, Carpino Company Inc. From: Date: Re:Carpino Company, Year-end, January 31, 2007 In transgress 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 below review resulted from barter of trade in and capital blood line ($380,000 and $420,000). You provide overly placard that the smart set gained $6,000 as kindle on investment in its first year of operations. What this testament mean is that Carpino Company will pay dividends and meet its time to come responsibilities. This also is an indication of future hard currency turn tail. However, accordant with usual practices for any new company, you will none that a considerable amount of investment cash in pot was used to purchase fixtures and equipment ($330,000). Another note for the purchase of intersection was ($258,000) which was sold for a return. The setting up the work sidestep also incurred operating get downs of $160,000. Most of these expenses are a one-time expense and will not affect future capital race Statements. Consistent with Companies at the early stage of development, the company did not generate positive cash from operations. This explains the low dismiss cash from operations reported as $20,000.

This inclination also explains the utmost net cash from financing of $410,000. Subsequent cash flow asseverations will be used to calculate tangible cash flow of the company. This is because the current cash flow stat ement does not reflect the dividends paid ou! t, and therefore, does not give a true up movie of the companys innovate 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 order as well as the current cash to debt ratio, a different picture will be viewed. The cash flow calculation takes cash provided by operating activities which in this illustration happens to be ($421,000) little the...If you want to get a ripe essay, order it on our website: OrderCustomPaper.com

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