AG Bookkeeping Services LLC

In order to prepare a statement of cash flows, you have to look back at the comparative balance sheets for XYZ company. From the two years of balance sheet data and some income statement data, you build your statement of cash flows. In this example, we will assume that net income is $110,500, depreciation is $50,000, and the firm pays out dividends in the amount of $65,000. The Statement of Cash Flows has three sections. The first section is Cash Flows from Operating Activities. Line 1 of this section is Net Income. To net income, add Line 2, which is depreciation. After taking net income and depreciation into account in the section for operating activities, you then consider any increases or decreases in your current asset and current liability accounts between the two years of balance sheet information. Looking at the balance sheets, accounts receivable, line 3, has increased from $170,000 to $200,000 for an increase of $30,000. Since that increase occurred on the asset side of t...

Every day, new business ventures are created. Some of these businesses will succeed, but many will fall by the wayside. Others will be able to take-off to a great start, given their ample resources and capital, but will falter along the way. Some ventures may be on a shaky ground at the start, but with perseverance and careful planning will prevail in the end. Will your business thrive, or will it join thousands of others that have faltered along the way? Here are ten rules to make sure your business grows and prospers: 1. Find a Niche.   For small businesses, it is best to find a niche. A small company with limited resources can efficiently serve niche markets. Concentrate your efforts on a fairly narrow market offering. This entails sticking to what you do best, and becoming an expert in that field. Realize that it is not possible to be good at everything. By concentrating on a fairly narrow market niche, you may be able to avoid head-on collision with bigger competitors. If y...