SCF (direct vs indirect method)

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Were there any questions on the direct and indirect methods of constructing the Statement of CF's on the exam last weekend?

If so, did they list any unusual accounts that are not normally encountered in the study notes (CFAI and Schweser)?

Thanks much to anyone who can chime in.
 
thanks.

I don't think that's really all that unusual though. You just add advances from customers to net sales as those are not part of net sales.
 
yes there are and will be for you in dec questions on constructing statements of CF's. I took dec 06 and june and didn't on either see a big balance sheet or income statement- more likely you'll get a little snapshot with the NI or sales, cogs, AR, AP, depreciation, etc... and you go figure out CFO or CFF or FCF or something like that. Definitely know that stuff inside and out and you'll be smiling when you get the question b/c it'll seem on the more basic side of what you might've already done in q-bank or practice tests on some harder questions.
 
I do remember the question had an "increase in Cash Advances"...Can someone confirm that this should be added to the net income using the Indirect Method. I was debating whether it was an increase in assets? I figured Cash Advances are cash paid upfront for services to be received in the future (so an increase in cash)...who put increases cash?
 
On the June exam I think I remember a question asking how a captial lease vs. a standard lease would affect your CFO & CFF. So know the Cash flows inside and out
 
tito26 Wrote:
-------------------------------------------------------
> I do remember the question had an "increase in
> Cash Advances"...Can someone confirm that this
> should be added to the net income using the
> Indirect Method. I was debating whether it was an
> increase in assets? I figured Cash Advances are
> cash paid upfront for services to be received in
> the future (so an increase in cash)...who put
> increases cash?

No, an increase in cash advances is substracted from NI in the indirect method, same treatment as for accounts receivable.
 
Hi all, here's my few opinions

The cash advance is something known as ''unearned revenue'', which means the client paid you in advance and will receive service from our company in the future. It's an obligation from the viewpoint of reporting entity. So same nature as A/P, has to add to NI. I am an accounting major and learnt this before. But of coz, can anyone tell us the exact wordings in the exam?
 
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