Larissa of East Coast discovered a few errors with the information she provided Dan to analyze cash flows. The company
Posted: Fri Mar 04, 2022 9:37 am
Larissa of East Coast discovered a few errors with the
information she provided Dan to analyze cash flows. The
company raised $36 million in new long-term debt, but according to
the new accountant it only retired $16.907 million. It
sold $21.8 million in stock, but it repurchased
$36 million. East Coast also purchased $53.5 million in
fixed assets and sold $5.046 million. The errors were due to
accounting issues.
How do these changes affect possible expansion plans for East
Coast Yachts?
How could using only the Accounting Statement of Cash Flows
cause a problem when considering these plans?
information she provided Dan to analyze cash flows. The
company raised $36 million in new long-term debt, but according to
the new accountant it only retired $16.907 million. It
sold $21.8 million in stock, but it repurchased
$36 million. East Coast also purchased $53.5 million in
fixed assets and sold $5.046 million. The errors were due to
accounting issues.
How do these changes affect possible expansion plans for East
Coast Yachts?
How could using only the Accounting Statement of Cash Flows
cause a problem when considering these plans?