Power Notes: Statement of Cash Flows

Chapter 15
Power Notes
Statement of Cash Flows
Learning Objectives
1. 2. 3. 4. 5. Purpose of the Statement of Cash Flows Reporting Cash Flows Statement of Cash Flows The Indirect Method Statement of Cash Flows The Direct Method Financial Analysis and Interpretation
C15
C15 - 1
Chapter 15
Power Notes
Slide # Power Note Topics

3 20 31 34 39 62
Cash Flow Basics Statement of Cash Flows Two Methods Changes in Current Accounts Statement of Cash Flows Indirect Method Statement of Cash Flows Direct Method Free Cash Flow
Note: To select a topic, type the slide # and press Enter.

C15 - 2
Reporting Cash Flows

The statement of cash flows reports a firms major cash inflows and outflows for a period. Cash flows are reported by three types of activities. 1. Operating activities transactions that affect net income. 2. Investing activities transactions that affect noncurrent assets. 3. Financing activities transactions that affect equity and debt of the entity.
C15 - 3
Cash Flows
Increases in Cash Decreases in Cash
Cash
C15 - 4
Cash Flows
Increases in Cash Operating
(receipts from revenues)
Decreases in Cash
Cash
C15 - 5
Cash Flows
Decreases in Cash Operating

(payments for expenses)
Cash
C15 - 6
Cash Flows

Investing
(receipts from sales of noncurrent assets)
Cash
C15 - 7
Cash Flows

Investing
Cash
Investing
(payments for aquiring noncurrent assets)
C15 - 8
Cash Flows

Investing
Cash
Investing
Financing
(receipts from issuing equity and debt securities)
C15 - 9
Cash Flows

Investing
Cash
Investing
Financing
(receipts from issuing equity and debt securities)
Financing
(payments for dividends, and redemption of debt securities)
C15 - 10
Cash Flows Operating Activities

Typical cash inflows Typical cash outflows
What are some of the typical cash inflows from operating activities?
C15 - 11

Typical cash inflows Sales of goods and services Typical cash outflows
Interest Revenue
Dividend Revenue
What are some of the typical cash outflows from operating activities?
C15 - 12

Typical cash inflows Sales of goods and services Typical cash outflows Merchandise purchases
Interest Revenue
Dividend Revenue
Payments of wages & other expenses Tax payments
C15 - 13
Cash Flows Investing Activities

What are some of the typical cash inflows from investing activities?
C15 - 14

Typical cash inflows
Sales of fixed assets and other long-term investments Sale of marketable securities and investments
Typical cash outflows
What are some of the typical cash outflows from investing activities?
C15 - 15

Sales of fixed assets and other long-term investments Sale of marketable securities and investments

Purchase of fixed assets and other longterm investments Purchase of marketable securities and investments
C15 - 16
Cash Flows Financing Activities

What are some of the typical cash inflows from financing activities?
C15 - 17

Sales (issuance) of stock Sale (issuance) of bonds and other money market debt Borrowing from banks and other lending institutions
What are some of the typical cash outflows from financing activities?
C15 - 18

Sales (issuance) of stock Sale (issuance) of bonds and other money market debt Borrowing from banks and other lending institutions

Purchase of treasury stock Repayment and redemption of debt (bonds, notes, other) Payment of cash dividends
C15 - 19

The statement of cash flows is invaluable in assessing the capacity of a firm to achieve goals such as: 1. Generate cash flow from operations.
2. Maintain and expand operating capacity.

3. Pay dividends. 4. Pay debts, including interest, when due.
5. Generate future profits.

The primary attention is the flow of cash rather than net income.
C15 - 20
Preparing the Statement of Cash Flows

Direct Method Net cash flows from operating activities will be the difference between the operating cash receipts and operating cash payments. Indirect Method
Net cash flows from operating activities is determined by adjusting the accrual net income from operations to reflect a cash-based net income from operations.
C15 - 21
Advantages of Using the Direct Method

1. Reports the sources and uses of operating cash receipts and payments. 2. Is easier to understand for many investors. 3. Recommended by the Financial Accounting Standards Board (FASB). Note: The total amount of net cash flow from operating activities will be the same for both direct and indirect methods. Investing and Financing activities sections will be identical for both methods.
C15 - 22
Advantages of Using the Indirect Method

1. Focuses on the differences between net income and net cash flow from operations.
2. Reveals the relationship between the income statement, the balance sheet, and the statement of cash flows.
3. Less costly to prepare.
4. Must be prepared as a supplemental report even if the direct method is used.

5. 98 percent of companies surveyed use the indirect method.
C15 - 23
NetSolutions Statement of Cash Flows Direct Method For the Month Ended November 30, 2002
Cash flows from operating activities:

Cash received from customers Deduct cash payments for expenses and payment to creditors Net cash flow from operating activities $ 7,500 4,600 $ 2,900 (10,000) $15,000 2,000 13,000 $ 5,900
Cash flows from investing activities:

Cash payments for acquiring land
Cash flows from financing activities:
Cash received as owners investment Deduct cash withdrawal by owner Net cash flow from financing activities Net cash flow and ending cash balance
C15 - 24
NetSolutions Statement of Cash Flows Indirect Method For the Month Ended November 30, 2002

Net income, per income statement Add increase in accounts payable Deduct increase in supplies Net cash flow from operating activities $ 3,050 400 (550) $ 2,900 (10,000) $15,000 2,000 13,000 $ 5,900
Cash flows from investing activities:

Cash payments for acquiring of land
Cash flows from financing activities:
Cash received as owners investment Deduct cash withdrawal by owner Net cash flow from financing activities Net cash flow and ending cash balance
C15 - 25

Cash received from customers Deduct cash payments for expenses and payment to creditors Net cash flow from operating activities $ 7,500 4,600 $ 2,900

Net income, per income statement Add increase in accounts payable Deduct increase in supplies Net cash flow from operating activities $ 3,050 400 (550) $ 2,900
C15 - 26

Cash received from customers Deduct cash payments for expenses and payment to creditors Net cash flow from operating activities $ 7,500 4,600 $ 2,900

Net income, per income statement Add increase in accounts payable Deduct increase in supplies Net cash flow from operating activities $ 3,050 400 (550) $ 2,900
C15 - 27
Cash Relationships and Cash Flows

Balance Sheet
Cash Liabilities Noncash Assets Stockholders Equity
Assets = Liabilities + Stockholders Equity Cash + Noncash Assets = Liabilities + Stockholders Equity Cash = Liabilities + Stockholders Equity Noncash Assets
C15 - 28

Balance Sheet
Cash Liabilities Noncash Assets Stockholders Equity
C15 - 29

Balance Sheet
Cash Noncash 3 Assets 1 Liabilities Stockholders 2 Equity
1 2 3
The cash flows are determined by analyzing liabilities, stockholders equity, and noncash assets.
C15 - 30
Changes in Current Accounts

Accounts 2003 2002 Trade receivables (net) $74,000 $65,000 Inventories 172,000 180,000 Accounts payable (mdse.) 43,500 46,700 Accrued expenses payable 26,500 24,300 Income taxes payable 7,900 8,400
Change Debit Credit 9,000 8,000 3,200 2,200 500
Determine the debit or credit change of each item above.
C15 - 31

These debit changes are subtracted from net income in the operating activities section of the statement of cash flows. Think of these debits as deductions from net income in arriving at net cash flow from operations.
C15 - 32

These credit changes are added to net income in the operating activities section of the statement of cash flows. Think of these credits as additions to net income in arriving at net cash flow from operations.
C15 - 33
Operating Activities Indirect Method

Net income, per income statement Add: Depreciation Decrease in inventories Increase in accrued expenses Deduct: Increase in accounts receivables Decrease in accounts payable Decrease in income taxes payable Gain on sale of land Net cash flow from operating activities $108,000 $ 7,000 8,000 2,200 $ 9,000 3,200 500 12,000
17,200 $125,200
24,700 $100,500
Start with the accrual basis net income shown on the income statement.
C15 - 34

17,200 $125,200
24,700 $100,500
Because depreciation expense reduced net income but did not require an outflow of cash, it is added back to net income.
C15 - 35

17,200 $125,200
24,700 $100,500
These represent credit changes in the current accounts. Think of these credits as additional income from a cash perspective. Why do these represent an increased cash flow?
C15 - 36

17,200 $125,200
24,700 $100,500
These represent debit changes in the current accounts. Think of these debits as additional expense from a cash perspective. Why do these represent a reduced cash flow?
C15 - 37

17,200 $125,200
24,700 $100,500
This gain was included in net income but did not represent an operating cash flow. The related cash inflow from the sale is reported in the cash flows from investing activities section.
C15 - 38

These changes in current accounts were used to prepare the statement of cash flows with the indirect method. They will also be used for the direct method that follows.
C15 - 39
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Income from operations $ 187,000 Other income: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Income before income tax $ 191,000 Income tax This is an accrual basis income statement. 83,000 Net 108,000 Theincome direct method of reporting cash flows$will essentially convert this to a cash basis statement.
Cash Basis
C15 - 40
Rundell Inc. Income Statement For the Year Ended December 31, 2003
Cash Basis
Sales $960,000 Cost of merchandise sold 580,000 Cash collected Gross profit $380,000 Changes from customers Operating expenses: Debit Credit Depreciation expense $ 18,000 Sales 960,000 Other operating expenses 260,000 Receivables 9,000 Note: All income statement account Total operating expenses 278,000 Cash balances are zero at the beginning Income from operations $102,000 of a period. Therefore, the balance Other income: shown represents the amount of Gain on sale of investments $30,000 change during the period. Other expense: Interest expense 14,000 16,000 Income before income tax $118,000 Income tax 27,500 Net income $ 90,500
C15 - 41
Cash Basis
Sales $1,180,000 Cost of merchandise sold 790,000 Cash collected Gross profit $390,000 Changes from customers Operating expenses: Debit Credit Depreciation expense $ 7,000 Sales 1,180,000 Other operating expenses 196,000 Receivables 9,000 203,000 Total operating expenses Cash The changes1,171,000 in the current balance sheet Income from Note: operations $187,000 accounts are determined by comparing the Other income: beginning balances. Receivables Gain on sale of land and ending $12,000 increased by $9,000 during the period. Other expense: Interest expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
C15 - 42
Cash Basis
Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 Cash collected Gross profit $390,000 Changes from customers Operating expenses: Debit Credit Depreciation expense $ 7,000 Sales 1,180,000 Other operating expenses 196,000 Receivables 9,000 203,000 Total operating expenses Cash 1,171,000 $187,000 Income from operations Other income: The increase $12,000 in receivables Gain on sale of land represents a reduction in cash inflow Other expense: Interest expense relative to the accrual 8,000 revenue 4,000 reported statement. Income before income tax on the income $ 191,000 Income tax 83,000 Net income $ 108,000
C15 - 43
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales Cost of merchandise sold Gross profit Cash payments for Operating expenses: merchandise Depreciation expense Other operating expenses Cost of mdse. sold Total operating expenses Inventories Income from operations Accounts payable Other income: Cash Gain on sale of land Other expense: Interest expense Income before income tax Income tax Net income $1,180,000 790,000 $390,000 Changes $ Debit 7,000 Credit 196,000 790,000 203,000 8,000 $187,000 3,200 $12,000 8,000 4,000 $ 191,000 83,000 $ 108,000
Cash Basis $1,171,000
C15 - 44
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales Cost of merchandise sold Gross profit Cash payments for Operating expenses: merchandise Depreciation expense Other operating expenses Cost of mdse. sold Total operating expenses Inventories Income from operations Accounts payable Other income: Cash Gain on sale of land Other expense: Interest expense Income before income tax Income tax Net income $1,180,000 790,000 $390,000 Changes $ Debit 7,000 Credit 196,000 790,000 203,000 8,000 $187,000 3,200 $12,000 785,200 8,000 4,000 $ 191,000 83,000 $ 108,000
Cash Basis $1,171,000 785,200
C15 - 45
Cash Basis
Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 785,200 Gross profit $390,000 Cash payments for Operating expenses: Changes merchandise Depreciation expense $ Debit 7,000 Credit Other operating expenses Cost of mdse. sold 196,000 790,000 Total operating expenses 203,000 Inventories 8,000 Income from operations $187,000 Accounts payable 3,200 Other income: Cash Gain on sale of land $12,000 785,200 Other expense: A decrease in inventories (credit Interest expense change) and an 8,000 decrease4,000 in accounts Income before income tax $ 191,000 payable (debit change) have the Income tax 83,000 opposite effects. Net income $ 108,000
C15 - 46
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Depreciation Changes Total operating expenses 203,000 Debit $187,000 Credit Income from operations Depr. expense 7,000 Other income: Accum. depreciation $12,000 7,000 Gain on sale of land Other expense: Interest expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
C15 - 47
Cash Basis
Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 Depreciation Changes Total operating expenses 203,000 Debit $187,000 Credit Income from operations Depr. expense 7,000 Other income: Accum. depreciation $12,000 7,000 Gain on sale of land Other expense: There is no cash flow for Interest expense 8,000 4,000 depreciation expense. Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
C15 - 48
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Cash payments for Changes Income from operations $187,000 operating expenses Changes Debit Credit Other income: expenses $12,000 196,000 Gain onOperating sale of land Other expense: Accrued expenses 2,200 Interest Cash expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
C15 - 49
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Cash payments for Changes Income from operations $187,000 operating expenses Changes Debit Credit Other income: expenses $12,000 196,000 Gain onOperating sale of land Other expense: Accrued expenses 2,200 Interest Cash expense 8,000 193,800 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
C15 - 50
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $390,000 Changes Gain on sale of Operating expenses: investments Depreciation expense $Debit 7,000 Credit Cash 72,000 Other operating expenses 196,000 Investments 60,000 Total operating expenses 203,000 Gain on sale of invest. 12,000 Income from operations $187,000 Other income: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
C15 - 51
Cash Basis
Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $390,000 Changes Gain on sale of Operating expenses: investments Depreciation expense $Debit 7,000 Credit 0 Cash 72,000 Other operating expenses 196,000 (193,800) Investments 60,000 Total operating expenses 203,000 Gain on sale of invest. 12,000 Income from operations $187,000 Other income: Gain on sale of land $12,000 0 Other expense: Why isnt the cash inflow Interest expense 8,000 4,000 here? of $72,000 shown Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
C15 - 52
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $390,000 Changes Gain on sale of Operating expenses: investments Depreciation expense $Debit 7,000 Credit Cash 72,000 Other operating expenses 196,000 Investments 60,000 Total operating expenses 203,000 Gain on sale of invest. 12,000 Income from operations $187,000 Other income: Gain on sale of land $12,000 Other expense: The cash inflow of $72,000 Interest expense will be shown in 8,000 4,000 the Income before income tax $ 191,000 investing section of the Income tax statement of cash flows.83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
C15 - 53
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Cash paid for Total operating expenses 203,000 Changes interest expense Income from operations $187,000 Debit Credit Other income: Interest expense 8,000 Gain onCash sale of land $12,000 Other expense: Interest expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
C15 - 54
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Cash paid for Total operating expenses 203,000 Changes interest expense Income from operations $187,000 Debit Credit Other income: Interest expense 8,000 Gain onCash sale of land $12,000 8,000 Other expense: Interest expense 8,000 4,000 Income before income tax is no interest payable $ 191,000 There Income tax 83,000 account at the end of the year. Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
0 (8,000)
C15 - 55
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Cash paid for Changes Income from operations $187,000 Debit Credit Other income:income taxes expense $12,000 83,000 Gain onIncome sale of tax land Other expense: Income tax payable 500 Interest Cash expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
(8,000)
C15 - 56
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Cash paid for Changes Income from operations $187,000 Debit Credit Other income:income taxes expense $12,000 83,000 Gain onIncome sale of tax land Other expense: Income tax payable 500 Interest Cash expense 8,000 83,500 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
(8,000) (83,500)
C15 - 57
Rundell Inc. Income Statement For the Year Ended December 31, 2003 Sales $1,180,000 Cost of merchandise sold 790,000 Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 Other operating expenses 196,000 Total operating expenses 203,000 Income from operations $ 187,000 Other income: Gain on sale of land $12,000 Other expense: Interest expense 8,000 4,000 Income before income tax $ 191,000 Income tax 83,000 Net income $ 108,000
Cash Basis $1,171,000 (785,200)
0 (193,800)
0 (8,000) (83,500) $ 100,500

C15 - 58
Cash Basis
Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Two different views Income from operations $ 187,000 Other income: of income from Gain on sale of land $12,000 0 operations Other expense: Interest expense 8,000 4,000 (8,000) Income before income tax $ 191,000 Income tax 83,000 (83,500) Net income $ 108,000 $ 100,500
C15 - 59
Cash Basis
Sales $1,180,000 $1,171,000 Cost of merchandise sold 790,000 (785,200) Gross profit $ 390,000 Operating expenses: Depreciation expense $ 7,000 0 Other operating expenses 196,000 (193,800) Total operating expenses 203,000 Two different views Income from operations $ 187,000 Other income: of income from Gain on sale of land $12,000 0 operations Other expense: Interest expense 8,000 4,000 (8,000) Cash Income before income tax $Accrual 191,000 Basis Basis Income tax 83,000 (83,500) $ 108,000 $$ 100,500 Net income 100,500
C15 - 60
Operating Activities Direct Method

Cash inflows: Cash received from customers Cash outflows: Cash payments for merchandise Cash payments for operating expenses Cash payments for interest Cash payments for income tax Net cash flow from operating activities $1,171,000 $785,200 193,800 8,000 83,500
1,070,500 $ 100,500
C15 - 61
Financial Analysis and Interpretation

Free Cash Flow Cash flow from operations $1,400,000 Less: Cash invested in fixed assets to maintain capacity (450,000) Less: Cash used for dividends (100,000) Free cash flow $ 850,000 Use: To measure operating cash flow available for corporate purposes after providing sufficient fixed asset additions to maintain current productive capacity and dividends.
C15 - 62
Chapter 15
Power Notes
This is the last slide in Chapter 15.

Note: To see the topic slide, type 2 and press Enter.
C15 - 63

Power Notes: Statement of Cash Flows

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Power Notes: Statement of Cash Flows

Uploaded by

Copyright:

Available Formats

Chapter 15

Statement of Cash Flows

Statement of Cash Flows

Slide # Power Note Topics

Note: To select a topic, type the slide # and press Enter.

Reporting Cash Flows

Decreases in Cash Operating

Decreases in Cash Operating

Decreases in Cash Operating

Decreases in Cash Operating

Decreases in Cash Operating

Cash Flows Operating Activities

Cash Flows Operating Activities

Cash Flows Operating Activities

Payments of wages & other expenses Tax payments

Cash Flows Investing Activities

Cash Flows Investing Activities

Typical cash outflows

Cash Flows Investing Activities

Typical cash outflows

Cash Flows Financing Activities

Cash Flows Financing Activities

Typical cash outflows

Cash Flows Financing Activities

Typical cash outflows

Statement of Cash Flows

2. Maintain and expand operating capacity.

5. Generate future profits.

Preparing the Statement of Cash Flows

Advantages of Using the Direct Method

Advantages of Using the Indirect Method

4. Must be prepared as a supplemental report even if the direct method is used.

Cash flows from operating activities:

Cash flows from investing activities:

Cash flows from financing activities:

Cash flows from operating activities:

Cash flows from investing activities:

Cash flows from financing activities:

Cash flows from operating activities:

Cash flows from operating activities:

Cash flows from operating activities:

Cash flows from operating activities:

Cash Relationships and Cash Flows

Cash Relationships and Cash Flows

Cash Relationships and Cash Flows

Changes in Current Accounts

Determine the debit or credit change of each item above.

Changes in Current Accounts

Changes in Current Accounts

Operating Activities Indirect Method

Operating Activities Indirect Method

Operating Activities Indirect Method

Operating Activities Indirect Method

Operating Activities Indirect Method

Changes in Current Accounts

Cash Basis $1,171,000

Cash Basis $1,171,000 785,200

Cash Basis $1,171,000 (785,200)

Cash Basis $1,171,000 (785,200)

Cash Basis $1,171,000 (785,200)

Cash Basis $1,171,000 (785,200)

Cash Basis $1,171,000 (785,200)

Cash Basis $1,171,000 (785,200)