Cash

Question 1

Convert Cash to Accrual NI

Answer 1

Add increase in receivables
Add increase in ppds
Add decrease in payables
Subt decrease in receivables
Subt decrease in ppds
Subt increase in payables

Question 2

Convert cash payments to COGS expense

Answer 2

Add increase in AP
Add decrease in inventory
Subt decrease in AP
Subt increase in inventory to COGS

Question 3

Cash flow (indirect method)

Answer 3

Start w/ NI
Add back deprec
Subt gain on sale of eqpt (or add loss)
Subt increases in AR, Inv, Ppds, other current assets
Add decreases in AR, Inv, Ppds, other current assets
Add increases in AP, accrued exp, other liabs
Subt decreases in AP, accrued exp, other current liab