R22-1 Letter to Auditors of 12th National Bank

R22-1 To:Auditors of 12th theme Bank From:Accountant for 12th National Bank I pretend researched the issue of how to brood the notes flows from proceeding involving handicraft securities, investment securities, and customer loans on the comp whatevers 2010 statement of bills flows. hold to the FAS 102, par. 8, hard property receipts and payments from deals and purchases of securities in a job account be report as operate bullion flows. However, gibe to FAS 95, par. 16 and 17, receipts from collections of loans and sales of securities ar reported as investing cash inflows, while disbursements for loans and payments to study securities are reported as investing cash outflows. Furthermore, according to FAS 104, par. 7a, banks may report the net cash flows for loans made to customers and head teacher collections of loans.

establish on these accounting standards, I plan to report the cash flows of 12th National Bank pertaining to trading securities, securities visible(prenominal) for sale, and loans to customers, on with net income and the related advances and losses on the banks 2010 statement of cash flows as follows: authorise cash in Flow from Operating Activities dough Income 75,800 Adjustments for differences between income flows and cash flows from operating activities: Add:Loss on sale of securities available for sale 5,100 Less: electronic network cash outflow due to growing in trading securities (35,600) profits on sale of trading securities (6,700) Unrealized holding gain on trading securities (1,200) Cash Flows From Invest ing Activities Proceeds from sale of securi! ties available for sale 53,600 Payments for purchase of securities available for sale (39,400) Net increase in customer loans (27,500) Please contact me if you have any questions. Kevin Dauzy References Financial Accounting Standards Board (Feb. 1989) FAS 102 Statement of Cash Flows. Retrieved from hypertext transfer protocol://72.3.243.42/pdf/fas102.pdf Financial...If you want to get a abounding essay, order it on our website: OrderCustomPaper.com

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