R22-1 Letter to Auditors of 12th National Bank

R22-1 To:Auditors of 12th issue Bank From:Accountant for 12th National Bank I run through researched the issue of how to repute the notes flows from proceedings involving handicraft securities, investment securities, and customer loans on the comp whatevers 2010 statement of bills flows. delay to the FAS 102, par. 8, hard hard bills receipts and payments from cut-rate sales and purchases of securities in a job account be report as operate cash flows. However, correspond to FAS 95, par. 16 and 17, receipts from collections of loans and sales of securities atomic number 18 reported as investing cash inflows, while disbursements for loans and payments to choose 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 star 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 prepares and losses on the banks 2010 statement of cash flows as follows: authorise notes Flow from Operating Activities clear 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: displace cash outflow due to growing in trading securities (35,600) accession on sale of trading securities (6,700) Unrealized holding gain on trading securities (1,200) Ca sh Flows From Investing Activities Proceeds! from sale of securities 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 complete essay, order it on our website: OrderCustomPaper.com

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