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craete statement of operation

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Operating Statement - Mobile Home Park Instructions: 1. Complete the property information in Section 1 below. 2. Provide operating history for the prior year ended 12/31 and current year-to-date.
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Video instructions and help with filling out and completing craete statement of operation
In this video we're going to talk about how to compute cash flow from operations when you're using the indirect method to create a statement of cash flows so first let's understand what cash flow from operations means so we're talking about the net cash that's provided or used if it's a negative number by the firm's core business and so when we say core business that's what we mean by operations right so the firm we're not talking about the investing if they're you know buying a capital equipment or something and they decide to sell that capital equipment later that's not really maybe part of their core business that's just something they do incidentally and and we're not talking about financing either right so we're not talking about raising money through common stock so this is not investing not financing if the money doesn't come from those sources that we're going to say that it comes from operations and this this definition isn't perfect but we're going to work with it for right now and I'm just going to show you an example a short example of how we go about computing the cash flow from operation so let's say we have a company called healthy food industries and so we're going to need to know a few things in order to calculate the cash flow from operations and we're going to need to know net income and that's important because the first thing we're going to do when we calculate cash flow from operations so just cause CFO here when we calculate that we're going to start with net income and then we're going to make adjustments to it and the reason is that when we think about money that we're generating from operations net income is a pretty good proxy the problem is the net income is computed on an accrual basis right so this has accruals in it and what we want to do is we want to make adjustments to the net income to convert it more and more to a cash basis so what we're going to have to do is account for things like for example depreciation expense those are non-cash transactions right so when we're taking depreciation expense that's reducing our net income but that has nothing to do with cash so we need to know okay we have $300 in depreciation expense and then we have a $50 loss on the sale of some equipment and so I'm going to explain why that's relevant a minute but what we're also going to need aside from knowing these numbers from the income statement we're also going to need to know numbers from the balance sheets and in particular we're going to have what's called a comparative balance sheet so we're gonna have balance sheet for two different years so let's say this is the end of year one of operations that's what our balance sheet looks like and then at the end of year two this is what the balance sheet looks like and so we compare those two snapshots of the balance sheet of the firm's liquidity at those points in time and we've got these three accounts that we're going to be looking at right now in reality a firm will probably have...