Financial statement analysis help
I'm Looking at a company who uses the direct method to get to CFO. Cash Receipts from customers is $7bn but revenue as recorded on the IS is $6bn. Receivables only fell by c.200m so I'm not sure where the rest of this $800m is coming from. Any ideas?
Unearned revenue
It's not unearned revenue either because that would be on the BS...
Unearned revenue would be a liability, and it works the same way accounts payable does. An increase in unearned revenue does not affect net income or s/h equity, but it does increase cash since payment has been received for a future good or service. Would be my best guess anyway.
It's not unearned revenue.
The annual report for the company can be found here: http://www.arrium.com/~/media/Files/ASX%20Announcements/FY2014/Annual%2…
Edit - Didnt read OP properly
Discontinued operations.
Thanks
Until someone asks where the other $40m is and you can't answer...
Rerum et et quia non nesciunt tempora. Est laboriosam omnis id ut. Fuga hic quis qui numquam perspiciatis.
Blanditiis dolore cumque quaerat non quia. Est quis ut iste et repellendus officia minus numquam. Ex consequatur non est assumenda. Quia aut aut optio ratione accusamus ipsum fuga.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...