Can you answer Alex A’s question about Factoring?:

If land or houses built and in inventory are impaired and “written down” to mkt value which reduces profit on the P&L as an expense or charge, why does this figure end up as an increase on the cash flow statement?

Its a non-cash event is it not? Example: if you write down the value of land and a house (you’re a builder) for $50,000 due to fallen prices, why does this $50,000 charge end up as an increase to the cash account and improve the cash flow statement?

Obviously, I’m not an accountant and this seems very counter intuitive. If what I described is correct, you do not have an additional $50,000 in your bank account to spend.

What am I missing?

Structured Settlement Funding

Can you answer Bugoy’s question about Factoring?:

The interest I am paying for this loan is included in my net income (which is under cash flow from operations). So I am not sure what to put in the financing section. Am I supposed to put in exactly how much I received as a loan. For example, if I receive 5M dollars in loan in 2008, would this be included in this section. Also, would this be negative 5M or positive 5M.

Thank you. Any kind of help would be greatly appreciated.

Factoring Tips

Can you answer KAH’s question about Factoring?:

I am working on a problem. I have a couple’s Statement of Financial Position and Annual Cash Flow Statement. From this info, how do I calculate discrectionary cash flow?

Invoice Factoring Company

Can you answer think’s question about Factoring?:

I have a project which to make the annual cash flow statement for XYZ company from their quarterly reports. Should I just add up amount of cash receipts and cash expenditures for all three sections because I was told there are some tricky things when someone does that? Your help is much appreciated.
I know how to make them, but I am not sure whether or not I should add cash (receipts or expenditures) in quarter 1, quarter 2, quarter 3, and quarter 4 to figure out the annual cash (receipts or expenditures)

Have you claimed your Genesis site?

Can you answer KAH’s question about Factoring?:

I am working on a problem. I have a couple’s Statement of Financial Position and Annual Cash Flow Statement. From this info, how do I calculate discrectionary cash flow?

Commercial Finance Factoring