How to go about Creating your Personal Cash Flow Statement
How do I create a personal balance sheet?
Different Types of Assets and Liabilities?
Personal assets are things of present or future value owned by an individual or household. Common examples of personal assets include: ... Investments – annuities, bonds, the cash value of life insurance policies, mutual funds, pensions, retirement plans, (IRA, 401(k), 403(b), etc.)
Cash flow formula:
Free Cash Flow = Net income + Depreciation/Amortization – Change in Working Capital – Capital Expenditure. Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital. Cash Flow Forecast = Beginning Cash + Projected Inflows – Projected Outflows = Ending Cash.
The cash flow statement follows an activity format and is divided into three sections: operating, investing and financing activities. Generally, the operating activities are reported first, followed by the investing and finally, the financing activities.
Analyzing the Seven Asset Classes
Capital assets are assets that are used in a company's business operations to generate revenue over the course of more than one year. They are recorded as an asset on the balance sheet and expensed over the useful life of the asset through a process called depreciation.
According to accounting definitions, a car can only be classified as an asset if its current value is greater than what you owe on it (car loan). The other reason a car can be classified as an asset is that anything you own that can be sold for cash counts as an asset.
Yet No Comments