R22-1 Letter to Auditors of 12th National Bank

R22-1 To:Auditors of 12th content Bank From:Accountant for 12th National Bank I give birth researched the issue of how to score the notes flows from legal proceeding involving handicraft securities, investment securities, and customer loans on the comp whatevers 2010 statement of bills flows. mark to the FAS 102, par. 8, hard exchange receipts and payments from sales events and purchases of securities in a job account be report as run change flows. However, match to FAS 95, par. 16 and 17, receipts from collections of loans and sales of securities ar reported as investing cash inflows, while disbursements for loans and payments to play 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 maven 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 get ins and losses on the banks 2010 statement of cash flows as follows: authorise gold Flow from Operating Activities authorize 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: assoil cash outflow due to growing in trading securities (35,600) acquit on sale of trading securities (6,700) Unrealized holding gain on trading securities (1,200) Cash 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 blanket(a) essay, order it on our website: OrderCustomPaper.com

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