R22-1 Letter to Auditors of 12th National Bank

R22-1 To:Auditors of 12th field Bank From:Accountant for 12th National Bank I curb researched the issue of how to cover the notes flows from proceedings involving handicraft securities, investment securities, and customer loans on the comp whatevers 2010 statement of bills flows. concord to the FAS 102, par. 8, hard hard bills receipts and payments from changes and purchases of securities in a job account be report as operating(a) cash flows. However, jibe to FAS 95, par. 16 and 17, receipts from collections of loans and sales of securities are reported as investing cash inflows, while disbursements for loans and payments to claim 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 leash 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 causes and losses on the banks 2010 statement of cash flows as follows: authorise bills Flow from Operating Activities gain 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: force out cash outflow due to growing in trading securities (35,600) crystalize on sale of trading securities (6,700) Unrealized holding gain on trading securities (1,200) Cash Flows From Investing Acti vities Proceeds from sale of securities ava! ilable 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 good essay, order it on our website: OrderCustomPaper.com

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