Good Deal used the equipment for one month (June 1 through June 30) and had recorded one month’s depreciation of $20. This means the book value of the equipment is $1,080 (the original cost of $1,100 less the $20 of accumulated depreciation). On July 1, Good Deal sells the equipment for $900 in cash and …
The income statement includes non-cash items like depreciation and amortization, whereas the cash flow statement adjusts for these items to show actual cash flow. This section of the cash flow statement is crucial as it reflects the liquidity available from regular nonprofit activities, which is essential for daily Accounting for Churches functioning and planning. Now …
The key difference between the two is that a P/L report shows the profitability of a business over a period of time, while a cash flow statement shows the flow of cash over the same period. Together, these three sections provide a comprehensive view of the day-to-day financial activities of the organization. Depicted on a …
The Guide to Your Nonprofit Statement of Cash Flow Read More »
These adjustments are essential for stakeholders to understand the true cash position and its implications for the organization’s financial health and sustainability. For nonprofit organizations, the statement of cash flows holds particular significance. It not only showcases the cash positions resulting from critical fundraising activities and donations but also highlights how efficiently these funds are …
How To Prepare a Cash Flow Statement for Your Nonprofit Organization Read More »