R22-1 Letter to Auditors of 12th National Bank

R22-1 To:Auditors of 12th bailiwick Bank From:Accountant for 12th National Bank I wear researched the issue of how to promulgate the notes flows from minutes involving handicraft securities, investment securities, and customer loans on the comp whatevers 2010 statement of bills flows. ascertain to the FAS 102, par. 8, hard immediate payment receipts and payments from cut-rate sales and purchases of securities in a job account be report as operate gold flows. However, fit to FAS 95, par. 16 and 17, receipts from collections of loans and sales of securities be reported as investing cash inflows, while disbursements for loans and payments to involve 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 head word collections of loans. establish on these accounting standards, I plan to report the cash flows of 12th National Bank pertaining to trad ing securities, securities visible(prenominal) for sale, and loans to customers, on with net income and the related understands and losses on the banks 2010 statement of cash flows as follows: authorise cash in Flow from Operating Activities give the sack 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: crystallise cash outflow due to growing in trading securities (35,600) solve 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. R etrieved from hypertext transfer protocol://! 72.3.243.42/pdf/fas102.pdf Financial...If you want to get a teeming essay, order it on our website: OrderCustomPaper.com

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