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Recent Cash Flow questions

Manal Elkhoshkhany I figured out the first part. I just need

For Business Tutor Manal ElkhoshkhanyI figured out the first part. I just need to figure out the free cash flow.Additional Data (from the screenshot) :1. Dividends declared and paid were $19,400.2. During the year equipment was sold for $9,800 cash. This equipment cost $17,800 originally and had a book value of $8,000 at the time of sale.3. All depreciation expense, $13,700, is in the operating expenses.4. All sales and purchases are on account.

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Manal Elkhoshkhany

Foundation classes for MBA

9,228 satisfied customers
We just had an offer accepted last night on our first condo.

Hello,We just had an offer accepted last night on our first condo.We're evaluating loan options and are a bit overwhelmed by which is the best option from a tax standpoint vs. cash flow vs total lifetime loan payments.I pasted link below to spreadsheet with 2 tabs, one for each loan option:5% down option20% down optionhttps://docs.google.com/spreadsheets/d/1uEj7WYOq2gcfHZx5EsXBrhVakqTYOzzXbMfARtbek4A/edit#gid=197228838I don't feel confident that I have the wisdom to sift through the info to make the smartest decision.Thanks,Ari

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Mark Taylor

Certified Public Accountant

Masters

826 satisfied customers
I have an S-corp that isn't making an income yet. I have

I have an S-corp that isn't making an income yet. I have purchased about $100k in equipment this year. How can I can deduct/depreciate this equipment? What are ways for me to increase the basis to achieve deductions, e.g. Section 179, etc. I can add more money to the corporation, and I can also bring in investors (i.e., my wife) as needed. I'm looking for legal ways to take advantage of the deduction potential.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,180 satisfied customers
I've been running a small detailing company time now. I

I've been running a small detailing company for some time now. I started it as a part time thing but it has grown to be my full time job. Since I started it as part time i really never looked into creating a separate business account and did not keep track of cash income or expenses. Im trying to get my books in order now and i need help. I have started using quickbooks Self Employed and it has begun to paint a financial picture for me. Most of the information I have is from my online banking so it does not show my cash flow. I'm confused and concerned as to how and if I should report that without having kept record of it. Also since I am self employed I'm having a hard time figuring out what counts as an expense. For example, I have a shop location so I pay monthly for my lease, but should I also include my house rent? Or is that something that should be accounted for in my budget from my net income?

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TaxRobin

Vocational, Technical or Trade School

20,916 satisfied customers
We are a technology startup with 4 shareholders. Since our

We are a technology startup with 4 shareholders. Since our balance sheet and P&L have become a mess over the years of R&D, as we start monetization, we'd like to start with a clean slate (a new company), so that we become more likely to receive venture investment.We don't just want to create a new company 100% owned by the current one because that will create double taxation in terms of potential capital gains.We can't pull money from current company and create a new one reflecting current shareholder structure either, because it will create complications since some of our shareholders are big and slow to make decision.The OldCo has $70K in the bank and we want to transfer $50K to the new one, keeping the payroll in the OldCo for the next few months.We want to solve this at the board level (two of the shareholders are at the board and we can take decision quickly). Our alternatives are:1) Create a service agreement between the two companies. OldCo pays NewCo a certain amount in regards ***** ***** its current customers. The problem, since NewCo will be cash-flow positive from day one (unlike OldCo) we will have tax liabilities. The question is, how long can we defer those taxable profits.2) OldCo gets a small percentage in the NewCo for its investment, the rest of the company has the same shareholder structure as the current one. The question how small that percentage can be so that the double taxation impact is minimized.3) OldCo gives NewCo a very flexible convertible note (e.g. converts in the next 200 years) The question is, is this feasible.Please advise regarding the three alternatives listed above, or if you have any other alternative approaches you may recommend.

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PDtax

Owner

Master's Degree

6,850 satisfied customers
Trying to figure out how shares affect cashflow.. If an

Hello,Trying to figure out how shares affect cashflow..If an owner sells his shares at book value to a new owner for cash, does the total cash flow go up, down, stay the same, or is it hard to tell with only that information?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,180 satisfied customers
Soon to inherit, and also soon to sell, I'm thinking of

Hello. Soon to inherit, and also soon to sell, I'm thinking of getting into the rental property business. I feel I could start off with three single family homes:1. My father's primary house in Northern Virginia (has $250k remaining on 30yr mortgage)2. My father's second house in Myrtle Beach, SC (no mortgage, all paid off)3. My own house in Northern MD, which I am currently fixing to sell (has $85K remaining on 15yr mortgage)Recent property appraisals, mortgage payment, and average rent are as follows:1. NoVA house (4 bed, 2 full/ 2 half bath, 3000sqft): $360K, $1850, $2000-$24002. SC house (3 bed, 3 full/ 1 half bath, 2000sqft): $200K, 0$, $1000-$12003. My MD house (4 bed, 3 full bath, 2400sqft): $215K, $1150, $1200-$1600My gross income is $95K, I have excellent credit rating, and my spouse and I are comfortable managing people and can do up to "intermediate" level renovation type work/repairs/etc.I would also need to buy another house for my family to live in. Currently looking at needing 85% financing for new primary residence (since I wouldn't be able to use the equity in my current home towards a significant down payment).I was thinking an LLC could be formed to manage these properties, use income to pay off properties, and ensure financial security when I retire 30 years from now.Good idea? How could I pay/ leverage equity/ afford?Thanks!!

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PDtax

Owner

Master's Degree

6,850 satisfied customers
My small business has shown a profit years but all the money

my small business has shown a profit for several years but all the money is used to repay loans. However the retained earnings account keep growing. Is there a way to show the use of profits for debt repayment

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Emilee Weaver

Controller

Masters of Professional Accounting

32 satisfied customers
We have been experiencing a lot of inventory fluctuation

We have been experiencing a lot of inventory fluctuation with commodity markets going up and down. We have had large losses that did not effect cash flow. wondering if the inventory fluctuatio account in cogs is a cash expense/revenue

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Rakhi Vasavada

Financial / Legal Advisor

Bachelor's Degree

3,950 satisfied customers
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