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Step 2: Investing and Financing Activities
The next step is analyzing the adjustment in non current asset and liability
asset which is then recording it to as investing and financing activities, or as
material if non-cash investing and financing activities. The adjustments in
noncurrent assets include increase in land, increase in building and increase in
equipment. On the other hand the adjustments in liability accounts include
increase in bond payable, increase in ordinary shares and increase in retained
earnings.
Step 3: Net change in cash
Last but not least, comparing the net change in cash and cash flow statement
with the reported cash accounts on the balance sheet in order to make sure the
amounts agree.
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