At a price of $150, a cell phone company manufactures 200,000 units. At a price of $250, the company manufactures 400,000 units. What is the price elasticity of supply

I generally include the cash flow worksheet as part of my 13-column trial balance worksheet. I use the space in the far right side of the trial balance worksheet to analyze cash flows for all accounts. Calculate the difference between the beginning and ending balances for all accounts, and determine if the change reflects an increase or decrease in cash flow. Mark each account with and O for Operating cash flows, I for Investing cash flows and F for Financing cash flows.

Next lay out the general format of the statement on a piece of paper or spreadsheet. I generally identify the Investing and Financing activites first, and put them in the appropriate place. There should only be a few items that fall in these categories. Most of the accounts will be Operating activities. These include all Income and Expense accounts - the majority of accounts on the trial balance.

You may need to look at a few Ledger accounts. For instance, the company may have purchased Land and also sold Land in the same year. The purchases would be outflows of cash, and recorded as Debits in the Land account. Sales would be inflows of cash, and recorded as Credits in the Land account.

Analyzing cash flows is an important part of financial statement analysis. Here are some important things to look for:

1. There should be a net Increase in Cash from Operating Activities. If operations don't produce positive cash flows, the business will soon be in trouble. Without adequate operating cash flows, the company may have to dip into cash reserves or sell investments to meet regular payment of expenses.

2. If a company shows net Increase in Investing Cash Flows, it means they are selling off assets. That is generally not a good sign. I would also look to see if the company was posting losses and had negative cash flows from Operating activities. This might indicate that Management is selling off assets to pay bills. More analysis is needed in this case.