Should you swap out the fluid every few thousand miles, or wait until you've driven 30,000 miles or more? My owner's manual says I should change the transmission fluid every 30,000 miles, but my father swears it should be changed as often as engine oilevery 4000 to 5000 miles.
Direct labor can be logged into cash flow during the same month in which it is accrued. Material costs, on the other hand, are a little different. You need to include the material cost in cash flow using a time frame that allows you to convert the cost of raw material in cash flow into finished goods for sale. Therefore, if it requires 60 days to convert raw material to finished goods, and your payable period is 30 days after delivery, then enter the cost of goods under material in cash flow 30 days before sales are logged. Working capital can be determined from operating expenses.
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be. deducted from net income in converting the net income reported on the income statement to cash flows from operating activites.