Yazid Mammeri

The table is structured the same as the previous example, however, the cash flows are discounted to account for the time value of money. Moving onto our second example, we’ll use the discounted approach this time around, i.e. accounts for the fact that a dollar today is more valuable than a dollar received in the

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This is a difference of $360 (5,843 – 5,483) and since we did not take enough cash we need to reduce cash by $360. The check was used to pay for utilities and was recorded to utilities expense for $715. The bank deducted $25 for this service, so the automatic deposit was for $1,565. Bank