Only answer comprehensive problem no. 4 TRUE OR FALSE: Read each sentence carefully and determine whether the statement isTrue or False. Write your answers in the space provided before the number.1. The Statement of Cash Flows shows the amount of cash received and used inthe business organized according to operating, investing, and financingactivities.2. Cash payment for bank loan are reported under cash flows from operatingactivities.3. If the company has no accounts receivable balance at the beginning and at theend of the year, then net sales reported in the Statement of ComprehensiveIncome will most likely be equal to the cash received from customers reported inthe SCF.4. Payments for acquisition of a merchandise inventory are reported as investingactivities.5. Statement of Cash Flows explains the observed difference in the cash balancefrom the beginning to the end of the period.6. Business activities are classified into operating, investing and funding activitiesin the SCF.7. Salary and utility payments are reported as operating activities.8. Noncash expenses such as depreciation and amortization are deducted from thenet income to arrive at the cash flows from operating activities.9. A negative cash flow from investing activities is bad indicator of the company'sability to generate cash.10. The bottom line of the Statement of Cash Flow is equivalent to the cash balancepresented in the SFP.COMPREHENSIVE PROBLEMJuana's sari-sari store had the following transactions during the year:a. Purchase of goods. Paid cash. 100,000b. Sale of goods. Received cash. 150,000c. Paid utilities 30,000d. Paid rent 10,000e. Sold equipment for cash 100,000f. Owner withdraws investment 10,0001.Compute for the net cash flow generated by/used in operating activities2.Using the given above, compute for the net cash flow generated by/used in investingactivities.Using the given above, compute for the net cash flow generated by/used in financingactivities.3.4.Using the given above, prepare a Cash Flow Statement using direct method.

Hi student Since there are multiple subparts, we will answer only first three subparts.

COMPREHENSIVE PROBLEM Juana's sari-sari store had the following transactions during the year: a. Purchase of goods. Paid cash. 100,000 b. Sale of goods. Received cash. 150,000 c. Paid utilities 30,000 d. Paid rent 10,000 e. Sold equipment for cash 100,000 f. Owner withdraws investment 10,000 1. Compute for the net cash flow generated by/used in operating activities 2. Using the given above, compute for the net cash flow generated by/used in investing activities. 3. Using the given above, compute for the net cash flow generated by/used in financing activities. 4. Using the given above, prepare a Cash Flow Statement using direct method.

COMPREHENSIVE PROBLEM Juana's sari-sari store had the following transactions during the year: a. Purchase of goods. Paid cash. 100,000 b. Sale of goods. Received cash. 150,000 c. Paid utilities 30,000 d. Paid rent 10,000 e. Sold equipment for cash 100,000 f. Owner withdraws investment 10,000 1. Compute for the net cash flow generated by/used in operating activities 2. Using the given above, compute for the net cash flow generated by/used in investing activities. 3. Using the given above, compute for the net cash flow generated by/used in financing activities. 4. Using the given above, prepare a Cash Flow Statement using direct method.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 12MCQ: Which of the following sentences regarding the statement of cash flows is false? The statement of...

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