An entity uses the direct method toprepare its statement of cashflows.The net cash provided by (used in) allactivities *The company had the following cash flows during 2002Cash receipt from issuance of ordinary sharesCash receipts from customersCash receipts from dividends on long-term investmentsCash receipts from repayment of loan made to another entityCash payments for wages and other operating expensesCash payment for insuranceCash payments for dividendsCash payment for taxesCash payment to purchase land400,000200,00030,000220,000120,00010,00020,00040,00080,000Your answer

Net Cashflows provided by all activities= Cashflows from operating activities +/- Cashflows from…

Answered: The net cash provided by (used in) all…

Business

Accounting

The net cash provided by (used in) all activities

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 3C

See similar textbooks

Related questions

Q: _______ It illustrates how operating, investing, and financing activities affect cash.

A: Operating activities: Operating activities are those business activities that are related to its day…

Q: Compute the net cash provided (used) by investing activities. (S

A: A Cash Flow Statement depicts the movement of cash flow over a period. It has 3 major components -…

Q: Determine the balance for Net cash provided by operating activities. Net cash provided by operating…

A: Cash Flow Statement: A cash flow statement is a financial report with information on the sources of…

Q: What is the net cash provided by financing activities?

A: Introduction: Statement of cash flows: All cash in and out flows are recorded in statement of cash…

Q: Describe the types of assetsthat are typically included under the heading “cash and cash…

A: Cash and cash equivalents include liquid assets such as time deposits, certificate of deposits, high…

Q: WHAT IS THE NET CASH PROVIDED BY FINANCING ACTIVITIES?

A: Cash flows from financing activities shows all cash inflows and cash outflows from the sources and…

Q: Identify and briefly describe the three categories of cash flows reported in the statement of cash…

A: Cash flow statement is the statement which shows inflows and outflows of cash and cash equivalents…

Q: What are the three major types of activities classified on a statement of cash flows? Give an…

A: Cash flow statement Cash flow statement shows the summary of all inflows and outflows of cash in a…

Q: . What is the net cash provided by financing activities? b. What is the net cash used in investing…

A: Solution Concept Cash flow statement comprises of three components -cash flow from…

Q: Discuss the main activities which generate cash and to which cash is paid

A: The cash flow statement is prepared to record the cash inflow or outflow from the business under…

Q: Cash generated from operations is reflected in the

A: 1. While preparing a cash flow statement we have to calculate Cash flow from operating activities.…

Q: Describe Cash outflows from investing activities that includes cash paid.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: compute cash flows from operating activities:

Q: How much should be reported as cash inflows from operating activities?

A: Operating activity refers to the normal business activity of a company in which transaction like…

Q: Describe Financing cash inflows that includes cash received.

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: operating activities

A: Operating activities include sales and changes in working capital. investing activities include…

Q: Classify following cash flows as operating, investing, or financing activities. Cash paid for…

A: Statement of cash flows Statement of cash flow is a financial statement that shows the cash and cash…

Q: Determine cash flow and other financial effects a. Cash collection schedule

A: Budgeted cash collection is the expected cash is to be collected in a particular month for the…

Q: Cash generated from operating activities may be computed and reported using:

A: Operating activities include the cash inflows and the cash outflows from the regular and recurring…

Q: Please make the statement of cash flows

A: Cash flows statement is one of the financial statement of business, which shows all cash inflows and…

Q: Cash flows are grouped in the statement of cash flows into the following major categories: Choose…

A: The inflow of cash which means the receipts and the outflow which are the costs or expenses of the…

Q: What is the difference between net cash provided by operating activities and free cash flow?

Q: what will be Net Cash Generated from Operating Activity

A: Cash flows from operating activities is an important element of cash flows statement, which shows…

Q: How do you calculate Cash from operating activities?

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: a. What is the net cash provided by operating activities? b. What is the net cash provided by…

A: Cash flows from operating activities, investing activities and financing activities are important…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect method of cash flow statement we add back amortization expense to net income in…

Q: Determine cash flows from operating activities by the direct method.

A: “As it asked here to find out the cash flows from operating activities by the direct method without…

Q: When using the indirect method of determining net cash flows from operating activities, how are…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Compute the net cash provided by operating activities.

A: Cash flows from operating activities refer to the inflow and outflow of cash related to business…

Q: Cash flows are grouped in the statement of cash flows into the following major categories: Choose…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The statement of cash flows reports on what major activities?

A: Statment of Cash Flows: Statement of cash flows is one of the main financial statements which…

Q: Explain the purpose of the Statement of Cash Flows

A: The primary purpose Of the statement Of cash flows is to provide information about cash receipts,…

Q: statement of cash flows

A: The statement of cash flows records all the sources and use of the cash in the business during a…

Q: Net cash flows from operating ac laws from Investing Activities

A: Statement of Cash…

Q: Prepare a basic statement of cash flows.

A: Statement of Cash flows is the part of financial statements that shows the cash generated and spent…

Q: FINANCING ACTIVITIES How much is the net cash provided by financing activities?

A: Cash flows from financing activities is an important section of cash flow statement, which shows all…

Q: Report cash flows from financing activities.

A: The cash flow statement is prepared by the company to calculate the net amount of increase or…

Q: net cash provided by financing activities

A: Net cash provided by financing activities include difference of cash received and paid in respects…

Q: Which of the following is a cash inflow from financing activities? Receipt from collections on notes…

A: The cash flow statement is prepared to find the net cash inflow or outflow from the business.

Q: Define Net cash provided by operating activities

A: Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in…

Concept explainers

Short-term Financing

Short-term financing occurs when a company finds an external funding source to run the business for a short period of time that takes less than a year to pay off. Working capital financing is another term for short-term financing. When a company's cash flow from operations is uneven, short-term financing is used to generate cash flow and cover operating expenses. Short-term finance is typically used by businesses to fund inventory, accounts receivable, and loans.

Question

An entity uses the direct method to
prepare its statement of cashflows.
The net cash provided by (used in) all
activities *
The company had the following cash flows during 2002
Cash receipt from issuance of ordinary shares
Cash receipts from customers
Cash receipts from dividends on long-term investments
Cash receipts from repayment of loan made to another entity
Cash payments for wages and other operating expenses
Cash payment for insurance
Cash payments for dividends
Cash payment for taxes
Cash payment to purchase land
400,000
200,000
30,000
220,000
120,000
10,000
20,000
40,000
80,000
Your answer

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Cash dividends declared out of current earnings were distributed to an investor. How will the investors investment account be affected by those dividends under each of the following accounting methods?
Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
Use the following excerpts from Nutmeg Companys financial records to determine net cash flows from operating activities and net cash flows from investing activities.