Requirement 1
Cash and cash equivalent:
Cash and cash equivalent are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date. Cash and cash equivalents are an asset; hence it is shown in the balance sheet.
To determine: The amount of increase or decrease in cash and cash equivalents of Company B.
Requirement – 2
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.
To determine: The amount of net cash flow from operating activities, and largest reconciling item of recent year. Also determine whether there is increase or decrease in net cash flow from operating activity each year.
Requirement – 3
Statement of cash flows:
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.
To determine: The amount of net cash flow from investing activities, and largest investing item of recent year. Also determine whether there is positive or negative in net cash flow from investing activity each year.
Requirement – 4
Statement of cash flows:
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flow from financing activities: This section of cash flows statement provides information about the
To determine: The amount of net cash flow from financing activities, and largest financing item of recent year. Also determine whether negative financing activities are good sign or bad sing.
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Financial Accounting
- Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of thesearrow_forwardPreparing a Statement of Cash Flows Monon Cable Television Company reported the following financial statements for 20l9: Required: 1. Prepare a statement of cash flows using the indirect method to compute net cash flow from operating activities. 2. CONCEPTUAL CONNECTION Explain what has been responsible for the decrease in cash.arrow_forward
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