Concept explainers
(a)
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.
Type of activities reported in statement of cash flows:
Figure (1)
To Indicate: Statement presentation of transactions.
Issue of bonds payable for cash amounted to $200,000 must be reported in the Financing activities in the statement of cash flow.
(b)
To Indicate: Statement presentation of transactions.
Purchase of equipment for cash amounted to $180,000 must be reported in the Investing activities in the statement of cash flow.
(c)
To Indicate: Statement presentation of transactions.
Sale of land for cash amounted to $20,000 must be reported in the Investing activities in the statement of cash flow.
(d)
To Indicate: Statement presentation of transactions.
Payment of cash dividend amounted to $50,000 must be reported in the Financing activities in the statement of cash flow.
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FINANCIAL ACCOUNTING>IC<
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