(a)
Introduction:
Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.
To indicate:
Whether the
(b)
Introduction:
Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.
To indicate:
Whether the inventories increased (I) or Decreased (D), using the given cash flow statement.
(c)
Introduction:
Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.
To indicate:
Whether the Accounts payable increased (I) or Decreased (D), using the given cash flow statement.
(d)
Introduction:
Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.
To indicate:
Whether the Accrued liabilities increased (I) or Decreased (D), using the given cash flow statement.
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Managerial Accounting - With Access
- In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchasedarrow_forwardAnalyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above. Required: Indicate whether each of the changes above produces a cash increase, a cash decrease, or is a noncash activity.arrow_forwardClassification 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 earningsarrow_forward
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