NOVA CC - ACC 211: Connect for Financial and Managerial Accounting with PROCTORIO PLUS
9th Edition
ISBN: 9781265725976
Author: John Wild; Ken Shaw
Publisher: McGraw-Hill Learning Solutions
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Question
Chapter 12, Problem 20E
To determine
Introduction:
Cash flow statement: The company prepares a statement of cash flow to calculate the net decrease or net increase in cash during the year. The three sections of the cash flow statement include financing activities, operating activities, and investing activities.
To prepare: The operating activity section of the cash flow statement using the direct method.
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Required: Prepare a statement of cash flows using indirect method for operating activities.
Using the direct method of preparing the statement of cash flows, to determine the cash effects of operating activities, which of the following needs to be adjusted?
a.
Equity as reported in the balance sheet
b.
Long-term assets and liabilities from the balance sheet
c.
Net income
d.
Reported revenues and expenses
Prepare the statement of cashflows using the direct method of presenting cashflows from operating activities
Chapter 12 Solutions
NOVA CC - ACC 211: Connect for Financial and Managerial Accounting with PROCTORIO PLUS
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Prob. 26QSCh. 12 - Prob. 27QSCh. 12 - Prob. 28QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1.1AACh. 12 - Prob. 1.2AACh. 12 - Prob. 1.3AACh. 12 - Prob. 1.4AACh. 12 - Prob. 2.1AACh. 12 - Prob. 2.2AACh. 12 - Prob. 2.3AACh. 12 - Prob. 3.1AACh. 12 - Prob. 3.2AACh. 12 - Prob. 3.3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 5BTN
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Similar questions
- Which of the following best describes the indirect method of preparing the operating activities section of the statement of cash flows? a. Net income reconciled from accrual basis to cash basis.b. A list of cash inflows and cash outflows from transactions involving the purchase and sale of longterm assets and current investments.c. A list of cash inflows and cash outflows from transactions related to revenue and expense activities.d. A list of cash inflows and cash outflows from transactions with lenders and stockholders.arrow_forwardPreparation of Cash flow statement operational section - indirect methodarrow_forwardIdentify the section of the statement of cash flows (a–d) where each of the following items would be reported.a. Operating activitiesb. Financing activitiesc. Investing activitiesd. Schedule of noncash financing and investing Increase in income taxes payable Where does this will be on the cash flow statement ?arrow_forward
- For NPOs, cashflows in the statement of cash flows are classified into Group of answer choices direct and indirect unrestricted, temporarily restricted, and permanently restricted program services and support activities operating, investing, and financing activitiesarrow_forwardIn an statement of cash flows what is included in the operating activities section? In the investment section? In the financial activities section? One or two paragraph minimum per section CH 15arrow_forwardWhen using the indirect method of preparing the statement of cash flows, the starting pointto determine net cash provided by operating activities isa. sales.b. net income.c. the beginning cash balance.d. the ending cash balance.arrow_forward
- Requirements: Prepare the Statement of Cash Flows in Direct and Indirect Methodarrow_forwardClassifying items on the indirect statement of cash flows The statement of cash flows categorizes like transactions for optimal reporting. Identify each item as a(n): • Operating activity—addition to net income (O+) or subtraction from net income (O–) • Investing activity—cash inflow (I+) or cash outflow (I–) • Financing activity—cash inflow (F+) or cash outflow (F–) • Non-cash investing and financing activity (NIF) • Activity that is not used to prepare the indirect statement of cash flows (N) The indirect method is used to report cash flows from operating activities. a. Loss on sale of land. b. Acquisition of equipment by issuance of note payable. c. Payment of long-term debt. d. Acquisition of building by issuance of common stock. e. Increase in Salaries Payable. f. Decrease in Merchandise Inventory. g. Increase in Prepaid Expenses. h. Decrease in Accrued Liabilities. i. Cash sale of land. j. Issuance of long-term note payable to borrow cash. k. Depreciation Expense. l. Purchase of…arrow_forwardPrepare a cash flow statement (indirect method) from the given information. please include explanation for each step/line itemarrow_forward
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