Concept explainers
Introduction:
Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities of a business i.e. operating, investing and financing.
To state:
If decrease in accounts payable will be recorded in the debit or credit column of spreadsheet’s cash flow statement.
(2)
Introduction:
Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities of a business such as operating, investing and financing. Cash inflows are recorded in the debit column and cash outflows are recorded in the credit column of the spreadsheet.
To state:
If payment of cash dividend will be recorded in the debit or credit column of spreadsheet’s cash flow statement.
(3)
Introduction:
Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities of a business such as operating, investing and financing. Cash inflows are recorded in the debit column and cash outflows are recorded in the credit column of the spreadsheet.
To state:
If increase in
(4)
Introduction:
Cash flow statements are the statements that determine the inflow and outflow of cash from three major activities in a business i.e. operating, investing and financing. Cash inflows are recorded in the debit column and cash outflows are recorded in the credit column of the spreadsheet.
To state:
If loss on sale of machinery will be recorded in the debit or credit column of spreadsheet’s cash flow statement.
(5)
Introduction:
Cash flow statements are the statements that determine the inflow and outflow of cash from three major activities of a business i.e. operating activities, investing activities and financing activities. Cash inflows are recorded in the debit column and cash outflows are recorded in the credit column of the spreadsheet.
To state:
If net income will be recorded in the debit or credit column of spreadsheet’s cash flow statement.
(6)
Introduction:
Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities that are carried out in a business i.e. operating activities, investing activities and financing activities. Cash inflows are recorded in the debit column and cash outflows are recorded in the credit column of the spreadsheet.
To state:
To indicate whether increase in interest payable will be recorded in the debit or credit column of spreadsheet’s cash flow statement.
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Managerial Accounting
- Spreadsheet and Statement of Cash Flows The following information was taken from Lambcrson Companys accounting records:arrow_forwardIn 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_forwardThe following shows excerpts from Camole Companys statement of cash flows and other financial records. Compute the following for the company: A. free cash flow B. cash flows to sales ratio C. cash flows to assets ratioarrow_forward
- 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 earningsarrow_forwardUse the following excerpts from Kirsten Companys Statement of Cash Flows and other financial records to determine the companys free cash flow.arrow_forward
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