Cash flow Statement: Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity Operating Activity: Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. Financing Activity: Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement. Investing Activity: Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant. 1. To identify: Method used in making cash flow statement.

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Answer 1

Question

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

3.

To determine

To identify: More successful year of the company.

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

5.

To determine

To identify: Supplemental cash flow information.

6.

To determine

To identify: Non cash financing activities for 2015.

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Answer 2

Question

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

3.

To determine

To identify: More successful year of the company.

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

5.

To determine

To identify: Supplemental cash flow information.

6.

To determine

To identify: Non cash financing activities for 2015.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

3.

To determine

To identify: More successful year of the company.

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

5.

To determine

To identify: Supplemental cash flow information.

6.

To determine

To identify: Non cash financing activities for 2015.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

3.

To determine

To identify: More successful year of the company.

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

5.

To determine

To identify: Supplemental cash flow information.

6.

To determine

To identify: Non cash financing activities for 2015.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

3.

To determine

To identify: More successful year of the company.

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

5.

To determine

To identify: Supplemental cash flow information.

6.

To determine

To identify: Non cash financing activities for 2015.

Answer 6

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

Answer 7

Chapter 12, Problem 5BTN

To determine

Cash flow Statement:

Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the

company. It is divided into three parts operating activities, investing activity, and financial activity

Operating Activity:

Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity.

Financing Activity:

Financing activity is the part of the cash flow statement. Financing activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in the financial statement.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.

1.

To identify: Method used in making cash flow statement.

Answer 8

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

Answer 9

2.

To determine

To identify: Largest item used to get the net cash flow from operating activities.

Answer 10

3.

To determine

To identify: More successful year of the company.

Answer 11

3.

To determine

To identify: More successful year of the company.

Answer 12

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

Answer 13

4.

To determine

To identify: Largest cash outflow in investing and financing activities.

Answer 14

5.

To determine

To identify: Supplemental cash flow information.

Answer 15

5.

To determine

To identify: Supplemental cash flow information.

Answer 16

6.

To determine

To identify: Non cash financing activities for 2015.

Answer 17

6.

To determine

To identify: Non cash financing activities for 2015.

Answer 18

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Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 12 - Prob. 1MCQ Ch. 12 - Prob. 2MCQ Ch. 12 - Prob. 3MCQ Ch. 12 - Prob. 4MCQ Ch. 12 - Prob. 5MCQ Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ

Solution Summary: The author explains how the M.B Company's cash flow statement is divided into three parts: operating activities, investing activity, and financial activity.

To identify: Largest item used to get the net cash flow from operating activities.

To identify: More successful year of the company.

To identify: Largest cash outflow in investing and financing activities.

To identify: Supplemental cash flow information.

To identify: Non cash financing activities for 2015.

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Chapter 12 Solutions