FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
7th Edition
ISBN: 9781264017478
Author: Wild
Publisher: MCG
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Question
Chapter 12, Problem 7E
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.
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.
To identify: Cash flow from investing activities
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Students have asked these similar questions
Prepare a statement of cash flow for bramble inc using the direct method
unit iV question 18
Classifying 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.
Loss on sale of land.
Acquisition of equipment by the issuance of note payable.
Payment of long-term debt.
Acquisition of building by the issuance of common stock.
Increase in Salaries Payable.
The decrease in Merchandise Inventory.
Increase in Prepaid Expenses.
The decrease in Accrued Liabilities.
Cash sale of land.
Issuance of long-term note payable to borrow cash.
Depreciation Expense.
Purchase of treasury stock.
Issuance of…
Classifying 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…
Chapter 12 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 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. 10QSCh. 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 - Direct: Computing operating cash outflows P5 Refer...Ch. 12 - Prob. 27QSCh. 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. 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. 1GLPCh. 12 - Prob. 2GLPCh. 12 - Prob. 3GLPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 6BTNCh. 12 - Prob. 7BTN
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