Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 12, Problem 9DQ
Summary Introduction

Concept Introduction:

The statement of cash flows is one of the four financial statements. This statement is prepared at the end of the accounting period to know the cash flow position of the business. The statement is prepared using the direct or indirect method. 

To indicate the reporting of the given transaction on the statement of cash flows.

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On June 3, a company borrows $200,000 cash by giving its bank a 90-day, interest-bearing note. On the statement of cash flows, where should this be reported?
a. On June 3, a company borrows $200,000 cash by giving its bank a 90-day, interest-bearing note. On the statement of cash flows, where should this be reported? b. If a company reports positive net income for the year, can it also show a net cash outflow from operating activities? Explain.. Is depreciation a source of cash flow? explain
On June 30, Year 3, Zachary Company’s total current assets were $504,000 and its total current liabilities were $271,000. On July 1, Year 3, Zachary issued a long-term note to a bank for $39,000 cash. Requireda. Compute Zachary’s working capital before and after issuing the note.b. Compute Zachary’s current ratio before and after issuing the note

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Loose Leaf for Financial Accounting: Information for Decisions

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