Managerial Accounting (4th Edition)
4th Edition
ISBN: 9780133428377
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 13, Problem 13.40ACT
Discussion & Analysis
A13-41 Discussion Questions
- 1. How do managers use the statement of
cash flows ? - 2. Describe at least four needs for cash within a business.
- 3. Define an “operating activity.” List two examples of an operating activity on the statement of cash flows that would increase cash. List two examples of an operating activity that would decrease cash.
- 4. Define an “investing activity.” List two examples of an investing activity on the statement of cash flows that would increase cash. List two examples of an investing activity that would decrease cash.
- 5. Define a “financing activity.” List two examples of a financing activity on the statement of cash flows that would increase cash. List two examples of a financing activity that would decrease cash.
- 6. Define a “noncash investing or financing” activity. Describe an activity that would need to be disclosed as a noncash Investing or financing activity.
- 7. Describe the difference between the direct and the indirect methods of preparing the operating section of the statement of cash flows.
- 8. Describe the process for reconciling net income to the cash basis. What items are added to net income? What items are subtracted from net income?
- 9. When preparing a statement of cash flows using the indirect method, what information is needed? What documents or statements would be used?
- 10. Summarize the process for preparing the operating section of the statement of cash flows when using the direct method.
- 11. Provide an example of an operating
cash inflow that could result from sustainability activities. Also provide an example of an operatingcash outflow that would support sustainability. - 12. Think of a company with which you are familiar. Describe an investing activity related to a company’s sustainability efforts that would be classified as a use of cash on a company’s statement of cash flows. Describe a financing activity related to a company’s sustainability efforts that would be classified as a use of cash on a company’s statement of cash flows.
Expert Solution & Answer
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Chapter 13 Solutions
Managerial Accounting (4th Edition)
Ch. 13 - Prob. 1QCCh. 13 - Prob. 2QCCh. 13 - Prob. 3QCCh. 13 - Prob. 4QCCh. 13 - Prob. 5QCCh. 13 - Prob. 6QCCh. 13 - Prob. 7QCCh. 13 - Prob. 8QCCh. 13 - Prob. 9QCCh. 13 - Prob. 10QC
Ch. 13 - Prob. 13.1SECh. 13 - Prob. 13.3SECh. 13 - Prob. 13.2SECh. 13 - Prob. 13.4SECh. 13 - Prob. 13.5SECh. 13 - Prob. 13.6SECh. 13 - Prob. 13.7SECh. 13 - Prob. 13.8SECh. 13 - Prob. 13.9SECh. 13 - Prob. 13.10SECh. 13 - Prob. 13.11SECh. 13 - Prob. 13.12AECh. 13 - Prob. 13.13AECh. 13 - Prob. 13.14AECh. 13 - Prob. 13.15AECh. 13 - Prob. 13.16AECh. 13 - Prob. 13.17AECh. 13 - Prob. 13.18AECh. 13 - Prob. 13.19AECh. 13 - Prob. 13.20AECh. 13 - Prob. 13.21AECh. 13 - Prob. 13.22BECh. 13 - Prob. 13.23BECh. 13 - Prob. 13.24BECh. 13 - Prob. 13.25BECh. 13 - Prob. 13.26BECh. 13 - Prob. 13.27BECh. 13 - Prob. 13.28BECh. 13 - Prob. 13.29BECh. 13 - Prob. 13.30BECh. 13 - Prob. 13.31BECh. 13 - Prob. 13.32APCh. 13 - Prob. 13.33APCh. 13 - Prob. 13.34APCh. 13 - Prob. 13.35APCh. 13 - Prob. 13.36BPCh. 13 - Prob. 13.37BPCh. 13 - Prob. 13.38BPCh. 13 - Prob. 13.39BPCh. 13 - Discussion Analysis A13-41 Discussion Questions...Ch. 13 - Prob. 13.41ACTCh. 13 - Ethics involved with statement of cash flows...Ch. 13 - Prob. 13.44ACT
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- Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? A. credit purchase of inventory B. sales of product, for cash C. cash paid for purchase of equipment D. salary payments to employeesarrow_forwardWhich of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipmentarrow_forwardThe following are excerpts from Hamburg 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
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