Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.
Cash flows from investing activities: Cash provided by or used in investing activities is a section of statement of cash flows. It includes the purchase or sale of equipment or land, or marketable securities, which is used for business operations.
Cash flows from investing activities |
Add: Proceeds from sale of fixed assets |
Sale of marketable securities / investments |
Interest received |
Dividend received |
Deduct: Purchase of fixed assets/long-lived assets |
Purchase of marketable securities |
Net cash provided from or used by investing activities |
Cash flows from financing activities: Cash provided by or used in financing activities is a section of statement of cash flows. It includes raising cash from long-term debt or payment of long-term debt, which is used for business operations.
Cash flows from financing activities |
Add: Issuance of common stock |
Proceeds from borrowings |
Proceeds from issuance of debt |
Deduct: Payment of dividend |
Repayment of debt |
Interest paid |
Redemption of debt |
Net cash provided from or used by financing activities |
To Compute: The amount of plant assets acquired by S Corporation during the year.
To Compute: The amount of payment made to notes payable by S Corporation during the year:
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Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
- The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It reported a net income of $100,000 for the year 2016.During the year 2016, the working capital accounts were changed as follows:Increase in accounts receivable: $22,000Increase in accounts payable: $18,600Increase in inventory: $14,800Decrease in non-trade notes payable: $30,000Increase in available for sale securities: $32,000The depreciation expense was $34,000 for the year 2016.Required: Compute net cash provided (used) by operating activities using the indirect method.arrow_forwardThe Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It reported a net income of $100,000 for the year 2016.During the year 2016, the working capital accounts were changed as follows:Increase in accounts receivable: $22,000Increase in accounts payable: $18,600Increase in inventory: $14,800Decrease in non-trade notes payable: $30,000Increase in available for sale securities: $32,000The depreciation expense was $34,000 for the year 2016.arrow_forwardCrane Hog Products Corp. provided the following financial information for the quarter ending June 30, 2017: Net income: $ 183,375 Depreciation and amortization: $ 61,786 Increase in receivables: $62,154 Increase in inventory: $ 50,650 Increase in accounts payable: $37,655 Decrease in other current assets: $27,450 What is this firm's cash flow from operating activities during this quarter? (If an amount reduces the cash flow then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Crane Hog Products Corp.Statement of Cash Flows (Partial) Operating Activities: $ Additions (sources of cash) Subtractions (uses of cash) Net cash operating activities $arrow_forward
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- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning