Fundamental Managerial Accounting Concepts
Fundamental Managerial Accounting Concepts
7th Edition
ISBN: 9780078025655
Author: Thomas P Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip R Olds
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 14, Problem 3ESB
To determine

The operating activities section of the cash flow statement

Introduction:

Statement of cash flows:

Statement of cash flows reports all the cash transactions that are responsible for inflow and outflow of cash, and the result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Operating activities: Cash flows from operating activity represent the net cash flows from the general operation of the business by comparing the cash receipt and cash payments. Examples: cash paid for salaries and cash received by selling goods.

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