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Intermediate Accounting: Reporting...
Solutions
Intermediate Accounting: Reporting...
Briefly describe the spreadsheet method of analyzing the information for a company’s statement of cash flows. (Do not list the steps in preparation.)
Explain the spreadsheet method in analyzing the information for a company’s statement of cash flow.
Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and 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 include cash inflows and outflows from business operations. Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments. Financing activities includes cash inflows and outflows from issuance of common stock and debt, payment of debt and dividends.
Worksheet:Â A worksheet is a spreadsheet used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization...
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