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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 21, Problem 1GI
Textbook Problem

What information does the statement of cash flows help users assess?

Expert Solution
To determine

Explain the information that helps the users to assess from the cash flow statement.

Explanation of Solution

Statement of cash flows: Cash flow 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.

The following are the information that helps the users to assess from the cash flow statement:

  • Statement of cash flows helps the user to know the company’s ability towards generation of positive future net cash flows.
  • Statement of cash flows is used to find whether companies are in need of any external financing for their operations.
  • Statement of cash flows helps the user to know the company’s ability towards payment of dividends and fulfill the obligations.
  • Statement of cash flows helps in examining the reasons for the differences that occur between company’s net income and related cash receipts and payments.
  • Statement of cash flows is used in assessing the cash and non-cash aspects of the financing and investing activities that occur in the accounting period.

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Chapter 21 Solutions

Intermediate Accounting: Reporting And Analysis
Show all chapter solutions
Ch. 21 - List the five operating cash outflows that a...Ch. 21 - What is the visual inspection method? List the...Ch. 21 - Briefly describe the spreadsheet method of...Ch. 21 - Dunn Company recognized a 5,000 unrealized holding...Ch. 21 - Jordan Company recognized a 5,000 unrealized...Ch. 21 - Indicate how a company computes the amount of...Ch. 21 - What adjustment is required to the operating...Ch. 21 - (Appendix 21.1) Define the direct method of...Ch. 21 - (Appendix 21.1) Briefly describe how to determine...Ch. 21 - Which of the following would be considered a cash...Ch. 21 - In a statement of cash flows (indirect method),...Ch. 21 - The net cash provided by operating activities in...Ch. 21 - The retirement of long-term debt by the issuance...Ch. 21 - Saratoga Company reports sales of 200,000 and...Ch. 21 - Selected information from Brook Corporations...Ch. 21 - The net income for Mountain Corporation was...Ch. 21 - Smith Company provided the following information...Ch. 21 - Which of the following need not be disclosed in a...Ch. 21 - The following information was taken from Oregon...Ch. 21 - Identify these cash flows as cither investing...Ch. 21 - Given the following information, convert Lark...Ch. 21 - Given the following information, convert Cardinal...Ch. 21 - Given the following information, convert Robin...Ch. 21 - In the current year, Harrisburg Corporation had...Ch. 21 - Tifton Co. had the following cash transactions...Ch. 21 - Tifton Co. had the following cash transactions...Ch. 21 - Trenton Corporation has the following items....Ch. 21 - Lime Corporation participated in a simultaneous...Ch. 21 - In the current year, Harrisburg Corporation...Ch. 21 - Providence Company sold equipment for 25,000 cash....Ch. 21 - Annapolis Corporation paid 270,000 to retire bonds...Ch. 21 - Given the following information, compute Lemon...Ch. 21 - Given the following information, compute Peach...Ch. 21 - Ratio Analysis Following are totals from selected...Ch. 21 - Visual Inspection Gordon Companys accounting...Ch. 21 - Visual Inspection Noble Companys accounting...Ch. 21 - Balance Sheet The following beginning balance...Ch. 21 - Classification of Cash Flows The following are...Ch. 21 - Net Cash Flow from Operating Activities Hyde...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Erroneous Statement of Cash Flows Andell Companys...Ch. 21 - Partially Completed Spreadsheet Hanks Company has...Ch. 21 - Spreadsheet The following 2019 information is...Ch. 21 - Spreadsheet and Statement The following 2019...Ch. 21 - Fixed Asset Transactions The following is an...Ch. 21 - Retirement of Debt Moore Company is preparing its...Ch. 21 - Interest and Income Taxes Staggs Company has...Ch. 21 - Investments On October 4, 2019, Collins Company...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Investing Activities and Depreciable Assets...Ch. 21 - Spreadsheet and Statement The following 2019...Ch. 21 - (Appendix 21.1) Operating Cash Flows The following...Ch. 21 - (Appendix 21.1) Statement of Cash Flows The...Ch. 21 - (Appendix 21.1) Visual Inspection The following...Ch. 21 - Direct and Indirect Methods Dauve Company reported...Ch. 21 - Classification of Cash Flows A company's statement...Ch. 21 - Net Cash Flow from Operating Activities Verna...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Partially Completed Spreadsheet The following...Ch. 21 - Spreadsheet and Statement of Cash Flows The...Ch. 21 - Spreadsheet and Statement of Cash Flows The...Ch. 21 - Spreadsheet from Trial Balance Heinz Companys post...Ch. 21 - Prepare Ending Balance Sheet On December 31, 2019,...Ch. 21 - Infrequent Transactions The following transactions...Ch. 21 - Erroneous Statement of Cash Flows Ryan Companys...Ch. 21 - Comprehensive Angel Company has prepared its...Ch. 21 - Comprehensive The following are Farrell...Ch. 21 - (Appendix 21.1) Operating Cash Flows Refer to the...Ch. 21 - (Appendix 21.1) Statement of Cash Flows The...Ch. 21 - Comprehensive The following are Farrell...Ch. 21 - (Appendix 21.1) Comprehensive The following are...Ch. 21 - Spreadsheet from Trial Balance Heinz Companys...Ch. 21 - Financial Statement Interrelationships Prepare an...Ch. 21 - Statement of Cash Flows A friend of yours is...Ch. 21 - Cash Flow Activities A companys statement of cash...Ch. 21 - Operating, Investing, and Financing Activities The...Ch. 21 - Operating Cash Flows There are two methods to...Ch. 21 - Spreadsheet Method The spreadsheet method is...Ch. 21 - Financing and Investing Activities Not Involving...Ch. 21 - Inflows and Outflows Alfred Engineering Company is...Ch. 21 - Ethics and Cash Flows You are the accountant for...

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