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. Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others. Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others. Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others. To Prepare: The statement of cash flows of Company R, using indirect method.

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem 21.31E

To determine

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.

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others.

To Prepare: The statement of cash flows of Company R, using indirect method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Ch13

None

9:25 xuaent question 4G YB 472 (5) Time Left: 0 A list of items that may affect an IFRS-based statement of cash flows prepared using the direct method follows. Assume that the transactions are for cash unless stated otherwise. Select the letter that is associated with the categorization on the statement of cash flows for each transaction. Item Transaction Categorization on the statement of cash flows Sale of land at a loss Gain on the sale of equipment Repurchasing own shares Receipt of interest Purchase of an investment that meets the criteria of a cash equivalent held to meet short-term cash commitments Depreciation expense Leased right-of-use equipment Payment of dividends Other comprehensive income Impairment loss on a patent. A-a cash receipt in the cash flows from operations section B-a cash outflow in the cash flows from operations section C-a cash receipt in the cash flows from investments section D-a cash outflow in the cash flows from investments section E-a cash receipt in…