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Intermediate Accounting: Reporting...

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

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Financing and Investing Activities Not Involving Cash The statement of cash flows is normally a required basic financial statement for each period for which an earnings statement is presented. The statement should include a separate schedule listing the financing and investing activities not involving cash.

Required:

  1. 1. What are financing and investing activities not involving cash?
  2. 2. What are two types of financing and investing activities not involving cash?
  3. 3. Explain what effect, if any, each of the following seven items would have on the statement of cash flows.
    1. a. accounts receivable
    2. b. inventory
    3. c. depreciation
    4. d. deferred tax liability
    5. e. issuance of long-term debt in payment for a building
    6. f. payoff of current portion of debt
    7. g. sale of a fixed asset resulting in a loss or gain

1.

To determine

Explain financing and investing activities not involving cash.

Explanation

Financing activities: Financing activities includes cash inflows and outflows from issuance of common stock and debt, payment of debt and dividends.

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments...

2.

To determine

List the types of financing and investing activities not involving cash.

3.

To determine

Explain the effect in the cash flow statement for the following seven items.

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