FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Chapter 9, Problem 27Q
To determine
Statement of
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities
Indirect method: Under this method, the following amounts are to be adjusted from the Net Incometo calculate the net cash provided from operating activities.
To explain: the reporting of the transactions related to plant assets and intangibles in the statement of cash flows under the indirect method.
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On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
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Explain how depreciation expense is reported in the Statement of Cash Flows using the indirect method. Why is it reported this way?
Explain why depreciation, depletion, and amortization cost in the operational activities part of the statement of cash flows are added to net income when using the indirect method.
Chapter 9 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - In the fourth year of an assets 5-year useful...
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - Prob. 19QCh. 9 - Prob. 20QCh. 9 - Prob. 22QCh. 9 - Give an example of an industry that would be...Ch. 9 - Prob. 24QCh. 9 - Prob. 25QCh. 9 - Prob. 26QCh. 9 - Prob. 27QCh. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Prob. 9.7BECh. 9 - Prob. 9.13BECh. 9 - Prob. 9.14BECh. 9 - Prob. 9.1DIECh. 9 - Prob. 9.2bDIECh. 9 - Prob. 9.3DIECh. 9 - Match the statement with the term most directly...Ch. 9 - Prob. 9.2ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.1APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.2EYCTCh. 9 - Prob. 9.3EYCTCh. 9 - Prob. 9.6EYCTCh. 9 - Prob. 9.7EYCTCh. 9 - Prob. 9.8EYCTCh. 9 - Prob. 9.10EYCTCh. 9 - CONSIDERING PEOPLE, PLANET, AND PROFIT The March...Ch. 9 - Prob. 9.1IECh. 9 - Prob. 9.2IECh. 9 - Prob. 9.3IECh. 9 - Prob. 9.4IE
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- In a statement of cash flows, receipts from sales of property, plant, and equipment generally are classified as: a. investing activities b. selling activities c. operating activities d. financing activitiesarrow_forwardExplain why, when utilizing the indirect method, depreciation expenditure, depletion expense, and amortization expense are added to net income in the operational activities part of the statement of cash flows rather of being included in the net income.arrow_forwardGiven a set of data, how do I calculate the amount of cash received from the sale of plant assets?What is the formula to calculate cash received from the sale of plant assets?arrow_forward
- Use the following information to determine cash flows from operating activities using the indirect method.arrow_forwardExplain why depreciation, depletion, and amortization cost are added to net income in the operating activities part of the statement of cash flows when using the indirect method in the operating activities section of the statement of cash flows.arrow_forwardFor purposes of calculating cash given by operations, the indirect approach subtracts depreciation expenditure from net income before calculating cash provided by operations.arrow_forward
- When using the indirect method to determine operating cash flows, how is depreciation expense recorded on the Statement of Cash Flows?arrow_forwardExplain why depreciation expenditure, depletion expense, and amortization expense are added to net income in the operating activities part of the statement of cash flows when the indirect method is used.arrow_forwardDetermine cash flows from operating activities by the indirect method.arrow_forward
- Question Content Area Which of the following should be deducted from net income in computing the net cash flows from operating activities using the indirect method? a. a loss on the sale of equipment b. depreciation expense c. dividends declared and paid d. gain on sale of landarrow_forwardDistinguish between the direct method and the indirect method for reporting the results of operating activities in the statement of cash flows.arrow_forwardWhich of the following best describes the indirect method of preparing the operating activities section of the statement of cash flows? a. Net income reconciled from accrual basis to cash basis.b. A list of cash inflows and cash outflows from transactions involving the purchase and sale of longterm assets and current investments.c. A list of cash inflows and cash outflows from transactions related to revenue and expense activities.d. A list of cash inflows and cash outflows from transactions with lenders and stockholders.arrow_forward
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