Question

Why is the Statement of Cash Flows so important? Why do outside parties rely on it...

Why is the Statement of Cash Flows so important? Why do outside parties rely on it so much?

On the cash flow statement cash inflows are shown as __________ while cash outflows are shown as _________.

What do you need to prepare a cash flow statement?

Describe the three cash flow categories, give the general account rule for what types of accounts go in each category, and provide example line items for both cash inflows and cash outflows.

Operating Activities

How do you determine cash flow provided by (used in) operating activities using the indirect method?

How is cash flow provided by (used in) operating activities determined using the direct method? How is this different from the indirect method?

Investing Activities

How do you determine cash flow provided by (used in) investing activities?

Financing Activities

How do you determine cash flow provided by (used in) financing activities?

What is the formula to calculate change in cash flow?

What are the steps to prepare the cash flow statement?

Explain the difference between the direct and indirect method.

What are some considerations that should be made when evaluating cash flow?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.) Why is the statement of cash flows a useful document? 2.) Define the following terms...
1.) Why is the statement of cash flows a useful document? 2.) Define the following terms as they relate to the statement of cash flows: cash flows: cash, operating activities, investing activities, and financing activities. 3.) How does the direct method differ from the indirect method?
Certified auto parts company used the indirect method to prepare its statement of cash flows. Refer...
Certified auto parts company used the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: Net cas provided by operating activities: $106000 Net cash used for investing activities: $(118500) Net cas provided by financing activities: $20000 If the cash balance at the begging of the year was $13200, what is the ending cash balance?
The only part that differs in a statement of cash flows using the direct method rather...
The only part that differs in a statement of cash flows using the direct method rather than the indirect method is the: Question options: investing activities section. operating activities section. financing activities section. none of the above.
1）In the statement of cash flows, in which section is the cash payment of salaries reported?...
1）In the statement of cash flows, in which section is the cash payment of salaries reported? A. Operating Activities B. Investing Activities C. Financing Activities D. Schedule of Noncash Transactions E. None of the above 2）In the statement of cash flows, in which section is the cash payment of dividends reported? A. Operating Activities B. Investing Activities C. Financing Activities 3）In the statement of cash flows, in which section is the cash receipt from the issuance of common stock reported?...
If a company is using the indirect method to prepare the statement of cash flows, identify...
If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported: Multiple Choice An increase in cash flows from operating activities An increase in cash flows from investing activities A decrease in cash flows from operating activities A decrease in cash flows from investing activities An increase in cash flows from financing activities
Which of the following methods of reporting cash flows provided by operating activities does the Financial...
Which of the following methods of reporting cash flows provided by operating activities does the Financial Accounting Standards Board recommend? A. The indirect method B. The direct method C. Either the indirect method or the direct method D. Neither the indirect method not the direct method In preparing cash flows provided by operating activities using the indirect method, which of the following is not deducted from net income? A. Decreases in current liability balances B. Increases in current asset balances...
In preparation for developing its statement of cash flows for the year ended December 31, 2018,...
In preparation for developing its statement of cash flows for the year ended December 31, 2018, Rapid Pac, Inc., collected the following information: ($ in millions) Fair value of shares issued in a stock dividend $ 60.0 Payment for the early extinguishment of long-term bonds (book value: $79.0 million) 84.0 Proceeds from the sale of treasury stock (cost: $15.0million) 20.0 Gain on sale of land 2.4 Proceeds from sale of land 7.2 Purchase of Microsoft common stock 138.0 Declaration of...
1. The purchase of treasury stock will have what impact on the statement of cash flows?...
1. The purchase of treasury stock will have what impact on the statement of cash flows? A. Cash inflow from financing activities B. Cash outflow from financing activities C. Cash inflow from investing activities D. Cash outflow from investing activities 2. Cash inflows or outflows from investing activities would involve all of the following except: A. The proceeds from the sale of equipment B. The purchase of buildings C. The receipt of interest income on short-term investments D. The purchase...
True or False 1. The approach to preparing the cash flow statement relies on the following...
True or False 1. The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets). 2. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. 3. In the decline phase, the company continues to enjoy positive operating cash flows but stops spending cash on investing...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $222,710 $208,610 Accounts receivable (net) 80,680 74,920 Inventories 227,760 221,840 Investments 0 85,940 Land 116,820 0 Equipment 251,290 196,120 Accumulated depreciation—equipment (58,830) (52,890) Total assets $840,430 $734,540 Liabilities and Stockholders' Equity Accounts payable $152,120 $144,700 Accrued expenses payable 15,130 19,100 Dividends payable 8,400 6,610 Common stock, $10 par 45,380 35,990...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT