Question

how is the cash payment of interest computed in the cash flows statement?

how is the cash payment of interest computed in the cash flows statement?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: If there is only 1 year balance sheet given in question.

Calculation of interest paid =

Interest expense appear in the Income Statement.

+ Prepaid interest expense

- outstanding interest expense

If there are 2 year balance sheet given in question

Interest expense paid =

Interest expense appear in Income Statement

+ Increase in prepaid interest expense

- decrease in prepaid interest expense

+ Decrease in outstanding interest expense

- increase in outstanding interest expense

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
How is the cash payment of interest computed in the cash flows statement?
How is the cash payment of interest computed in the cash flows statement?
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?...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities NOT affecting cash A list of items that appear on the Cash Flows Statement appear below: Using the letters (A-D), indicate in which section(s) of the statement of cash flows (or accompanying schedule) the preceding items would most likely be classified       -       A.       B.      ...
Interest Expense is treated as an operating activity item in the Statement of Cash Flows while...
Interest Expense is treated as an operating activity item in the Statement of Cash Flows while it is listed as a financing activity item in the Income Statement. List the reasons why interest should be an operating or financing activity item and recommend your position on how interest should be listed (operating or financing).
How does the Statement of Cash Flows supplement the Statement of Financial Position?
How does the Statement of Cash Flows supplement the Statement of Financial Position?
In 200 words or more What is the relevance of the statement of cash flows? How...
In 200 words or more What is the relevance of the statement of cash flows? How are the balance sheet and income statement used to prepare the statement of cash flows? Give an example
) Identify how each of the following items is shown on the statement of cash flows....
) Identify how each of the following items is shown on the statement of cash flows. Identify each as operating (O), investing (I), financing (F), or non-cash investing and financing (N). Item (O), (I), (F), (N) Cash payment of dividend Cash paid for income tax expense Land received in exchange for issuance of common stock Item (O), (I), (F), (N) Cash payment of dividend Cash paid for income tax expense Land received in exchange for issuance of common stock 10)...
In what section of the statement of cash flows should the following items appear? Receipt of...
In what section of the statement of cash flows should the following items appear? Receipt of dividends Payment of dividends Interest Revenue Sale of PP&E Sale of Common Stock Loan cash to another business Exchange of PP&E for common stock Interest expense
In the statement of cash flows, in which section is the cash payment of income taxes...
In the statement of cash flows, in which section is the cash payment of income taxes reported? A. Operating Activities B. Investing Activities C. Financing Activities D. Schedule of Noncash Transactions E. None of the above On March 31, 2020, if the balance in Bonds Payable is $3,000,000 and the balance in Unamortized Premium on Bonds Payable (Premium on Bonds Payable) is $100,000, what is the amount for the carrying value of the bonds at March 31, 2020? A. 3,100,000...
The following chart is the Accounting Statement of Cashflows. Construct the financial statement of cash flows....
The following chart is the Accounting Statement of Cashflows. Construct the financial statement of cash flows. Assume taxes are $20 and all taxes are current. Interest expense is $5. Cash Flows from operating activities Net income $41 Add (subtract) items that affect net income and cash flow differently Depreciation $18 Gain on sale of plant assets (8) Increase in account receivable (13) Increase in Interest receivable (2) Decrease in Inventory 3 Increase in prepaid expenses (1) Increase in account payable...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT