Question

Topic: (1) Mr. Bunky Bunkers, President & CEO of Bunkers, Inc. argues that it does not...

Topic: (1) Mr. Bunky Bunkers, President & CEO of Bunkers, Inc. argues that it does not matter which method (direct or indirect) is used in preparing a statement of cash flows. Afterwards, argues Mr. Bunkers, a statement of cash flows is a statement of cash flows. Do you agree with Mr. Bunkers? Explain in detail.

Topic #2: For the current year, Bunkers, Inc. decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change cause the amount of net cash flow from operating activities to be larger, smaller, or the same as if the indirect method had been used? Explain.

Homework Answers

Answer #1

Q (1) Topic (1)

I agree to the statement of Mr. Bunkers that a debt is debt to a great extent but a debt and theses details may vary quite the generally to lot based on the type of borrow that the organization makes. I believe that while borrowing a facility, an organization have to be aware about this type of loan it takes, the amount of loan required, the rate of interest, details of the security, etc. If the loan is a bank loan or financed by a bond payable or by borrowing from a local bank or in the form of a instalment, this organization has to be aware of the circumstances and details required. I have believed that an organization needs to be very much sensitive and serious about such cases so that they do not incur loss by somehow

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Topic: (1) Mr. Amampo Bunkers, President & CEO of Bunkers, Inc., a medium-sized manufacturing company who...
Topic: (1) Mr. Amampo Bunkers, President & CEO of Bunkers, Inc., a medium-sized manufacturing company who needs additional funds to purchase equipment for a new production facility argues that it does not matter whether the equipment is financed by a bond payable or by borrowing the money from a local bank in the form of an installment note. Afterward, argues Mr. Bunkers, debt is debt. Do you agree with Mr. Bunkers? Explain in detail why you agree (or disagree) with...
Topic #2: For the current year, Bunkers, Inc. decided to switch from the indirect method to...
Topic #2: For the current year, Bunkers, Inc. decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change cause the amount of net cash flow from operating activities to be larger, smaller, or the same as if the indirect method had been used? Explain.
Bunkers, Inc. and Blunders, Inc. are competitors in high-end retailing, and both were organized in October...
Bunkers, Inc. and Blunders, Inc. are competitors in high-end retailing, and both were organized in October 2017. Bunkers issued $100 par common stock, while Blunders issued $1 par common stock. Mr. Bunkers, president and CEO of Bunkers, inc. contends that his company is preferable as an investment since the par value of Bunkers' common stock is much, much higher than that of Blunders'. Do you agree with President Bunkers? Explain in detail.
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...
Direct or indirect? Most companies report operating cash flows using the ___________ method. Net income is...
Direct or indirect? Most companies report operating cash flows using the ___________ method. Net income is reconstructed on a cash basis when the ___________ method is used to report the net cash flows provided (used) by operating activities. The net cash amount provided by operating activities using the direct method is ____________ that computed using the indirect methods. The FASB recommends that the operating activities section of the statement of cash flows be reported using the ____________ method.
1) Which of the following is a method for reporting cash flows from operating activities that...
1) Which of the following is a method for reporting cash flows from operating activities that begins with net income and reconciles to cash flows from operating​ activities? A.accrual method B.direct method C.indirect method D.cashminus−basis method 2) Under the indirect method of preparing a statement of cash​ flows, cash disbursed for the acquisition of a capital asset​ is: A.added in the financing activities section B.added in the investing activities section C.subtracted in the operating activities section D.subtracted in the investing...
Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $413,900 Depreciation...
Cash Flows from Operating Activities—Indirect Method Staley Inc. reported the following data: Net income $413,900 Depreciation expense 53,800 Loss on disposal of equipment 28,300 Increase in accounts receivable 27,900 Increase in accounts payable 11,300 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating...
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?
Which of the following is not a use of cash? Repayment of bond payable Purchasing supplies...
Which of the following is not a use of cash? Repayment of bond payable Purchasing supplies for cash Paying dividends to stockholders Buying inventory on account Which of the following cash flows results from an operating activity? Paying dividends to stockholders Repaying note payable Purchasing equipment Receiving interest on investment The two approaches to reporting cash flows provided by operating activities are the direct and indirect methods. the basic and standard methods. the gross margin and contribution margin methods. the...
Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect...
Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A's income statement reveals depreciation expense of $10,000. Cash Flows From Operating Activities–Add to Net Income Cash Flows From Operating Activities–Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash Entity A prepares its Statement of Cash Flows in accordance with...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT