Question

In generating cash flow from investing and financing activities, which of the following should you do?...

In generating cash flow from investing and financing activities, which of the following should you do?

Add increase in fixed asset

Subtract a decrease in fixed assets

Add an increase dividend payment

Add increase in long-term debt

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

Add : Increase in Long Term Debt (Ans)

Reason : Increase in fixed should be reduced (as it is outflow) while decrease in fixed assets should be added (as indicates inflow.) Also increase in dividend payment is an outflow and hence should be reduced. Opposite has been mentioned in ques.
However Increase in Long Term Debt is currectly mentioned as by issuing debt, company will get funds and thus it is an inflow. Hence it should be added in the cash flow statement.

answered by: anonymous
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. Which of the following is correct for the Cash Flow Statement(CFS) A .An increase in...
1. Which of the following is correct for the Cash Flow Statement(CFS) A .An increase in Accounts Receivable is a source of cash and should be in the CFS Investing Activities B. A payment of long term notes payable is a use of cash and should be in the CFS Financing Activities C. Deduct non cash expenditures from Net Income in the Operating Activities of the CFS D. A paid cash dividend is a use of cash and should be...
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...
Which of the following would NOT be reported as a cash flow from financing activities? A....
Which of the following would NOT be reported as a cash flow from financing activities? A. Issuance of stock B. Collection of a cash dividend C. Payment of a cash dividend D. Issuance of bonds
Can you identify Operating activities section, Investing activities section, Financing activities section, or Noncash activities note?...
Can you identify Operating activities section, Investing activities section, Financing activities section, or Noncash activities note? - A cash dividend received from an investment in another company’s stock - Payment of Dividends on Common Stock - The receipt of cash from the issuance of common stock - The purchase of a long -term asset like land or equipment (with cash) - Sale of a long- term asset for cash - The issuance and repayment [retirement] of bonds payable - The...
Which of the following statements is incorrect regarding the investing activities section of the statement of...
Which of the following statements is incorrect regarding the investing activities section of the statement of cash flows? Multiple Choice a. Investing activities deal with long-term liabilities (debt) and equity accounts. b. Increases in long-term asset balances suggest cash outflows to purchase assets. c. Decreases in long-term asset balances suggest cash inflows from selling assets. d. Investing activities involve cash purchases and cash disposals of long-term assets.
TRUE OR FALSE: 1. Major investing and financing activities that do not involve cash do not...
TRUE OR FALSE: 1. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. 2. The payment of interest on bonds is classified as a cash outflow from operating activities on the statement of cash flows. 3. A healthy company typically shows positive cash flows in the financing activities section of the statement of cash flows. 4. In general, the cash flow from operating activities is...
Q. 1 With respect to cash flow statement, classify the following activities into financing, investing and...
Q. 1 With respect to cash flow statement, classify the following activities into financing, investing and operating: 1. Buying goods 2. Purchase of long term investments 3. Loan taken from bank 4. Acquiring a new company 5. Cash paid for new equipment 6. Profit made during the period 7. Cash paid to supplier 8. Further equity issued 9. Bought a new factory building 10. Dividend paid.
Scenario Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities...
Scenario Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities 1. + + + 2. + + - 3. + - + 4. + - - 5. - + + 6. - + - 7. - - + 8. - - - Based on the chart above which company profile will be fit the cash flow pattern for scenario 2? A Successful, but actively relocating using financing from operations with cash from creditors and...
Identify the following as financing activities (F) or investing activities (I): (a) Purchase of equipment (b)...
Identify the following as financing activities (F) or investing activities (I): (a) Purchase of equipment (b) Purchase of treasury stock (c) Reduction of long-term debt (d) Sale of building (e) Resale of treasury stock (f) Increase in short-term debt (g) Issuance of common stock (h) Purchase of land (i) Purchase of common stock of another firm (j) Payment of cash dividends (k) Gain on sale of land (l) Repayment of debt principal
Cash flow from assets is cash generated from 1)operating activities 2)investing activities 3)all of the activities....
Cash flow from assets is cash generated from 1)operating activities 2)investing activities 3)all of the activities. 4)financing activities 5)production activities
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT