An entity uses the direct method toprepare its statement of cashflows.The net cash provided by (used in)operating activities*The company had the following cash flows during 2002Cash receipt from issuance of ordinary sharesCash receipts from custormersCash receipts from dividends on long-term investmentsCash receipts from repayment of loan made to another entityCash payments for wages and other operating expensesCash payment far insuranceCash payments for dividendsCash payment for taxesCash payment to purchase land400,000200,00030,000220,000120,00010,00020,00040,00080,000

A Cash Flow Statement is a statement showing inflows and outflows of cash during a particular…

Answered: An entity uses the direct method to…

An entity uses the direct method to prepare its statement of cashflows. The net cash provided by (used in) operating activities *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An entity uses the direct method to
prepare its statement of cashflows.
The net cash provided by (used in)
operating activities*
The company had the following cash flows during 2002
Cash receipt from issuance of ordinary shares
Cash receipts from custormers
Cash receipts from dividends on long-term investments
Cash receipts from repayment of loan made to another entity
Cash payments for wages and other operating expenses
Cash payment far insurance
Cash payments for dividends
Cash payment for taxes
Cash payment to purchase land
400,000
200,000
30,000
220,000
120,000
10,000
20,000
40,000
80,000

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