Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement:i (Click the icon to view the items.)Identify each item as a(n):• Operating activity-addition to net income (O+) or subtraction from net income (0-)• Investing activity-cash inflow (1+) or cash outflow (1)• Financing activity-cash inflow (F+) or cash outflow (F-)Activity that i not used to prepare the indirect statement of cash flows (N)a. Increase in accounts payableMore infoa. Increase in accounts payableb. Payment of dividendsc. Decrease in accrued liabilitiesd. Issuance of common stocke. Gain on sale of buildingPrintf. Loss on sale of landg. Depreciation expenseh. Increase in merchandise inventoryi. Decrease in accounts receivablej. Purchase of equipmentDone

Cash flow statement means the statement which shows the cash inflow and outflow during the specified…

Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: (Click the icon to view the items.) Identify each item as a(n): Operating activity-addition to net income (O+) or subtraction from net income (O-) Investing activity-cash inflow (1+) or cash outflow (1-) Financing activity-cash inflow (F+) or cash outflow (F-) Activity that is not used to prepare the indirect statement of cash flows (N) a. Increase in accounts payable More info a. Increase in accounts payable b. Payment of dividends c. Decrease in accrued liabilities d. Issuance of common stock e. Gain on sale of building Print f. Loss on sale of land g. Depreciation expense h. Increase in merchandise inventory i. Decrease in accounts receivable j. Purchase of equipment Done - X

Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: (Click the icon to view the items.) Identify each item as a(n): Operating activity-addition to net income (O+) or subtraction from net income (O-) Investing activity-cash inflow (1+) or cash outflow (1-) Financing activity-cash inflow (F+) or cash outflow (F-) Activity that is not used to prepare the indirect statement of cash flows (N) a. Increase in accounts payable More info a. Increase in accounts payable b. Payment of dividends c. Decrease in accrued liabilities d. Issuance of common stock e. Gain on sale of building Print f. Loss on sale of land g. Depreciation expense h. Increase in merchandise inventory i. Decrease in accounts receivable j. Purchase of equipment Done - X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

what are the two methods to prepare cash flow statement? Discuss in detail how cash from operating activities is determined in both the methods. Describe the entire process
The statement of cash flows reports cash flows for: Group of answer choices a)Operating activities. B)Investing activities. c)Financing activities. d)All of the above e)None of the above
Define the 3 sections of the Cash flow Statement without copying straight from the text. - Cash from Operating Activities - Cash from Financing Activities - Cash from Investing Activities
What types of transactions are reported in the non-cash investing and financing activities section of the statement of cash flows?
please help me to check the answers
Complete each of the columns on the table below, indicating in which section each item would be reported on the statement of cash flows (operating, investing, or financing), the amount that would be reported, and whether the item would create an increase or decrease in cash. For item that affect more than one section of the statement, indicate all affected. Assume the indirect method of reporting cash flows from operating activities. Enter all amounts as positive numbers. The first item has been completed as an example. Item Statement Section (operating, financing, investing) Amount to Report +/- Effect on Cash Depreciation of $15,000 for the period Operating $15,000 Increase Issuance of common stock for $35,000 $ Increase in accounts payable of $7,000 $ Retirement of bonds at face value of $100,000 $ Purchase of long-term investments for $94,500 $ Dividends declared and paid of $8,300 $ Increase in Prepaid Rent of $4,500 $ Decrease in…
Net cash provided/used by operating activities can be determined using the __________ (cash, direct, indirect, non-cash, or T-account) method or the _________ (T-account, non-cash, direct, cash, or indirect) method. (Enter answers in alphabetical order.)
Please read through the questions carefully and enter answers carefully with the table provided
Answer only please. Answer all parts of question please.
Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification.using the capital letter only: . .Operating Activity • L.Investing Activity • F..Financing Activity • OL.Operating and Investing Activity • N.Noncash Transaction Effect on Cash Flows.using the capital letter only: • .Increase • D.Decrease N.No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.
3. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Declared and paid a cash dividend. Sold short-term trading securities at a gain. Retired fully depreciated equipment. Sold a machine at a loss. Purchased long-term available-for-sale securities. Decreased accounts receivable. Purchased 90-day Treasury bill. Incurred a net loss. Declared and issued a stock dividend. Sold treasury stock.
5. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.