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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 2EB: In which section of the statement of cash flows would each of the following transactions be...

See similar textbooks

Related questions

Q: Using the following answer keys, you are to identify in which activity each of the transactions is…

A: Declared and issued a stock dividend : Since this transaction does not involve cash , this is a non…

Q: Refer to the information for Booth Manufacturing above.Required:1. Calculate the cash flows from…

A: Statement of cash flows forms a part of financial statements and is prepared with a view to…

Q: Which one of the following shows the sections of a cash flow statement correctly? Select one: a.…

A: Solution:- Introduction:- Cash flows denotes the net amount of cash that an entity receives and…

Q: What is the purpose of the statement of cash flows? Why would we want to convert accrual basis net…

A: Statement of Cash Flow - Statement of cash flow provides actual movement of cash during the…

Q: In a statement of cash flows prepared under IFRS, interest paid a. Must be classified as an…

Q: 2. Using the following answer keys, you are to identify in which activity each of the transactions…

A: Cash flows refer to the movement of cash into or out of a business or individual's financial…

Q: When preparing the operating section of the cash flow statement using the indirect method, which of…

A: Cash flow from operating activities (CFO) demonstrates the measure of cash an organization acquires…

Q: T/F: The statement of cash flows reports the cash inflows and outflows from operating, investing,…

A: Cash inflow means the amount of cash received by an entity during a period and cash outflow means…

Q: Refer to the information for Roberts Company above and on the previous page.Required:Prepare a…

A: The cash flow statement is a statement that shows the flow of cash and cash equivalents during the…

Q: Place the following items in the correct order as they would appear in the statement of cash flows.…

A: Cash flow statement is a statement which provides detail of all cash inflows and outflows of the…

Q: ne comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 2097, iš as…

A: The cash flow statement is prepared to record cash flow from various activities during the period.

Q: Identify the section of the statement of cash flows (a–d) where each of the following items would be…

A: Cash flow from operating activities: This section of the cash flow statement provides information…

Q: Match (by letter) the following items with the description or example that best fits. Each letter is…

Q: Define the 3 sections of the Cash flow Statement without copying straight from the text. - Cash from…

A: Cash flow statement has been divided in three parts :- (i) Cash flow from operating activities (ii)…

Q: Can you do 1) CASH FLOW FROM OPERATION ACTIVITIES 2)CASH FLOWS FROM FINANCING ACTIVITIES 3)CASH FLOW…

A: 1. Cash Flow from Operating activities (Indirect Method) Net Income 40,000 Adjustments:…

Q: Use ulate the cash flow from operating activities using the indirect method. AA. Statement of Cash…

A: (a) Statement of cash flows is prepared as follows:

Q: 3. Using the following answer keys, you are to identify in which activity each of the transactions…

A: Cash flows refer to the movement of money in and out of a business or individual's financial…

Q: Provide iand Create nformation needed to create a Statement of Cash Flows using the Indirect Method.…

A: Given that, to consider net income and 3 transactions relating to operating activities, 2…

Q: Assuming a statement of cash flows is prepared using the indirect method, indicate the reporting of…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive…

Q: Labels Dec. 31, Dec. 31, December 31, 20Y3 20Y3 20Y2 For the Year Ended December 31, 20Y3 Amount…

A: The statement of cash flow is a part of the financial statement prepared on the reporting date to…

Question

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 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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased
Which is the proper order of the sections of the statement of cash flows? A. financing, investing, operating B. operating, investing, financing C. investing, operating, financing D. operating, financing, investing
Use the following excerpts from Nutmeg Companys financial records to determine net cash flows from operating activities and net cash flows from investing activities.
Use the following excerpts from Kirsten Companys Statement of Cash Flows and other financial records to determine the companys free cash flow.
Reporting Net Cash Flow from Operating Activities The following information is available for Cornelius Inc: Required: 1. Compute the net cash flows from operating activities using the indirect method. 2. CONCEPTUAL CONNECTION Explain why Cornelius was able to report net cash flow from operating activities that was higher than net income. 3. CONCEPTUAL CONNECTION What could the difference between net income and cash flow from operating activities signal to financial statement users?
Which of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipment
When preparing the operating section of the statement of cash flows, using the indirect method, how must gains and losses be handled? Why?
Use the following excerpts from Eagle Companys financial records to determine net cash flows from financing activities.
Use the following information from Acorn Companys financial statements to determine operating net cash flows (indirect method).
Use the following information from Manuscript Companys financial records to determine net cash flows from financing activities.
The following shows excerpts from Camole Companys statement of cash flows and other financial records. Compute the following for the company: A. free cash flow B. cash flows to sales ratio C. cash flows to assets ratio
Explain the purpose of the statement of cash flows and why this statement is needed.