Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s). Note: More than one column may be used. Statement of Cash Flows Operating Investing Financing Noncash Investing & Financing Activities Not Reported on Statement or in Notes Activities Activities Activities ☑ a. Issued bonds in return for cash b. Sold merchandise to customer for cash ☑ c. Declared and paid a cash dividend d. Received a cash dividend from investment e. Recorded depreciation expense f. Retired bonds payable by issuing stock g. Prepaid expenses increased in the year h. Sold land in return for cash i. Accounts receivable decreased in the year j. Inventory increased in the year ☑ ☑

Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s). Note: More than one column may be used. Statement of Cash Flows Operating Investing Financing Noncash Investing & Financing Activities Not Reported on Statement or in Notes Activities Activities Activities ☑ a. Issued bonds in return for cash b. Sold merchandise to customer for cash ☑ c. Declared and paid a cash dividend d. Received a cash dividend from investment e. Recorded depreciation expense f. Retired bonds payable by issuing stock g. Prepaid expenses increased in the year h. Sold land in return for cash i. Accounts receivable decreased in the year j. Inventory increased in the year ☑ ☑

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

Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s).

Note: More than one column may be used.

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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