LO 1 Classification of Cash Flow Transactions P1. CONCEPT Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirect method. Transaction 1. Paid a cash dividend. 2. Decreased accounts receivable. 3. Increased inventory. 4. Incurred a net loss. 5. Declared and issued a stock dividend. 6. Retired long-term debt with cash. 7. Sold available-for-sale securities at a loss. 8. Issued stock for equipment. 9. Decreased prepaid insurance. 10. Purchased treasury stock with cash. 11. Retired a fully depreciated truck (no gain or loss). 12. Increased interest payable. 13. Decreased dividends receivable on investment. 14. Sold treasury stock. 15. Increased income taxes payable. 16. Transferred cash to money market account. 17. Purchased land and building with a mortgage. Cash Flow Classification Operating Investing Financing Noncash Activity Activity Activity Transaction Increase Decrease No Effect Effect on Cash Flows

LO 1 Classification of Cash Flow Transactions P1. CONCEPT Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirect method. Transaction 1. Paid a cash dividend. 2. Decreased accounts receivable. 3. Increased inventory. 4. Incurred a net loss. 5. Declared and issued a stock dividend. 6. Retired long-term debt with cash. 7. Sold available-for-sale securities at a loss. 8. Issued stock for equipment. 9. Decreased prepaid insurance. 10. Purchased treasury stock with cash. 11. Retired a fully depreciated truck (no gain or loss). 12. Increased interest payable. 13. Decreased dividends receivable on investment. 14. Sold treasury stock. 15. Increased income taxes payable. 16. Transferred cash to money market account. 17. Purchased land and building with a mortgage. Cash Flow Classification Operating Investing Financing Noncash Activity Activity Activity Transaction Increase Decrease No Effect Effect on Cash Flows

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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View previous at Required information Assume a company prepares the statement of cash flows using the indirect method. The company purchases its Inventory on credit from suppliers. How should a decrease in accounts payable be reflected In the section that reconciles net income to cash flow from operating activitles? Multiple Choice It would be added if the section starts with net income and subtracted if it starts with a net loss It would be added in reconciling net income to cash flow from operafing activities It would be subtracted in reconciling net income to cash flow from operating activities A change in accounts payable does not affect the reconciliation of net income to cash flow from operating activities < Prev 15 of 15 Next Form 1040Sch...pdf 6 Form1040 Sch...pdf B1040 Sohedul...pdf Form8829 (1).pdf MacBook Air
1 2:01:48 look int rences Exercise 12-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the a column(s). Note: More than one column may be used. a. Purchased treasury stock with cash b. Accounts receivable decreased in the year c. Issued bonds in return for cash d. Inventory increased in the year e. Recorded depreciation expense 1. Purchased land by issuing common stock g. Prepaid expenses increased in the year h. Purchased a building with cash 1. Sold merchandise to customer for cash j. Received a cash dividend from investment Operating Investing Activities Activities X Statement of Cash Flows [x Financing Activities Noncash Investing & Financing Activities Not Reported on Statement or in Notes
Place an X' in the appropriate columns for each of the following situations to indicate how amounts are classified and how or whether cash is affected: Effect on Cash Operating Investing Financing Activity Inflow (+) Situation Outflow No Activity Activity () Effect a. Paying off accounts payable with cash. b. Retirement of common stock with cash. e. Issuance of bonds for |cash. |d. Acquired land by issuing | common stock. e. Paid cash for inventory. E Collection of accounts receivable with customer cash.
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What effect will the cash payment of an account payable have on the Balance Sheet? Group of answer choices Decrease an asset and decrease stockholders’ equity Decrease an asset and decrease a liability Increase an asset and increase a liability Increase one asset and decrease another asset
Which statement cash of flows shows the inflows and outflows from sale and purchases of non current assets? A. Fiancing B. Operating C. Investing D. None of the above