See images below and answer these questions according to the financial information given Requirements 1. Answer the following questions for the directors: A. True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? B. True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? c. True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? D. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E. True or false, buying property, plant and equipment would be considered a cash outflow from financing
See images below and answer these questions according to the financial information given Requirements 1. Answer the following questions for the directors: A. True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? B. True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? c. True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? D. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E. True or false, buying property, plant and equipment would be considered a cash outflow from financing
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 64.1C: Researching Accounting Standards: Dissenting Views and the Statement of Cash Flows The preparation...
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See images below and answer these questions according to the financial information given
Requirements
1. Answer the following questions for the directors:
A. True or false, does the statement of cash flows explains the difference
between net income and the change in the cash balance?
B. True or false, investors and management use the statement of cash flows to evaluate a firm's profitability?
c. True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans?
D. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities?
E. True or false, buying property, plant and equipment would be considered a cash outflow from financing?
F. True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts?
c. True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company, would this
transaction be shown in the investing activities section of the statement of
cash flows?
2. Reconstruct the company's comparative balance sheet for 2020/2021 using
the information and compute and show the missing figures to include the appropriate sign as a positive or negative
figure.
3. Prepare a complete statement of cash flows for 2021 using the indirect
method using the information given
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