The following information can be obtained by examining a company's balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Decreases in current asset account balances, other than cash. c. Cash outflows to purchase long-term assets. d. Decreases in current liability account balances. e. Cash outflows to repay long-term debt. f. Gains recognized on the sale of long-term assets. g. Noncash expenses (e.g., depreciation). h. Cash outflows to purchase treasury stock. i. Increases in current liability account balances. j. Cash inflows from the sale of long-term assets. k. Cash inflows from the issue of common stock. I. Cash outflows to pay dividends. m. Losses incurred from the sale of long-term assets. n. Cash inflows from the issue of long-term debt. Required For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would be added or subtracted when determining the net cash flow from operating, investing, or financing activities. Assume the indirect method is used to prepare the operating activities section of the statement of cash flows. The first item has been completed as an example.
The following information can be obtained by examining a company's balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Decreases in current asset account balances, other than cash. c. Cash outflows to purchase long-term assets. d. Decreases in current liability account balances. e. Cash outflows to repay long-term debt. f. Gains recognized on the sale of long-term assets. g. Noncash expenses (e.g., depreciation). h. Cash outflows to purchase treasury stock. i. Increases in current liability account balances. j. Cash inflows from the sale of long-term assets. k. Cash inflows from the issue of common stock. I. Cash outflows to pay dividends. m. Losses incurred from the sale of long-term assets. n. Cash inflows from the issue of long-term debt. Required For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would be added or subtracted when determining the net cash flow from operating, investing, or financing activities. Assume the indirect method is used to prepare the operating activities section of the statement of cash flows. The first item has been completed as an example.
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 26BE
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Transcribed Image Text:The following information can be obtained by examining a company's balance sheet and income statement information:
a. Increases in current asset account balances, other than cash.
b. Decreases in current asset account balances, other than cash.
c. Cash outflows to purchase long-term assets.
d. Decreases in current liability account balances.
e. Cash outflows to repay long-term debt.
f. Gains recognized on the sale of long-term assets.
g. Noncash expenses (e.g., depreciation).
h. Cash outflows to purchase treasury stock.
i. Increases in current liability account balances.
j. Cash inflows from the sale of long-term assets.
k. Cash inflows from the issue of common stock.
I. Cash outflows to pay dividends.
m. Losses incurred from the sale of long-term assets.
n. Cash inflows from the issue of long-term debt.
Required
For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities.
Also, indicate whether the item would be added or subtracted when determining the net cash flow from operating, investing, or
financing activities. Assume the indirect method is used to prepare the operating activities section of the statement of cash flows. The
first item has been completed as an example.
Item
Type of Activity
Add or Subtract
Operating
Subtract
а.
b.
C.
d.
е.
f.
g.
h.
i.
j.
k.
I.
m.
n.
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