The following information can be obtained by examining a company's balance sheet and income statement information. a. Gains recognized on the sale of noncurrent assets. b. Cash outflows to pay dividends. c. Cash inflows from the issue of common stock. d. Cash inflows from the sale of noncurrent assets. e. Increases in current liability account balances. f. Cash inflows from the issue of noncurrent debt. g. Losses incurred from the sale of noncurrent assets. h. Decreases in noncash current asset account balances. i. Cash outflows to repay noncurrent debt. j. Increases in noncash current asset account balances. k. Cash outflows made to purchase noncurrent assets. 1. Decreases in current liability account balances. m. Noncash expenses (e.g., depreciation). n. Cash outflows to purchase treasury stock. Required Construct a table like the one shown below. 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 operat- ing, investing, or financing activities. Assume the indirect method is used to prepare the operat- ing 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. Gains recognized on the sale of noncurrent assets. b. Cash outflows to pay dividends. c. Cash inflows from the issue of common stock. d. Cash inflows from the sale of noncurrent assets. e. Increases in current liability account balances. f. Cash inflows from the issue of noncurrent debt. g. Losses incurred from the sale of noncurrent assets. h. Decreases in noncash current asset account balances. i. Cash outflows to repay noncurrent debt. j. Increases in noncash current asset account balances. k. Cash outflows made to purchase noncurrent assets. 1. Decreases in current liability account balances. m. Noncash expenses (e.g., depreciation). n. Cash outflows to purchase treasury stock. Required Construct a table like the one shown below. 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 operat- ing, investing, or financing activities. Assume the indirect method is used to prepare the operat- ing activities section of the statement of cash flows. The first item has been completed as an example.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:LO 1, 3, 4
Problem 12-17B Preparing a statement of cash flows
The following information can be obtained by examining a company's balance sheet and income
statement information.
a. Gains recognized on the sale of noncurrent assets.
b. Cash outflows to pay dividends.
c. Cash inflows from the issue of common stock.
d. Cash inflows from the sale of noncurrent assets.
e. Increases in current liability account balances.
f. Cash inflows from the issue of noncurrent debt.
g. Losses incurred from the sale of noncurrent assets.
h. Decreases in noncash current asset account balances.
i. Cash outflows to repay noncurrent debt.
j. Increases in noncash current asset account balances.
k. Cash outflows made to purchase noncurrent assets.
1. Decreases in current liability account balances.
m. Noncash expenses (e.g., depreciation).
n. Cash outflows to purchase treasury stock.
Required
Construct a table like the one shown below. 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 operat-
ing, investing, or financing activities. Assume the indirect method is used to prepare the operat-
ing activities section of the statement of cash flows. The first item has been completed as an
example.
Item
a.
D
b.
C.
d.
e.
f.
9.
h.
i.
j.
k.
1.
m.
n.
Type of Activity
Operating
Add or Subtract
Subtract
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