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
Related questions
Question

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
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education