Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? a.Credit purchase of inventory b.Salary payments to employees c.Cash paid for purchase of equipment d.Sales of product, for cash

Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? a.Credit purchase of inventory b.Salary payments to employees c.Cash paid for purchase of equipment d.Sales of product, for cash

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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The independent cases listed below include all items relevant to operating activities. Sales revenue Cost of goods sold Depreciation expense Salaries and wages expense Net income (loss) Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Salaries and wages payable increase (decrease) Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities Case A Case B Case A Required: Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case C $ 74,000 39,500 10,900 5,900 $ 17,700 $ (1,000) 2,900 e 1,950 Case B $ 64,000 30,500 2,900 13,900 $ 16,700 $ 4,900 0 3,400 (2,900) Case C $ 105,000 70,300 26,900 8,900 $ (1,100) $ 3,900 (3,900) (1,000) 1,000
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