Statement of Cash Flows : This statement records the inflows and outflows of cash and funds of the Company during the accounting period. It has following three parts: Financing Activities: This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces. Investing Activities: In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity. Operating Activities: The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows. To identify: The type of cash flow activity.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General Accounting solve this problem

Explain the theoretical concepts underlying equity (e.g., residual interest, stewardship, and proprietary theories)

General Accounting Question

Answer 2

Question

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Answer 6

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Answer 7

Chapter 1, Problem 21E

To determine

Statement of Cash Flows:

This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

Financing Activities:

This includes the cash flows related to financial transactions. The issue of shares will increase the cash flow from financing activity as it involves the increase in cash. The payment to the debenture holder involves cash outflow and the cash balance will reduces.

Investing Activities:

In this activity of cash flows, sale and purchase of investment/fixed assets, or any income related to the investment will be recorded. For example a fixed asset acquire from the company that will reduce the cash flow and a sale of investment that will increase the cash flow from investing activity.

Operating Activities:

The inflow and outflow of cash related to the operating nature is basically operating activity. The cash flow from operating activities can be computed by doing some adjustment in net income. There are two method of calculating cash flow from operating activity. One is the direct method, in this add revenue obtained and subtract the expenses. The other method of calculating cash flows from operating activity is an indirect method in this add non cash item to get correct cash flows.

To identify: The type of cash flow activity.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 1 - Prob. 1MCQ Ch. 1 - Prob. 2MCQ Ch. 1 - Prob. 3MCQ Ch. 1 - Brunswick borrows $ 50,000 cash from Third...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQ Ch. 1 - Technology is increasing used to process...Ch. 1 - Prob. 3DQ Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQ

Concept explainers

Videos

Want to see the full answer?

Chapter 1 Solutions