Consolidated statement of cash flow: Consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared from the information in the three consolidated statements. When an indirect approach is used, consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively. Cash flows statement is divided in to three parts, cash flows from operating activities, it explains source and uses of cash from ongoing regular business activity. Cash flow from financing activity showing Funds Company generated using finance in the business, and investing activity displays how much money has been used in or generated by making investments during specific time period. Requirement 1 the computation of cash received from customers, cash paid to suppliers and resulting operating cash flow.

Question

Want to see the full answer?

Answer 1

Question

Chapter 10, Problem 10.3E

To determine

Consolidated statement of cash flow: Consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared from the information in the three consolidated statements. When an indirect approach is used, consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.

Cash flows statement is divided in to three parts, cash flows from operating activities, it explains source and uses of cash from ongoing regular business activity. Cash flow from financing activity showing Funds Company generated using finance in the business, and investing activity displays how much money has been used in or generated by making investments during specific time period.

Requirement 1

the computation of cash received from customers, cash paid to suppliers and resulting operating cash flow.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you please solve this financial accounting question?

3. The management of an amusement park is considering purchasing a new ride for $95,000 that would have a useful life of 10 years. The company has estimated that the net present value of all cash flows except salvage value from the initial investment and annual cash inflows is ($4,853). The company's discount rate is 9%. What would the salvage value of the ride in 10 years need to be to make this investment attractive?

Solve this financial accounting problem