Chapter 11, Problem 11.2APFA

(1)

To determine

Cash and cash equivalents:

Cash and cash equivalent are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date. Cash and cash equivalents are an asset; hence it is shown in the balance sheet.

To determine: The amount of increase or decrease in cash and cash equivalents for the most recent year of Company A.

(2)

To determine

Statement of cash flows:

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

To determine: The amount of net cash flow from operating activities, and largest reconciling item of recent year. Also determine whether there is increase or decrease in net cash flow from operating activity each year.

(3)

To determine

Statement of cash flows:

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

To determine: The amount of net cash flow from investing activities, and largest investing item of recent year. Also determine whether there is positive or negative in net cash flow from investing activity each year.

(4)

To determine

Statement of cash flows:

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

To determine: The amount of net cash flow from financing activities, and largest financing item of recent year. Also determine whether negative financing activities are good sign or bad sing.