Financial Accounting
Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 11, Problem 11.3AP
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.

Indirect method of cash flow from operating activities: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

  • Deduct increase in current assets
  • Deduct decrease in current liabilities
  • Add decrease in current assets
  • Add the increase in current liability
  • Add depreciation expense and amortization expense
  • Add loss on sale of plant assets
  • Less gain on sale of plant assets

To prepare: The operating activities section of the statement of cash flow of Technologies A.

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Chapter 11 Solutions

Financial Accounting

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