Managerial Accounting
Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 12, Problem 11E
To determine

(a)

Introduction:

Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.

To indicate:

Whether the accounts receivable increased (I) or Decreased (D), using the given cash flow statement.

To determine

(b)

Introduction:

Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.

To indicate:

Whether the inventories increased (I) or Decreased (D), using the given cash flow statement.

To determine

(c)

Introduction:

Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year. It also includes changes in current assets and current liabilities as they lead to inflow/outflow of cash.

To indicate:

Whether the Accounts payable increased (I) or Decreased (D), using the given cash flow statement.

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Managerial Accounting

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