Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN: 9781305654174

Author: Gary A. Porter, Curtis L. Norton

Publisher: Cengage Learning

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Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

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Textbook Question

Chapter 12, Problem 12.13MCP

Statement of Cash Flowsâ€”Direct Method

Lang Company has not yet prepared a formal statement of cash flows for 2016. Following are comparative balance sheets as of December 31, 2016 and 2015, and a statement of income and retained earnings for the year ended December 31, 2016:

Chapter 12, Problem 12.13MCP, Statement of Cash Flowsâ€”Direct Method Lang Company has not yet prepared a formal statement of cash , example 1

Chapter 12, Problem 12.13MCP, Statement of Cash Flowsâ€”Direct Method Lang Company has not yet prepared a formal statement of cash , example 2

Chapter 12, Problem 12.13MCP, Statement of Cash Flowsâ€”Direct Method Lang Company has not yet prepared a formal statement of cash , example 3

Required

For purposes of a statement of cash flows, are the U.S. Treasury bills cash equivalents? If not, how should they be classified? Explain your answers.
Prepare a statement of cash flows for 2016 using the direct method in the Operating Activities section.

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Chapter 12, Problem 12.12MCP

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Chapter 12 Solutions

Financial Accounting: The Impact on Decision Makers

Ch. 12 - Prob. 12.19E Ch. 12 - Statement of Cash Flowsâ€”Direct Method Lang...Ch. 12 - Prob. 12.12AMCP

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