Direct method: This method uses the basis of cash for preparing the cash flows of statement.
Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.
Cash Receipts: It encompasses all the cash receipts from sale of goods and on
Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.
To Compute: Cash payments for operating expenses under direct method.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
- A new machine with a purchase price of $90,000, transportation costs of $8,000, installation costs of $6,000, and special handling fees of $2,000, would have a cost basis of: find outarrow_forwardDo fast answer of this accounting questionsarrow_forwardKindly help me with accounting questionsarrow_forward
- A new machine with a purchase price of $90,000, transportation costs of $8,000, installation costs of $6,000, and special handling fees of $2,000, would have a cost basis of:arrow_forwardNeed help with this accounting questionsarrow_forwardA put option written on non-controlling interests is? Accounting Problem: A) Recognized as financial liability at present value B) Recorded as equity C) Disclosed only in notes D) Treated as contingent liability??arrow_forward
- A put option written on non-controlling interests is? Accounting Problem: A) Recognized as financial liability at present value B) Recorded as equity C) Disclosed only in notes D) Treated as contingent liability. Answerarrow_forwardGeneral Accountingarrow_forwardI want to correct answer general accounting questionarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education