Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
8th Edition
ISBN: 9781119221647
Author: Paul D. Kimmel
Publisher: Wiley (WileyPLUS Products)
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Chapter 12, Problem 12.1BE

(a)

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.

Type of activities reported in statement of cash flows:

Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code, Chapter 12, Problem 12.1BE

Figure (1)

To Indicate: Statement presentation of transactions.

Issue of bonds payable for cash amounted to $200,000 must be reported in the Financing activities in the statement of cash flow.

(b)

To determine

To Indicate: Statement presentation of transactions.

Purchase of equipment for cash amounted to $180,000 must be reported in the Investing activities in the statement of cash flow.

(c)

To determine

To Indicate: Statement presentation of transactions.

Sale of land for cash amounted to $20,000 must be reported in the Investing activities in the statement of cash flow.

(d)

To determine

To Indicate: Statement presentation of transactions.

Payment of cash dividend amounted to $50,000 must be reported in the Financing activities in the statement of cash flow.

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Chapter 12 Solutions

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