Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 12.1ME
To determine
Indicate whether each transaction of Company M is disclosed as operating (O), investing (I) or financing (F) activity section of the statement of
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Prepare the statement of cash flows in good form usingINDIRECT METHOD. Be sure to provide a proper heading for thestatement. Thank you.
Which of the following statements concerning the statement of cash flows is true?
Group of answer choices
IFRS requires companies to classify all income taxes paid as operating cash outflows.
When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows.
Under IFRS, the purchase of land by issuing common shares will be shown as a cash outflow under investing activities and a cash inflow under financing activities.
Companies may report the cash flows from purchases and sales of trading investments as cash flows from operating activities.
Classification of Cash Flows: For each of the following items, indicate whether the cash flow relates to an operating activity, an investing activity, or a financing activity.
Cash receipts from customers for services rendered
Sale of long-term investments for cash
Acquisition of PPE for cash
Payment of income taxes
Bonds payable issued for cash
Payment of cash dividends declared in previous year
Purchase of short-term investments (not cash equivalents) for cash
Chapter 12 Solutions
Connect Access Card for Financial Accounting
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - What are noncash investing and financing...Ch. 12 - Prob. 13QCh. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQCh. 12 - Prob. 12.1MECh. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Prob. 12.3MECh. 12 - Prob. 12.4MECh. 12 - Prob. 12.5MECh. 12 - Prob. 12.6MECh. 12 - Prob. 12.7MECh. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Prob. 12.6ECh. 12 - Prob. 12.7ECh. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 12.9ECh. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - (Chapter Supplement B) Computing and Reporting...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 12.15ECh. 12 - Prob. 12.16ECh. 12 - Prob. 12.17ECh. 12 - Prob. 12.18ECh. 12 - Prob. 12.19ECh. 12 - Prob. 12.20ECh. 12 - Prob. 12.21ECh. 12 - (Chapter Supplement A) Reporting and Interpreting...Ch. 12 - Prob. 12.23ECh. 12 - Prob. 12.24ECh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - (Chapter Supplement C) Preparing a Statement of...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.1CONCh. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Prob. 12.3CPCh. 12 - Prob. 12.4CPCh. 12 - Prob. 12.5CPCh. 12 - Prob. 12.6CP
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- Use the following information from Albuquerque Companys financial statements to determine operating net cash flows (indirect method).arrow_forwardUse the following information from Honolulu Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Dubuque Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forward
- please avoid images in answers thank youarrow_forwardSelected data derived from the income and balance sheet of National Beverage Co. for a recent year are as follows: required: A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method for National Beverage Co. B. Interpret your results in part (a).arrow_forwardIdentify the largest dollar amount item in the Operating Activity section of the company's Statement of Cash Flows. Explain precisely what is represented by this item.arrow_forward
- Identify which figure would be transferred to the statement of cash flow(using the indirect method) as net income.arrow_forwardClassifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…arrow_forwardNet Cash Provided by Operating Activities Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below: Required: Prepare an answer sheet using the following column headings: For each item, place an X in the Add or Subtract column to indicate whether the dollar amount should be added to or subtracted from net income under the indirect method when computing the net cash provided by operating activities for the year.arrow_forward
- Can you help calculate and interpret each of the operating activities cash flow , investing activities cash flow and financing activities cash flow for the company for 2021 on the consolidated statements of cash flows with the provided image below. (Use 2 decimal places)arrow_forwardRequired: (i) Prepare a cash basis income statement (ii) Prepare the cash flows from operating activities using the indirect approach. (b) Depreciation is often considered a major source of funds. Do you agree? Discuss.arrow_forwardMatch the individual transactions listed below with their statement of cash flows classification, using the following code: Cash inflow from operating activitiesCash outflow from operating activitiesCash inflow from investing activitiesCash outflow from investing activitiesCash inflow from financing activitiesCash outflow from financing activitiesNone of the above Payments for merchandisePayments for interestPayments for dividendsPayments for plant and equipmentPayments for bond payable retirementsPayments for marketable securitiesPayments for employeesPayments to governmentsIssuing a stock dividendCash from customersCash from issuing common shareCash from dividendsCash from sale of old buildingCash from interestarrow_forward
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