Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity
Operating Activity:
Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the
Financial Activity:
Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and
Investing Activity:
Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.
To prepare: Cash flow statement

Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
Managerial Accounting
- The unit product cost of the components according to the company's cost accounting system isarrow_forwardFargo Wellness Center has total equity of $1,040,000, sales of $1.88 million, and a profit margin of 5.2 percent. What is the Return on Equity (ROE)?arrow_forwardSolve this Accounting problemarrow_forward
- Please explain the solution to this general accounting problem using the correct accounting principles.arrow_forwardCan you solve this general accounting problem using accurate calculation methods?arrow_forwardJessica Electronics manufactures home automation devices. The company incurs variable manufacturing costs of $28 per unit and total fixed manufacturing costs of $392,000. If 7,000 units are manufactured and the company uses the absorption costing concept, what is the manufacturing cost per unit?arrow_forward
- Please provide problem with accounting questionarrow_forwardA vehicle costing $124,800 with a 6-year life and $118,500 depreciable cost was purchased on January 1. Compute the yearly depreciation expense using straight-line depreciation. Round the answer to the nearest whole dollar.arrow_forwardCompute the spending variance for materialsarrow_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





