Chapter 12, Problem 1AA

To determine

(1)

Introduction:

Cash flow statements are the statements that determine the inflow and outflow of cash from three major activities that are carried out in a business, i.e., operating activities, investing activities and financing activities.

To state:

Company’s cash flow statement is prepared under direct method or indirect method.

To determine

(2)

Introduction:

Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year.

To identify:

The amount of cash provided by operating activities and cash paid for dividends for the fiscal year 2017, 2016 and 2015.

To determine

(3)

Introduction:

Cash flow from operating activities calculates the inflow and outflow of cash from day-to-day activities. It includes operating income and operating expenses for the year.

To state:

Whether the company had enough cash flows from operations to pay the dividends in 2017.

To determine

(4)

Introduction:

Cash flow from financing activities calculates the inflow and outflow of cash from issue of shares and debentures and long term-borrowings or repayment of loan and redemption of debentures

To state:

If the company spend more or less cash to repurchase common stock in 2017 versus 2016.