(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.
(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.
(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.
(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.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
Managerial Accounting + Connect Access Card
- 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