Cash flow statements are the statements that determines 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 indicate: The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

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Answer 1

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Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

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1. Dividend per share in a company Rs. 2, earning per share is Rs. 5 and the market value of the share is Rs. 25. What will be its yield? A. O 20% B. 12.5% C. 8% D. 25%

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Answer 2

Question

Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

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Answer 3

Question

Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

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Answer 4

Question

Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

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Answer 5

Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

Answer 6

Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

Answer 7

Chapter 12, Problem 1E

To determine

Introduction:

Cash flow statements are the statements that determines 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 indicate:

The items given are a part of which activity, under indirect method. Use (O) for operating activity, (I) for investing activity, (F) for financing activity and (NA) if the item does not appear on the statement.

Answer 8

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Answer 10

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Answer 11

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

Solution Summary: The author explains that cash flow statements determine the inflow and outflow of cash from three major activities that are carried out in a business.

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