Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 12, Problem 6Q
To determine
Introduction:
Non- cash transactions
The transaction which does not involve any cash dealings is known as non-cash transactions. In these type transactions there will not be any inflow or outflow of cash. Simply put, the transaction which does not have an impact on the inflow or outflow of cash is called as non-cash transactions.
To Provide: Three examples of significant non-cash transactions to be reported under “Non-cash investing and financing activities”
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Hi! Can you please help me answer these three short questions? Please do. Thank you.
Which of the following is presented under the investing activities section of a statement of cash flows?
a. Purchase of equipment on account.
b. Additional investment in debt securities.
c. Issuance of additional shares of stock.
d. Cash sales.
Noncash items, such as depreciation expense, must be added to net income to arrive at net cash provided by (used in) operating activities when the indirect method is used.
a. True
b. False
The standards does not provide definitive guidance in distinguishing material information from immaterial information, so it is necessary to exercise judgment in deciding if a transaction is material.
a. True
b. False
Assuming Sherban reports dividends paid as a financing activity:
Calculate net cash flow from operating activities. Use a proper three-line title.
Calculate Sherban’s current cash debt coverage ratio, cash debt coverage ratio and free cash flow.
Using your answers in part (b) and comment on Sherban’s liquidity and financial flexibility.
Under IFRS, how else might Sherban account for cash dividends paid in the cash flow statement?
In preparing the statement of cash flows, how should non-cash investing/financing activities be reported?
Select one:
a. In the financing activities section of the statement of cash flows
b. Should not to be reported
c. In a separate schedule accompanying the statement of cash flows
d. In the investing activities section of the statement of cash flows
Chapter 12 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Why is it necessary to use comparative balance...Ch. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 16QCh. 12 - Prob. 17QCh. 12 - Prob. 18QCh. 12 - Prob. 19QCh. 12 - Prob. 20QCh. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - The management of Uhuru Inc. is trying to decide...Ch. 12 - Prob. 12.13BECh. 12 - Prob. 12.14BECh. 12 - Prob. 12.15BECh. 12 - Prob. 12.1DIECh. 12 - Prob. 12.2ADIECh. 12 - Prob. 12.2BDIECh. 12 - Prob. 12.3DIECh. 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 - Prob. 12.8ECh. 12 - Prob. 12.9ECh. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Prob. 12.12ECh. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Prob. 12.15ECh. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Prob. 12.7APCh. 12 - Prob. 12.8APCh. 12 - Prob. 12.9APCh. 12 - Prob. 12.10APCh. 12 - Prob. 12.11APCh. 12 - Prob. 12.12APCh. 12 - Prob. 12.1EYCTCh. 12 - Prob. 12.2EYCTCh. 12 - Prob. 12.3EYCTCh. 12 - Prob. 12.7EYCTCh. 12 - Prob. 12.8EYCTCh. 12 - Prob. 12.9EYCTCh. 12 - Prob. 12.1IFRSCh. 12 - Prob. 12.2IFRSCh. 12 - Prob. 12.3IFRS
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- can you help me with the last part of the question Indicate whether the transaction increases (+), decreases (–), or increases and decreases (+/-) each element of the financial statements. Also, in the Statement of Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and leave blank for no effect. The first transaction is recorded as an example. (Not all cells require input.)arrow_forwardGive me answerarrow_forwardFor each of the events listed below, select the category that best describes its effect on a statement of cash flows. Assume that the statement of cash flows is being prepared in accordance with ASPE using the indirect method. Your categories are as follows: Cash provided/used by operating activities Cash provided/used by investing activities Cash provided/used by financing activities Not a cash flow item Events: _____ 1. Issuance of common shares _____ 2. Purchase of land and building _____ 3. Redemption of bonds _____ 4. Proceeds on sale of equipment _____ 5. Depreciation of machinery _____ 6. Amortization of patent _____ 7. Issuance of bonds in exchange for land _____ 8. Payment of cash dividends _____ 9. Exchange of furniture for equipment _____ 10. Loss on disposal of equipment _____ 11. Increase in accounts receivable during year _____ 12. Decrease in accounts payable during yeararrow_forward
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