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Business Accounting FINANCIAL ACCT-CONNECT

In the cash flow statement, there are three types of activities. Cash flow includes operating activities, investing activities, and financing activities. Operating activities are related to the main business of the person, investing activities related to the investment made by the person in its long term assets, and financing activities include the burden of the finance taken by the person. To Explain: Current situation of the company and comment over future position. The company has an overall negative cash inflow in the second year of business. Negative cash flow is not a tense situation for the company because of the following reasons: The company has a net loss of $ 10000 in the current year because a loss by fire amounted to $ 85000. If no loss by fire then net profit is $ 75000 (85000-10000). There is a purchase of plant assets which results in negative cash flow in investing activities. So, negative cash flow is not a bad thing in investing activities. Above mentioned outflow of money and loss by fire not be permanent in the future. So, the profit and cash flow position is to improve in the future.

In the cash flow statement, there are three types of activities. Cash flow includes operating activities, investing activities, and financing activities. Operating activities are related to the main business of the person, investing activities related to the investment made by the person in its long term assets, and financing activities include the burden of the finance taken by the person. To Explain: Current situation of the company and comment over future position. The company has an overall negative cash inflow in the second year of business. Negative cash flow is not a tense situation for the company because of the following reasons: The company has a net loss of $ 10000 in the current year because a loss by fire amounted to $ 85000. If no loss by fire then net profit is $ 75000 (85000-10000). There is a purchase of plant assets which results in negative cash flow in investing activities. So, negative cash flow is not a bad thing in investing activities. Above mentioned outflow of money and loss by fire not be permanent in the future. So, the profit and cash flow position is to improve in the future.

Solution Summary: The author explains that in the cash flow statement, there are three types of activities: operating activities, investing activities and financing activities.

FINANCIAL ACCT-CONNECT

FINANCIAL ACCT-CONNECT

8th Edition

ISBN: 9781266627903

Author: Wild

Publisher: INTER MCG

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Chapter 12, Problem 6BTN

Chapter 12, Problem 10BTN

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Chapter 12 Solutions

FINANCIAL ACCT-CONNECT

Ch. 12 - What is the reporting purpose of the statement of...Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Describe the direct method of reporting cash flows...Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Ch. 12 - Prob. 11DQ Ch. 12 - Prob. 12DQ Ch. 12 - Prob. 13DQ Ch. 12 - Prob. 14DQ Ch. 12 - Prob. 15DQ Ch. 12 - Prob. 1QS Ch. 12 - Prob. 2QS Ch. 12 - Prob. 3QS Ch. 12 - Prob. 4QS Ch. 12 - Prob. 5QS Ch. 12 - Prob. 6QS Ch. 12 - Prob. 7QS Ch. 12 - Prob. 8QS Ch. 12 - Computing financing cash flows P3 The following...Ch. 12 - Prob. 10QS Ch. 12 - Prob. 11QS Ch. 12 - Prob. 12QS Ch. 12 - Prob. 13QS Ch. 12 - Refer to the data in QS 12-11. How much cash is...Ch. 12 - Prob. 15QS Ch. 12 - Prob. 16QS Ch. 12 - Prob. 17QS Ch. 12 - Prob. 18QS Ch. 12 - Prob. 19QS Ch. 12 - Prob. 20QS Ch. 12 - The following transactions and events occurred...Ch. 12 - Prob. 2E Ch. 12 - Prob. 3E Ch. 12 - Prob. 4E Ch. 12 - Prob. 5E Ch. 12 - Prob. 6E Ch. 12 - Prob. 7E Ch. 12 - Prob. 8E Ch. 12 - Prob. 9E Ch. 12 - Prob. 10E Ch. 12 - Prob. 11E Ch. 12 - Prob. 12E Ch. 12 - Prob. 13E Ch. 12 - Prob. 14E Ch. 12 - Prob. 15E Ch. 12 - Prob. 16E Ch. 12 - Prob. 17E Ch. 12 - Prob. 18E Ch. 12 - Prob. 1PSA Ch. 12 - Prob. 2PSA Ch. 12 - Prob. 3PSA Ch. 12 - Prob. 4PSA Ch. 12 - Prob. 5PSA Ch. 12 - Prob. 6PSA Ch. 12 - Prob. 7PSA Ch. 12 - Prob. 8PSA Ch. 12 - Prob. 1PSB Ch. 12 - Prob. 2PSB Ch. 12 - Prob. 3PSB Ch. 12 - Prob. 4PSB Ch. 12 - Prob. 5PSB Ch. 12 - Prob. 6PSB Ch. 12 - Prob. 7PSB Ch. 12 - Prob. 8PSB Ch. 12 - Santana Rey, owner of Business Solutions, decides...Ch. 12 - Prob. 1BTN Ch. 12 - Prob. 2BTN Ch. 12 - Prob. 3BTN Ch. 12 - Prob. 4BTN Ch. 12 - Access the March 31, 2015, filing of the 10-K...Ch. 12 - Prob. 6BTN Ch. 12 - Prob. 8BTN Ch. 12 - Prob. 10BTN

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