MYLAB ACCOUNTING WITH PEARSON ETEXT --
7th Edition
ISBN: 2819120053883
Author: MILLER-NOBLES
Publisher: PEARSON
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Question
Chapter 14, Problem 14.2SE
To determine
Classification of activities in cash flow statement
Following are the four classifications of
- Operating Activities: In the operating activities section of the cash flow statement,
cash inflows from the revenue of the business operations are reported, whilecash outflows for the expenses for the business operations are reported. - Investing activities: In the investing activities section of the cash flow statement, increase and decrease in the long-term assets representing outflow and inflow of cash on account of investing activities is reported.
- Financing activities: In the financing activities section of the cash flow, increase and decrease in the long-term liabilities and equities representing inflow and outflow of cash on account of financing activities are reported.
- Non-cash activities: The transactions where cash is not involved are treated as non-cash activities.
To Identify: The given items as operating (O), investing (I), financing (F), or non-cash (N) activities in the statement of cash flow.
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Vihat Tech is considering a project that will produce incremental annual sales of $250,000 and increase cash expenses by $160,000. If the project is implemented, taxes will increase from $29,000 to $33,000. The company is debt-free. What is the amount of the operating cash flow using the top-down approach? Answer
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The operating cash flow using the top down approach?
Chapter 14 Solutions
MYLAB ACCOUNTING WITH PEARSON ETEXT --
Ch. 14 - The purposes of the statement of cash flows are to...Ch. 14 - The main categories of cash flow activities are a....Ch. 14 - Operating activities are most closely related to...Ch. 14 - Which item does not appear on a statement of cash...Ch. 14 - Leather Shop earned net income of 57,000 after...Ch. 14 - The Plant Assets account and Accumulated...Ch. 14 - Mountain Water Corp. issued common stock of 28,000...Ch. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - If accrued liabilities increased during the year,...
Ch. 14 - Prob. 1RQCh. 14 - How does the statement of cash flows help users of...Ch. 14 - Describe the three basic types of cash flow...Ch. 14 - What types of transactions are reported in the...Ch. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Explain why depreciation expense, depletion...Ch. 14 - Prob. 8RQCh. 14 - If current assets other than cash increase, what...Ch. 14 - If current liabilities increase, what is the...Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15ARQCh. 14 - Prob. 16BRQCh. 14 - Describing the purposes of the statement of cash...Ch. 14 - Prob. 14.2SECh. 14 - Classifying items on the indirect statement of...Ch. 14 - Classifying cash flow items Consider the following...Ch. 14 - Prob. 14.17ECh. 14 - Prob. 14.18E
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