Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement. the purpose of the cash flow statement.

Question

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Answer 1

Question

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.

Conclusion

The major purpose of the cash flow statement is to analyze the cash flow in an organization in an accounting period.

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Answer 2

Question

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.

Conclusion

The major purpose of the cash flow statement is to analyze the cash flow in an organization in an accounting period.

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Answer 3

Question

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.

Conclusion

The major purpose of the cash flow statement is to analyze the cash flow in an organization in an accounting period.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.

Conclusion

The major purpose of the cash flow statement is to analyze the cash flow in an organization in an accounting period.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.

Conclusion

The major purpose of the cash flow statement is to analyze the cash flow in an organization in an accounting period.

Answer 6

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.

Conclusion

The major purpose of the cash flow statement is to analyze the cash flow in an organization in an accounting period.

Answer 7

Chapter 14, Problem 1Q

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received under different activities, i.e., Operating, Investing and Financing Activity, is called cash flow statement.

the purpose of the cash flow statement.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Solution: The cash flow statement is prepared to study the net cash position of the company. It forms an integral part of the annual financial report.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Cash flow statement is a report that shows the net cash inflows and outflows due to the company’s business operations and thus represents the liquidity position of the company. Various business activities are divided into Operating, Investing and Financial activities and the cash inflows and outflows under these broad headings are classified.

It thus shows how the company manages its cash liquidity.

Broad purposed can be enumerated as below −

To ascertain the amount of cash inflow from various activities.
To ascertain the amount of cash paid or disbursed by the organization.
Along with the flow of cash in an organization, the cash flow statement also states where such fund has been utilized or received from.
It helps the management to analyze and future cash flow.
Cash flow statement further assist management to maintain certain amount of liquid asset in future.
It also communicates the amount invested by the firm or raised by the firm to investors or potential investors. It is stated as ‘cash flow under financing and investing activities’.