Chapter 16, Problem 14QS

To determine

Cash Flow Statement:

Cash flow statement is a part of financial statement which reflects the cash inflows and outflows during the year. For the preparation of Cash-flow statement, all the activities have been divided among three parts: Operating Activities, Investing Activities and Financing Activities. Operating Activities are main activities of the business and for which the business is meant to be established. Investing activities are activities relating to activities of sale and purchase of fixed assets and long term investment. The Financing Activities are Activities relating to issue and repayment of stock, bonds, long term liabilities and also serving the cost related to such activities.

The effect on financing cash flows of retirement of note payable.

To determine

The effect on financing cash flows of dividend paid in cash.

To determine

The effect on financing cash flows of issue of common shares for purchase of machinery.