Explanation Statement of cash flows : This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities. Direct method: Under direct method, cash receipts from customers ( cash inflows ) and cash payments to suppliers ( cash outflows ) are reported under the operating activities. Operating activities: Operating activities include cash inflows and outflows from business operations. Compute cash provided by operating activities using the direct method. Company R Statement of Cash Flows (partial)-Direct Method For the Year Ended Particulars Amount ($) Amount ($) Cash flow from operating activities: Cash received from customers (1) $34,000 Interest revenue earned (2) $4,000 Net cash provided by operating activities $38,000 Table (1) Determine the cash received from customers...

24th Edition

ISBN: 9781260158601

Author: Wild

Publisher: MCG

See similar textbooks

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…

Videos

Question

Chapter 16, Problem 21QS

To determine

Compute cash provided by operating activities using the direct method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 16, Problem 20QS

Chapter 16, Problem 22QS

Students have asked these similar questions

accounting question

Please provide the accurate answer to this general accounting problem using valid techniques.

Accounting question

Chapter 16 Solutions

Principles of Financial Accounting.

Ch. 16 - A company uses the indirect method to determine...Ch. 16 - Prob. 2MCQ Ch. 16 - Prob. 3MCQ Ch. 16 - Prob. 4MCQ Ch. 16 - The following information is available for a...Ch. 16 - Prob. 1DQ Ch. 16 - Prob. 2DQ Ch. 16 - Prob. 3DQ Ch. 16 - Prob. 4DQ Ch. 16 - When a statement of cash flows is prepared using...

Ch. 16 - Prob. 6DQ Ch. 16 - Prob. 7DQ Ch. 16 - Prob. 8DQ Ch. 16 - Prob. 9DQ Ch. 16 - If a company reports positive net income for the...Ch. 16 - Prob. 11DQ Ch. 16 - Prob. 12DQ Ch. 16 - Prob. 13DQ Ch. 16 - Prob. 14DQ Ch. 16 - Prob. 15DQ Ch. 16 - Classify the following cash flows as either...Ch. 16 - Statement of cash flows Label the following...Ch. 16 - Prob. 3QS Ch. 16 - Prob. 4QS Ch. 16 - Prob. 5QS Ch. 16 - Prob. 6QS Ch. 16 - Prob. 7QS Ch. 16 - Prob. 8QS Ch. 16 - Prob. 9QS Ch. 16 - The plant assets section of the comparative...Ch. 16 - Prob. 11QS Ch. 16 - Prob. 12QS Ch. 16 - Prob. 13QS Ch. 16 - Prob. 14QS Ch. 16 - Prob. 15QS Ch. 16 - Prob. 16QS Ch. 16 - Prob. 17QS Ch. 16 - Prob. 18QS Ch. 16 - Prob. 19QS Ch. 16 - A company uses a spreadsheet to prepare its...Ch. 16 - Prob. 21QS Ch. 16 - Bioware Co. reports cost of goods sold of 42,000....Ch. 16 - Prob. 23QS Ch. 16 - Prob. 24QS Ch. 16 - Refer to the data in QS 16-7. 1. How much cash is...Ch. 16 - Refer to the data in QS 16-7. 1. How much cash is...Ch. 16 - Prob. 27QS Ch. 16 - Prob. 1E Ch. 16 - Prob. 2E Ch. 16 - Prob. 3E Ch. 16 - Prob. 4E Ch. 16 - Fitz Company reports the following information....Ch. 16 - Prob. 6E Ch. 16 - Prob. 7E Ch. 16 - Prob. 8E Ch. 16 - Use the following information to determine cash...Ch. 16 - For each of the following separate transactions,...Ch. 16 - Prob. 11E Ch. 16 - Use the following information to prepare a...Ch. 16 - Prob. 13E Ch. 16 - Complete the following spreadsheet in preparation...Ch. 16 - Prob. 15E Ch. 16 - Prob. 16E Ch. 16 - Prob. 17E Ch. 16 - Prob. 18E Ch. 16 - Use the following information about Ferron Company...Ch. 16 - Prob. 20E Ch. 16 - Prob. 1AP Ch. 16 - Refer to the information in Problem 16-1A....Ch. 16 - Forten Companys current-year income statement,...Ch. 16 - Prob. 4AP Ch. 16 - Prob. 5AP Ch. 16 - Golden Corp.s current-year income statement,...Ch. 16 - Prob. 7AP Ch. 16 - Prob. 8AP Ch. 16 - Prob. 1BP Ch. 16 - Prob. 2BP Ch. 16 - Gazelle Corporations current-year income...Ch. 16 - Prob. 4BP Ch. 16 - Prob. 5BP Ch. 16 - Prob. 6BP Ch. 16 - Prob. 7BP Ch. 16 - Prob. 8BP Ch. 16 - Prob. 16SP Ch. 16 - Use Apples financial statements in Appendix A to...Ch. 16 - Prob. 2AA Ch. 16 - Prob. 3AA Ch. 16 - Prob. 1BTN Ch. 16 - COMMUNICATING IN PRACTICE Your friend, Diana Wood,...Ch. 16 - Prob. 3BTN Ch. 16 - Prob. 5BTN Ch. 16 - Prob. 6BTN

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:9781285595047
Author:Weil
Publisher:Cengage
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning