Chapter 2, Problem 19P

a)

Summary Introduction

To determine: The cash generated from operating activities by C Company.

Introduction:

10K report is a summary report that contains information of the company’s financial data.

b)

Summary Introduction

To determine: The depreciation and amortization of C Company.

Introduction:

Fall in the value of assets due to tear and wear and obsolescence due to usage of assets is termed as depreciation. The word “depreciation” is used for the tangible assets, and the word “amortization” is used for intangible assets.

c)

Summary Introduction

To determine: The amount of cash invested in new property and equipment.

Introduction:

Property and equipment are the assets of the company that are essential for the operation of the business.

d)

Summary Introduction

To determine: The amount rose from sale of shares of the stocks.

Introduction:

An indivisible unit of capital is termed as shares. The company issues a share to raise its share capital.