Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others. Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others. To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows .

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Answer 1

Question

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

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Does the value of any asset depends on the cash flows producedby the asset? Why?

Answer 2

Question

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

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Answer 3

Question

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

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Answer 4

Question

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

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Answer 5

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

Answer 6

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

Answer 7

Chapter 21, Problem 21.14Q

To determine

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

To Explain: The reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2Q Ch. 21 - Prob. 21.3Q Ch. 21 - Prob. 21.4Q Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q

Solution Summary: The author explains the reason for not reporting the gain from sale of an asset as cash flow from the operating activities in the statement of cash flows.

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Chapter 21 Solutions