Chapter 21, Problem 21.19Q

To determine

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.

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 Compare: The manner in which investing activities are reported on a statement of cash flows prepared by the direct method and by the indirect method.