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. 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. Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others. To Prepare: The statement of cash flows of Company R.

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem 21.27E

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.

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.

Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others.

To Prepare: The statement of cash flows of Company R.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please do not give image format

11 Compute Cash Flow from Operating Activities from the following details: Particulars Trade Receivables: Debtors CA Bills Receivable CA Trade Payables: Creditors CL Bills Payable CL L Expenses Outstanding Accrued Income CAT Depreciation on Fixed Assets No + Surplus, i.e., Balance in Statement of Profit & Loss 31st March, 2023 (R) 50,000 23,000 28,000 22,000 4,500 9,000 5,000 90,000 31st March 2022 ) 60,000 25,000 32,000 35,000 3,500 8,000 4,000 80,000

PB6. LO 16.3 Use the following excerpts from Kayak Company's financial information to prepare the operating section of the statement of cash flows (indirect method) for the year 2018. 2018 Income Statement Balance Sheets $ 777,000 (555,000) (22,000) (44,000) (11,000) 145,000 Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Loss on Sale of Plant Assets Net Income Accounts Receivable Inventory Accounts Payable Accrued Liabilities Dec. 31, 2018 $63,300 2,400 35,000 2,100 Dec. 31, 2017 $63,000 2,800 37,400 2,650 Accounts Receivable Inventory Accounts Payable Accrued Liabilities