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. Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock . To analyze: Each transaction and classify each as financing, investing, and operating activity.

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Answer 1

Question

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

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Answer 2

Question

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

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Answer 3

Question

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

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Answer 4

Question

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

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Answer 5

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

Answer 6

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

Answer 7

Chapter 4, Problem 4.16E

1.

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.

Direct method: Under direct method, the items of income statement are converted into cash equivalents for getting cash provided by operating activity.

Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To analyze: Each transaction and classify each as financing, investing, and operating activity.

Answer 8

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

Answer 9

2.

To determine

To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3Q Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Prob. 4.4Q Ch. 4 - Prob. 4.5Q Ch. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - Prob. 4.9Q

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To prepare: The statement of cash flows using direct method for W Incorporation for the year ending March 31, 2016:

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