Explanation Cash Flow Statement: Cash flow statement refers to the financial statement that shows the summary of increase or decrease in cash in a company for a particular period of time. Cash can be increased or decreased through three activities that are operating, investing and financing activities. Calculation of net cash flow is: E Incorporated Partial statement of cash flows For the year ended 31 December Operating Activities Amount ($) Cash collected from customers (working note) 79,585 Less: Cash paid to merchandise (working note) (42,851) Less: Cash paid to other suppliers (working note) (5,520) Less: Cash paid for interest (4,000) Less: Cash paid for taxes (working note) (6,184) Net cash provided by operating activities 21,030 Table (1) Working Note: Calculation of cash collected from customers is: Particulars Amount ($) Sales 80,085 Add: Decrease in accounts receivable (500)

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Chapter 6, Problem 6.13P

To determine

The net cash flow from operating activities under the direct reporting format.

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Chapter 6 Solutions

Pearson eText Intermediate Accounting -- Instant Access (Pearson+)

Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3Q Ch. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5Q Ch. 6 - Prob. 6.6Q Ch. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8Q Ch. 6 - Prob. 6.9Q Ch. 6 - What are the two main balance sheet formats?...

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The net cash flow from operating activities under the direct reporting format.

Solution Summary: The author explains that the net cash flow from operating activities under the direct reporting format is 21,030.

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The net cash flow from operating activities under the direct reporting format.

Chapter 6 Solutions