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: T Corporation Partial statement of cash flows For the current year ended Operating Activities Amount ($) Cash collected from customers (working note) 48,000 Cash paid to other suppliers (working note) (20,100) Cash received from other income 400 Cash paid for taxes (working note) (4,490) Net cash provided by operating activities 23,810 Table (1) Working Note: Calculation of cash collected from customers is:

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

1st Edition

ISBN: 9780134047430

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 6, Problem 6.8E

To determine

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

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Chapter 6, Problem 6.7E

Chapter 6, Problem 6.9E

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Chapter 6 Solutions

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

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 23,810. Cash can be increased or decreased through operating, investing, and financing activities.

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

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Chapter 6 Solutions