Explain the purposes of the statement of cash flows .

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Answer 1

Question

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

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Financial data for Hunger Games Company for last year appear below: Hunger Games Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $120,700 $220,000 Accounts receivable 225,000 475,000 Inventory 317,000 390,000 Plant and equipment (net) 940,000 860,000 Investment in Katniss Company 100,000 98,000 Land (undeveloped) 198,000 65,000 Total assets $1,900,700 $2,108,000 Liabilities and owners' equity: Accounts payable $178,700 $8,000 Long-term debt 512,000 600,000 Owners' equity 1,210,000 1,500,000 Total liabilities and owners' $1,900,700 $2,108,000 equity

Liability?

Answer 2

Question

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

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Answer 3

Question

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

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Answer 4

Question

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

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Answer 5

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

Answer 6

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

Answer 7

Chapter 6A, Problem 1RQ

To determine

Explain the purposes of the statement of cash flows.

Answer 8

Expert Solution & Answer

Explanation of Solution

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Purpose of the statement of cash flows:

The primary purpose of the statement of cash flows is to provide information about the cash inflows and cash outflows of an organization.
To determine the ability of the business to pay dividend and settle debts.
Statement of cash flows distinguishes among the operating activities, investing activities and financing activities.
Cash flows from operating activity provide information which is helpful in estimating future profitability, liquidity, and long term solvency.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 6A - Prob. 1RQ Ch. 6A - Prob. 2RQ Ch. 6A - SERIES A EXERCISE CLASSIFYING BUSINESS...Ch. 6A - SERIES A EXERCISE CLASSIFYING BUSINESS...Ch. 6A - SERIES B EXERCISE CLASSIFYING BUSINESS...Ch. 6A - SERIES B EXERCISE CLASSIFYING BUSINESS...Ch. 6A - COMPREHENSIVE PROBLEM 1: The Accounting Cycle Bob...Ch. 6A - COMPREHENSIVE PROBLEM 1, PERIOD 2: The Accounting...

Explain the purposes of the statement of cash flows .

Explain the purposes of the statement of cash flows.

Explanation of Solution

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