Cornerstone Exercise 11-18 Classification of Cash Flows A review of the statement of financial position of...
Cornerstone Exercise 11-18
Classification of Cash Flows
A review of the statement of financial position of Petarch Company Ltd. revealed the following changes in the account balances:
Required:
Classify each change in the statement of financial position account as a cash flow from operating activities (indirect method), a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity.
| a. | Increase in long-term investment | |
| b. | Increase in accounts receivable | |
| c. | Increase in common shares | |
| d. | Increase in long-term debt | |
| e. | Decrease in accounts payable | |
| f. | Decrease in supplies inventory | |
| g. | Increase in prepaid insurance |
Homework Answers
| a. | Increase in long-term investment | cash flow from investing activities |
| b. | Increase in accounts receivable | cash flow from operating activities |
| c. | Increase in common shares | cash flow from financing activities |
| d. | Increase in long-term debt | cash flow from financing activities |
| e. | Decrease in accounts payable | cash flow from operating activities |
| f. | Decrease in supplies inventory | cash flow from operating activities |
| g. | Increase in prepaid insurance | cash flow from operating activities |
Kindly comment if you need further assistance. Thanks
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Cornerstone Exercise 11-18
Classification of Cash Flows
A review of the statement of financial position of...
Cornerstone Exercise 11-18 Classification of Cash Flows A review of the statement of financial position of...
Cornerstone Exercise 11-18 Classification of Cash Flows A review of the statement of financial position of Petarch Company Ltd. revealed the following changes in the account balances: Required: Classify each change in the statement of financial position account as a cash flow from operating activities (indirect method), a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity. a. Increase in long-term investment b. Increase in accounts receivable c. Increase in common...
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solve and expalin simple
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