How would these items be classified in a cash flow statement prepared for a wholesale business:...
How would these items be classified in a cash flow statement prepared for a wholesale business:
i) Payment of wages of $1,000.
ii) Receipts of $25,000 from Accounts Receivable.
iii) $20,000 paid into the business by the owner as capital. Select one:
a. i. Investing outflow ii. Operating inflow iii. Financing inflow
b. i. Operating outflow ii. Operating inflow iii. Investing inflow
c. i. Operating outflow ii. Operating inflow iii. Financing inflow
d. i. operating outflow ii. Operating inflow iii. Does not appear in the cash flow statement
Homework Answers
Payment of wages is operating cash flow
Receipt from account receivable is operating cash flow
owner's investment is financing cash flow
So answer is c) i. Operating outflow ii. Operating inflow iii. Financing inflow
Add Answer to:
How would these items be classified in a cash flow statement
prepared for a wholesale business:...
Question 1 (60 points) Match items that appear on the statement of cash flows for the...
Question 1 (60 points) Match items that appear on the statement of cash flows for the year ended 12/31/2014 with the appropriate presentation on the statement. Decrease in salaries payable Increase in accounts receivable 1. added inflow in the operating activities section Net income 2. subtracted outflow in the operating activities section Cash paid for dividends 3. added inflow in the investing activities section Cash paid for construction of building 4 subtracted outflow in the investing activities section Cash received...
Brief Exercise 17-01 Each of the items below must be considered in preparing a statement of...
Brief Exercise 17-01 Each of the items below must be considered in preparing a statement of cash flows for Baskerville Co. for the year ended December 31, 2020. For each item, state how it should be shown in the statement of cash flows for 2020 if the indirect method is used. (a) Issued bonds for $200,000 cash. Cash Outflow from Financing ActivityCash Outflow from Operating ActivityCash Inflow from Operating ActivityCash Inflow from Financing ActivityCash Outflow from Investing ActivityCash Inflow From...
Paragraph Styles Ch.4 In-class exercises Topic: Cash flow activities LO: 1 1. In which of the...
Paragraph Styles Ch.4 In-class exercises Topic: Cash flow activities LO: 1 1. In which of the three activity categories of a statement of cash flows would each of the following items appear and do they represent a cash inflow or cash outflow? Use the following abbreviations: Op Out = Operating Cash Outflow Op In = Operating Cash Inflow Inv Out = Investing Cash Outflow Inv In = Investing Cash Inflow Fin Out = Financing Cash Outflow Fin In = Financing...
Match the section of the Cash Flow Statement with the activity it represents. Cash Flow from...
Match the section of the Cash Flow Statement with the activity it represents. Cash Flow from Operating Activities [Choose] [Choose] Day to day business operations Purchase and sale of long-term assets Activities to raise cash and pay back creditors and pay stockholders dividends Cash Flow from Investing Activities Cash Flow from Financing Activities [Choose) Determine how each activity is categorized and whether it is an inflow or outflow of cash. The sale of bonds (Select] [Select] [Select] Outflow Inflow The...
On the Statement of Cash Flows, cash receipts from the sale of common stock of your...
On the Statement of Cash Flows, cash receipts from the sale of common stock of your company to investors are reported in the operating activities section. O investing activities section. financing activities section. O schedule of noncash investing and financing activities. Question 29 (2 points) On the statement of cash flows using the indirect method, patent amortization expense will O be added to net income in the operating section. be deducted from net income in the operating section. appear as...
19. Statement of cash flows The statement of cash flows categorizes a firm's cash flows according...
19. Statement of cash flows The statement of cash flows categorizes a firm's cash flows according to the nature of the activities that give rise to them (for example, operating, investing, and financing cash flows) and then further differentiates these activities and cash flows into whether they involve sources and uses of cash. Two methods can be used to construct a statement of cash flows: the direct method and the indirect method. Under the indirect method, data from three financial...
The cash from the issuance of debt will be classified in the cash flow statement as:...
The cash from the issuance of debt will be classified in the cash flow statement as: operating cash flow Investing cash flow non-significant cash flow Financing cash flow Funny cash flow
If a business sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation,...
If a business sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation, how is this reported in the statement of cash flows? Multiple Choice $8,000 cash inflow in financing activities, and $3,000 loss as an addition to net income under operating activities $8,000 cash inflow in financing activities, $3,000 gain as an addition from net income under operating activities $8,000 inflow as an investing activity, and $3,000 gain as a subtraction from net income under operating...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...
Statement of Cash Flows The following are several items involving Tejera Company's cash flow activities for...
Statement of Cash Flows The following are several items involving Tejera Company's cash flow activities for 2019: a. Net income, $66,400 b. Receipt from issuance of common stock, $36,000 c. Payment for purchase of equipment, $41,600 d. Payment for purchase of land, $19,600 e. Depreciation expense, $20,500 f. Patent amortization expense, $1,200 g. Payment of dividends, $21,000 h. Decrease in salaries payable, $2,600 i. Increase in accounts receivable, $10,600 j. Beginning cash balance, $30,800 Required Prepare Tejera's statement of cash...
Question 1 (60 points) Match items that appear on the statement of cash flows for the year ended 12/31/2014 with the appropriate presentation on the statement. Decrease in salaries payable Increase in accounts receivable 1. added inflow in the operating activities section Net income 2. subtracted outflow in the operating activities section Cash paid for dividends 3. added inflow in the investing activities section Cash paid for construction of building 4 subtracted outflow in the investing activities section Cash received...
Paragraph Styles Ch.4 In-class exercises Topic: Cash flow activities LO: 1 1. In which of the three activity categories of a statement of cash flows would each of the following items appear and do they represent a cash inflow or cash outflow? Use the following abbreviations: Op Out = Operating Cash Outflow Op In = Operating Cash Inflow Inv Out = Investing Cash Outflow Inv In = Investing Cash Inflow Fin Out = Financing Cash Outflow Fin In = Financing...
Match the section of the Cash Flow Statement with the activity it represents. Cash Flow from Operating Activities [Choose] [Choose] Day to day business operations Purchase and sale of long-term assets Activities to raise cash and pay back creditors and pay stockholders dividends Cash Flow from Investing Activities Cash Flow from Financing Activities [Choose) Determine how each activity is categorized and whether it is an inflow or outflow of cash. The sale of bonds (Select] [Select] [Select] Outflow Inflow The...
On the Statement of Cash Flows, cash receipts from the sale of common stock of your company to investors are reported in the operating activities section. O investing activities section. financing activities section. O schedule of noncash investing and financing activities. Question 29 (2 points) On the statement of cash flows using the indirect method, patent amortization expense will O be added to net income in the operating section. be deducted from net income in the operating section. appear as...
19. Statement of cash flows The statement of cash flows categorizes a firm's cash flows according to the nature of the activities that give rise to them (for example, operating, investing, and financing cash flows) and then further differentiates these activities and cash flows into whether they involve sources and uses of cash. Two methods can be used to construct a statement of cash flows: the direct method and the indirect method. Under the indirect method, data from three financial...
If a business sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation, how is this reported in the statement of cash flows? Multiple Choice $8,000 cash inflow in financing activities, and $3,000 loss as an addition to net income under operating activities $8,000 cash inflow in financing activities, $3,000 gain as an addition from net income under operating activities $8,000 inflow as an investing activity, and $3,000 gain as a subtraction from net income under operating...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...
Statement of Cash Flows The following are several items involving Tejera Company's cash flow activities for 2019: a. Net income, $66,400 b. Receipt from issuance of common stock, $36,000 c. Payment for purchase of equipment, $41,600 d. Payment for purchase of land, $19,600 e. Depreciation expense, $20,500 f. Patent amortization expense, $1,200 g. Payment of dividends, $21,000 h. Decrease in salaries payable, $2,600 i. Increase in accounts receivable, $10,600 j. Beginning cash balance, $30,800 Required Prepare Tejera's statement of cash...
Most questions answered within 3 hours.
-
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 11 minutes ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 18 minutes ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 20 minutes ago -
36. The basic difference between government bureaus and market
firms is that bureaus:
a. can...
asked 20 minutes ago -
java
- A recursive method findR() to search for a number in list
(ArrayList)
- A...
asked 38 minutes ago -
Which of the following is an example of a screen against adverse
selection? [Mark All That...
asked 37 minutes ago -
A worker drives a 0.560 kg spike into a rail tie with a 2.76 kg
sledgehammer....
asked 43 minutes ago -
Assume the following information concerning two stocks that make
up an index. What is the price-weighted...
asked 46 minutes ago -
Suppose a firm has a retention ratio of 58 percent and net
income of $9.2 million....
asked 48 minutes ago -
1.A greater horizontal separation between the shallow and higher depth epicenters is indicative of:
A a...
asked 49 minutes ago -
(1). Which of the following molecules is most soluble
in hexane, C6H14?
NH3
CH3NH2
CH3OH
CH3CH3...
asked 48 minutes ago -
Calculate the speed of sound in water vapour (only) at 20 bar
and 350oC utilizing (a)...
asked 1 hour ago