Homework Answers
| Ans(B) | On a statement of cash flow prepared by using direct method,cash receipts from interest and dividends are classified as investing activities. |
| Under Direct Method: | |
| Operating Activities: It includes all principle revenue generating items and other items which is not investing and financing activities. | |
| Investing Activities: It includes purchase and sale of long term assets. | |
| Financing Activities: It includes all borrowings and change in owner's capital | |
| Cash Flows from Interest and dividend received should be classified as operating activities in case of Financial Enterprise,but in case of other enterprise interest received and dividend received should be treated as investing activities |
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On a statement of cash flows prepared by using the direct method, cash receipts from interest...
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...
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On the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would include Oa. receipts from the sale of investments b. payments for cash dividends c. receipts from the issuance of capital stock d. gains or losses on fixed assets
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m Preparing a Statement of Cash Flows (Direct Method) Rainbow Company's income statement and comparative balance...
m
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m
Preparing a Statement of Cash Flows (Direct Method) Rainbow Company's income statement and comparative balance sheets follow. RAINBOW COMPANY Income Statement For Year Ended December 31, 2016 Sales $2,250,000 Dividend Income 45,000 2,295,000 $1,320,000 390,000 117,000 21,000 Total Revenue Cost of Goods Sold Wages and Other Operating Expenses Depreciation Expense Patent Amortization Expense Interest Expense Income Tax Expense Loss on Sale of Equipment Gain on Sale of Investments Net Income 39,000 132,000 15,000 (9,000) 2,025,000 $270,000 RAINBOW COMPANY Balance...
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