11) To determine cash received from customers for the cash flow statement using the direct method, a decrease in accounts receivable is added to sales.

 

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows.

 

12)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Cash paid for merchandise inventory

 

 

 

 

13)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Sale of land

 

 

 

 

 

14)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Cash paid for rent

 

 

 

 

 

15)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Increase in prepaid expenses

 

 

 

 

16)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Net loss

 

 

 

 

 

17)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Increase in accounts payable

 

 

 

 

 

18)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Cash received from customers

 

 

 

 

19)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Increase in inventory

 

 

 

 

 

20)

 

Col 1

Operating

Direct

Col 2

Operating

Indirect

Col 3

Investing

 

Col 4

Financing

 

Cash paid for salaries or wages

 

 

 

 

 

 

 



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