1. Assuming a company uses the indirect method to report cash flows from operati
ID: 2375967 • Letter: 1
Question
1. Assuming a company uses the indirect method to report cash flows from operating activities, indicate where each of the following items would appear on its statement of cash flows. Also indicate whether the cash flow would appear as a positive or negative amount.
Operating
Activities
Investing
Activities
Financing
Activities
Positive
Amount
Negative
Amount
Sold equipment for cash
Accounts payable decreased
Recorded depreciation expense
Loaned cash to another company
Paid interest on a note payable
Equipment sale resulted in a loss
Accounts receivable decreased
Issued common stock for cash
Income taxes payable increased
Paid cash dividends
Merchandise inventory increased
Operating
Activities
Investing
Activities
Financing
Activities
Positive
Amount
Negative
Amount
Sold equipment for cash
Accounts payable decreased
Recorded depreciation expense
Loaned cash to another company
Paid interest on a note payable
Equipment sale resulted in a loss
Accounts receivable decreased
Issued common stock for cash
Income taxes payable increased
Paid cash dividends
Merchandise inventory increased
Explanation / Answer
Hi,
Please find the answer as follows (the relevant areas have been marked as "Yes", others have been left blank.
Thanks.
Operating Investing Financing Positive Negative Sold equipment for cash Yes Yes Accounts payable decreased Yes Yes Recorded depreciation expense Yes Yes Loaned cash to another company Yes Yes Paid interest on a note payable Yes Yes Equipment sale resulted in a loss Yes Yes Accounts receivable decreased Yes Yes Issued common stock for cash Yes Yes Income taxes payable increased Yes Yes Paid cash dividends Yes Yes Merchandise inventory increased Yes Yes
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.