Statement Statement Added or Section Format Subtracted 1. Decrease in taxes paya

Question

Statement Statement Added or Section Format Subtracted 1. Decrease in taxes payable 2. Cash paid to suppliers ofinventory 3. Dividends declared andpaid 4. Depreciation expense 5. Sale of stock 6. Increase in accountsreceivable 7. Cash collected fromcustomers 8. Purchase of plant assets 9. Payments on long term debt 10. Cash paid for taxes 11. Increase in wages payable 12. Purchase of treasurystock For each item, indicate answers asshown. A. Would it appear on thestatement of cash flows under the operating activities (O) Investing activities (I), or Financingactivities (F) section? B. Would it appear in the directformat (D), indirect format (I), or in both formats (B)? C. Would it be added (+) orsubtracted (-) in computing cash flow? Statement Statement Added or Section Format Subtracted 1. Decrease in taxes payable 2. Cash paid to suppliers ofinventory 3. Dividends declared andpaid 4. Depreciation expense 5. Sale of stock 6. Increase in accountsreceivable 7. Cash collected fromcustomers 8. Purchase of plant assets 9. Payments on long term debt 10. Cash paid for taxes 11. Increase in wages payable 12. Purchase of treasurystock For each item, indicate answers asshown. A. Would it appear on thestatement of cash flows under the operating activities (O) Investing activities (I), or Financingactivities (F) section? B. Would it appear in the directformat (D), indirect format (I), or in both formats (B)? C. Would it be added (+) orsubtracted (-) in computing cash flow?

Explanation / Answer

No

1

O

I

ADDED

2

O

D

SUBTRACTED

3

F

B

SUBTRACTED

4

O

I

ADDED

5

F

B

ADDED

6

O

I

SUBTRACTED

7

O

D

ADDED

8

I

B

SUBTRACTED

9

F

B

SUBTRACTED

10

O

D

SUBTRACTED

11

O

I

ADDED

12

F

B

SUBTRACTED

No

Statement Section Statement Format Added or Subtracted

1

O

I

ADDED

2

O

D

SUBTRACTED

3

F

B

SUBTRACTED

4

O

I

ADDED

5

F

B

ADDED

6

O

I

SUBTRACTED

7

O

D

ADDED

8

I

B

SUBTRACTED

9

F

B

SUBTRACTED

10

O

D

SUBTRACTED

11

O

I

ADDED

12

F

B

SUBTRACTED

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