Prepaid Expenses and Wages Payable relate. The only changes affecting retained earnings are net income and cash dividends paid. The companies categorize their cash flows into operating investing and financing cash flows. Statement of Cash Flows Indirect Method The operating cash flow section of the Statement of Cash Flows using the indirect method has the following form. Cash paid to suppliers. Received cash for the sale of equipment that had cost 66600 yielding a 3800 gain. Sold equipment for cash b. If a note had been taken in exchange for a portion of or all of the purchase price of the equipment only the cash actually paid would be reported as a payment on the statement of cash flows. Cash paid to suppliers. Interest and dividends received.
Issuance of common stock. Cash paid for equipment would be reported in the statement of cash flows in athe Cash flows from investing activities. New equipment is acquired for 75600 cash. The statement of cash flows is one of the components of a companys set of financial statements and is used to reveal the sources and uses of cash by a business. Cash paid to suppliers. Cash paid to employees. Statement of Cash Flows Indirect Method The operating cash flow section of the Statement of Cash Flows using the indirect method has the following form. It shows how the operating investing and financing activity affects the flow of cash of a company. The cash paid for the purchase of equipment during the year is 27000 and the proceeds from sale of equipment during the year is 16750 9500 cost 7250 gain. With the indirect cash flow statement we do.
40000 as the net cash provided by investing activities. Cash paid for other operating expenses. With the indirect cash flow statement we do. Statement of cash flows is a financial statement which reports the inflow and outflow of cash of a company over a particular period of time. Prepaid Expenses and Wages Payable relate. With a regular cash flow statement prepared using the direct method we take the following amounts from our accounting records and input them directly in the first section of the statement. Cash receipts from customers. Cash paid to employees. What is the Cash Flow Statement Direct Method. 40000 as the net cash used in investing activities.
Sold equipment for cash b. Cash paid to employees. If a note had been taken in exchange for a portion of or all of the purchase price of the equipment only the cash actually paid would be reported as a payment on the statement of cash flows. Both are investing activities and would be reported in the investing activities section of the statement of cash flows. Question 16 1 pts Cash paid for equipment would be reported on the statement of cash flows in the cash flows from operating activities section the cash flows from financing activities section the cash flows from investing activities section a separate schedule Question 17 1 pts Cash flow per share is required to be reported. This categorization helps users of financial. Cash paid for equipment would be reported in the statement of cash flows in athe Cash flows from investing activities. With the indirect cash flow statement we do. Cash collected from customers. Get the detailed answer.
With the indirect cash flow statement we do. We then use those amounts to calculate cash generated from operations. Prepaid Expenses and Wages Payable relate. Cash paid to suppliers. The direct method of presenting the statement of cash flows presents the specific cash flows associated with items that affect cash flow. The Statement of Cash Flows also referred to as the cash flow statement Cash Flow Statement A cash flow Statement contains information on how much cash a company generated and used during a given period is one of the three key financial statements that report the cash generated and spent during a specific period of time eg a month quarter or year. A corporation received 50000 in cash when it sold a building and paid 90000 in cash when it purchased some new machinery. Received cash for the sale of equipment that had cost 66600 yielding a 3800 gain. Interest and dividends received. It shows how the operating investing and financing activity affects the flow of cash of a company.
