Question

In: Accounting

List of account activity and how they are added or subtracted on the statement of cash...

List of account activity and how they are added or subtracted on the statement of cash flows?

1. Cash Received from Customers

2. Decrease in Accounts Receivable

3. Increase in Inventory

4. Decrease in Inventory

5. Increase in Prepaid Expenses

6. Decrease in Prepaid Expenses

7. Equipment Purchase

8. Sale of Equipment

9. Paid Salaries and Wages

10. Cash Received from Issuing Stock

11. Cash Paid for Income Taxes

12. Cash Paid to purchase investments in Securities

13 Dividends Paid to Owners

14. Interest Paid in Liabilities

15. Cash Used to repay Principal to Lenders

16. Cash Used to Repurchase Stock from Owners

17. Cash Provided by Dividends and Interest on Investments

18. Cash from Sale or Maturity of Investments in Securities

19. Cash Provided by Borrowing from a Bank

20. Depreciation Expense

Expert Solution

	Added/Subtracted
1. Cash Received from Customers	Added
2. Decrease in Accounts Receivable	Added
3. Increase in Inventory	Subtracted
4. Decrease in Inventory	Added
5. Increase in Prepaid Expenses	Subtracted
6. Decrease in Prepaid Expenses	Added
7. Equipment Purchase	Subtracted
8. Sale of Equipment	Added
9. Paid Salaries and Wages	Subtracted
10. Cash Received from Issuing Stock	Added
11. Cash Paid for Income Taxes	Subtracted
12. Cash Paid to purchase investments in Securities	Subtracted
13 Dividends Paid to Owners	Subtracted
14. Interest Paid in Liabilities	Subtracted
15. Cash Used to repay Principal to Lenders	Subtracted
16. Cash Used to Repurchase Stock from Owners	Subtracted
17. Cash Provided by Dividends and Interest on Investments	Added
18. Cash from Sale or Maturity of Investments in Securities	Added
19. Cash Provided by Borrowing from a Bank	Added
20. Depreciation Expense	Added

General notes for cash flow
Cash is increased when Current liability increase or Current asset Decrease.
Cash is Decreased when Current liability Decrease or Current asset Increase.
Depreciation or loss on sale of any asset is a non cash expense hence it will be added to net income to get operating cash
Profit on sale of asset or investment is a non cash profit and hence will be deducted from operating income.

ekkarill92 answered 4 months ago

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