Question
In: Accounting
1. Both the direct and indirect methods yield the identical net cash flow amount provided or...
1. Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities.
True or False
2. The cash flow on total assets ratio is affected by income recognition and measurement.
True or False
3. Investing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of short-term investments, and (c) loaning money.
True or False
4. The direct method separately lists operating cash receipts, such as cash received from customers.
True or False
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Define and describe the difference between the direct and indirect methods for calculating the cash flow...
Define and describe the difference between the direct and
indirect methods for calculating the cash flow from operating
activities.
What are the other major sections of the cash flow statement?
Describe the main functions of these components.
“The statement of cash flow can be presented either in the ‘direct’ or ‘indirect’ methods.” Differentiate...
“The statement of cash flow can be presented either in the
‘direct’ or ‘indirect’ methods.” Differentiate both presentation
methods.
Explain the difference between the direct and indirect methods of preparing a cash flow statement. Name...
Explain the difference between the direct and indirect methods
of preparing a cash flow statement. Name two advantages and two
disadvantages of each method
C. Prepare a statement of cash flow on both the direct and indirect method 2017 2016...
C. Prepare a
statement of cash flow on both the direct and indirect method
2017
2016
Change
Assets:
Cash
215,000
70,000
145,000
Accounts receivable, net
87,000
65,000
22,000
Inventory
54,000
60,000
-6,000
Property, plant &
equipment
750,000
600,000
150,000
Accumulated depreciation
-110,000
-60,000
-50,000
Total Assets
996,000
735,000
261,000
Liabilities & Equity
Accounts payable
44,000
40,000
4,000
Accrued liabilities
41,000
40,000
1,000
Common stock
460,000
460,000
Retained earnings
451,000
195,000
256,000
Total liabilities and
equity
996,000
735,000
261,000
Sales
1,450,000...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
I. Prepare a statement of cash
flow on both a direct and indirect basis
2017
2016
Change
Assets:
Cash
215,000
70,000
145,000
Accounts receivable, net
87,000
55,000
32,000
Inventory
74,000
60,000
14,000
Prepaid expenses
12,000
20,000
-8,000
Investments
70,000
80,000
-10,000
Property, plant & equipment
750,000
550,000
200,000
Accumulated depreciation
-90,000
-70,000
-20,000
Patents
6,000
10,000
-4,000
Total Assets
1,124,000
775,000
349,000
Liabilities & Equity
Accounts payable
37,000
50,000
-13,000
Accrued liabilities
26,000
40,000
-14,000
Taxes payable
18,000
4,000
14,000...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
I. Prepare a
statement of cash flow on both a direct and indirect basis
2017
2016
Change
Assets:
Cash
215,000
70,000
145,000
Accounts receivable, net
87,000
55,000
32,000
Inventory
74,000
60,000
14,000
Prepaid expenses
12,000
20,000
-8,000
Investments
70,000
80,000
-10,000
Property, plant &
equipment
750,000
550,000
200,000
Accumulated depreciation
-90,000
-70,000
-20,000
Patents
6,000
10,000
-4,000
Total Assets
1,124,000
775,000
349,000
Liabilities & Equity
Accounts payable
37,000
50,000
-13,000
Accrued liabilities
26,000
40,000
-14,000
Taxes payable
18,000
4,000
14,000...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
I. Prepare a
statement of cash flow on both a direct and indirect
basis
2017
2016
Change
Assets:
Cash
215,000
70,000
145,000
Accounts receivable, net
87,000
55,000
32,000
Inventory
74,000
60,000
14,000
Prepaid expenses
12,000
20,000
-8,000
Investments
70,000
80,000
-10,000
Property, plant &
equipment
750,000
550,000
200,000
Accumulated depreciation
-90,000
-70,000
-20,000
Patents
6,000
10,000
-4,000
Total Assets
1,124,000
775,000
349,000
Liabilities & Equity
Accounts payable
37,000
50,000
-13,000
Accrued liabilities
26,000
40,000
-14,000
Taxes payable
18,000
4,000
14,000...
B. Prepare a statement of cash flow on both the direct and indirect method 2017 2016...
B. Prepare a statement of cash flow on both the direct and
indirect method
2017
2016
Assets:
Cash
245,000
70,000
Accounts receivable, net
87,000
65,000
Inventory
54,000
60,000
Property, plant & equipment
650,000
600,000
Accumulated depreciation
(90,000)
(60,000)
Total Assets
946,000
735,000
Liabilities & Equity
Accounts payable
44,000
40,000
Accrued liabilities
41,000
40,000
Common stock
460,000
460,000
Retained earnings
401,000
...
H. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
H. Prepare a statement of cash flow on both a direct and
indirect basis
2017
2016
Assets:
Cash
225,000
50,000
Accounts receivable, net
95,000
84,000
Inventory
52,000
60,000
Prepaid expenses
13,000
20,000
Investments
70,000
10,000
Property, plant & equipment
750,000
600,000
Accumulated depreciation
(90,000)
(60,000)
Patents
16,000
20,000
Total Assets
1,131,000
784,000
Liabilities & Equity
Accounts payable
44,000
50,000
Accrued...
F. Prepare a statement of cash flow on both direct and indirect method 2017 2016 Change...
F. Prepare a
statement of cash flow on both direct and indirect method
2017
2016
Change
Assets:
Cash
215,000
70,000
145,000
Accounts receivable, net
87,000
65,000
22,000
Inventory
74,000
60,000
14,000
Prepaid expenses
12,000
20,000
-8,000
Property, palnt &
equipment
780,000
600,000
180,000
Accumulated depreciation
-110,000
-60,000
-50,000
Total Assets
1,058,000
755,000
303,000
Liabilities & Equity
Accounts payable
32,000
40,000
-8,000
Accrued liabilities
26,000
40,000
-14,000
Taxes payable
15,000
4,000
11,000
Long-term Notes Payable
100,000
-
Common stock
200,000...
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