Question

In: Accounting

What is the reporting purpose of the statement of cash flows? Identify at least two questions...

What is the reporting purpose of the statement of cash flows? Identify at least two questions that the statement can answer?

Solutions

Expert Solution

Cash flow statements are prepare to ascertain the cash inflows and outflows during the particular year. The cash flow statemnt are further classified into

cash from operating activity

cash from investing activity

cash from financing activity

CASH FROM OPERATING ACTIVITY includes all those operating cash inflows and outflows.Cash from investing activity includes cash inflows and cash outflows from purchase, sale of fixed assets. Cash from financing activity includes all those inflows and outflows of finance related activity, ie share issue, redemption, dividend etc.

Cash flow statements helps to find out the net cash from all these activity.ie individual cash transactions for the year. It helps to find out changes in cash during a year.

QUESTIONS

1- What is the current status of company after analysing the cash flow statement?

2- What all are items included in each main heads of cash flow statement?

3-Explain the adjustment of dividend in cash flow statement

4-Using the cash flow statement, analysis any two companies financial performance

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

ANSWER ALL QUESTIONS... (1) "Described the purpose of the Statement Of Cash Flows". (2) "Identify the...
ANSWER ALL QUESTIONS... (1) "Described the purpose of the Statement Of Cash Flows". (2) "Identify the three (3) Sections of the Statement Of Cash Flows". (3) "Describe briefly what type of transactions are included in each of the three (3) sections of the Statement Of Cash Flows ". (4) "Discuss briefly the "Indirect Method" of the Operating Activities Section of the Statement Of Cash         Flows".
WHAT IS A STATEMENT OF CASH FLOWS? WHEN IS THE STATEMENT PREPARED? WHAT IS THE PURPOSE...
WHAT IS A STATEMENT OF CASH FLOWS? WHEN IS THE STATEMENT PREPARED? WHAT IS THE PURPOSE OF THE STATEMENT? NAME THREE ACTIVITIES LISTED UNTER THE STATTEMENT. FOR EACH ACTIVITY, WRITE ANY TWO CASH FLOWS THAT EITHER ARE ADDED OR SUBTRACTED. DETAIL WHETHER IT IS AN ADDITION OR SUBTRACTION.
What is the purpose of the statement of cash flows and what are some of its...
What is the purpose of the statement of cash flows and what are some of its major uses?
"Statement of Cash Flows" A Statement of Cash Flows is often one of the least used...
"Statement of Cash Flows" A Statement of Cash Flows is often one of the least used and understood of the key Financial Statements. However, it is a critical report to use when evaluating or analyzing a company. Showing where a company is receiving and using its cash - through Operations, Investing, and Financing - this report can be used to help evaluate liquidity, solvency, and financial flexibility. Analyze the key sections of the Statement of Cash Flows: Cash from Operations,...
1) What is the purpose of Statement of Cash Flows? 2) Why do we need Statement of Cash Flows?
  1) What is the purpose of Statement of Cash Flows? 2) Why do we need Statement of Cash Flows? 3)Statement of Cash Flows tracks net changes in cash flow. Transactions are grouped into 3 categories, Operating, Financing and Investing. Provide one sample transaction for Financial Activity Cash Inflow. (i.e. borrow $5000 from the bank) Provide one sample transaction for Investing Activity Cash Outflow. (i.e. purchase a truck) 4) Companies prefer the Indirect Method for Operating activity. What is the...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Cash $74,970 $91,680 Accounts receivable (net) 115,190 123,590 Merchandise inventory 164,570 153,180 Prepaid expenses 6,700...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year. Shasta Inc....
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $244,410 $227,360 Accounts receivable (net) 88,540 81,660 Inventories 249,940 241,760 Investments 0 93,660 Land 128,200...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net...
Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $284,360 $265,430 Accounts receivable (net) 103,010 95,330 Inventories 290,800 282,260 Investments 0 109,350 Land 149,150...
a1. The purpose of a statement of cash flows is to a. report a firm’s cash...
a1. The purpose of a statement of cash flows is to a. report a firm’s cash inflows and outflows during a period of time b. help the analyst assess a firm’s ability to generate cash for dividends and investments c. help the analyst identify a firm’s needs for external financing d. help the analyst understand the difference between net income and net cash flow from operating activities e. all of the above 2. Cash budgeting can lower the cost of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT