Topic: Cash flow statement Total marks: 7.5 Part I 1. Give two examples of cash receipts...
Topic: Cash flow statement
Total marks: 7.5
Part I
1. Give two examples of cash receipts and two examples of cash
payments that fit into each of the following classifications: (1.5
marks)
a. Operating activities.
b. Investing activities.
c. Financing activities.
2. Why are payments and receipts of interest classified as
operating activities rather than as financing or investing
activities? (1.5 marks)
Homework Answers
Examples of cash receipts
Operating activities - sale of goods and receive form Debtor
Investing activities - sale of land , received intrest
Financing activities- issue common stock , take long term loan
Examples of cash payment
Operating - payment made to suppliers , cash paid for expenses
Investing - purchase a land , purchase a plant and machinery
Financing - Redemption of preference share , Dividend paid
The expense paid on the loans and bonds is an expense out through the income statement. While in the cash flow statement it is treated under the operating activities. ... As the interest paid will be subtracted from the cash receipt from the customers and other received cash amount.
Add Answer to:
Topic: Cash flow statement
Total marks: 7.5
Part I
1. Give two examples of cash receipts...
Question 4: Cash Flow Statement (7 marks) The Statement of Cash Flows for Sasha Ltd for...
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On a statement of cash flows prepared by using the direct method, cash receipts from interest...
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Question 4: Cash Flow Statement (7 marks) The Statement of Cash Flows for Sasha Ltd for year ended 30 June 2020 has been provided below: Sasha Ltd Statement of Cash Flows for the year ended 30 June 2020 $ $ 14,500 126,000 (16,500) (51,000) 73,000 Cash flows from operating activities Interest payments Receipts from customers Depreciation expense Payments to employees Net cash provided by operating activities Cash flows from investing activities Payment of dividends to shareholders Proceeds from issue of...
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Required information The purpose of the statement of cash flows is to report major cash receipts and cash payments related to operating, investing, or financing activities. Operating activities include transactions and events that determine net income. Investing activities include transactions and events that mainly affect long-term assets. Financing activities include transactions and events that mainly affect long-term liabilities and equity. Noncash investing and financing activities must be disclosed In either a note or a separate schedule to the statement of...
Paragraph Styles Ch.4 In-class exercises Topic: Cash flow activities LO: 1 1. In which of the three activity categories of a statement of cash flows would each of the following items appear and do they represent a cash inflow or cash outflow? Use the following abbreviations: Op Out = Operating Cash Outflow Op In = Operating Cash Inflow Inv Out = Investing Cash Outflow Inv In = Investing Cash Inflow Fin Out = Financing Cash Outflow Fin In = Financing...
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Cash paid for interest on a loan is classified as a cash flow from financing activities in a statement of cash flows. Select one: True False Two different methods of determining and presenting the net cash flows from operating activities are the indirect method and the reconciliation method. Select one: True False The operating activities section of the statement of cash flows shows a reconciliation of net income to the net cash provided by operating activities amount under the direct...
Which of the following is a noncash investing and financing activity? payment of a cash dividend payment of a six-month note payable purchase of merchandise inventory on account d i nce of common stock to acquire Land 10. A company purchases equipement for $32,000 cash. This transaction should be shown on the statement of cash flows under a investing activities h financing activities C oncach investing and financing activities d. operating activities 11. Cash flow per share is a required...
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Question 2 (30 marks) Unit 9 - Statement of Cash Flow As the accountant for Awesome Foods Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the indirect method and have gathered the following data from the accounting records: Principal payments on non-current debt$ 50,000 Collections on accounts receivable287,500 Increase in accounts payable24,300 Acquisition of equipment by issuing non-current note payable70,000 Depreciation expense71,300 Collection of loan principal58,000 Proceeds from sale of...
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