Novak Corporation is preparing its 2014 statement of cash flows, using the indirect method. Presented below is
Question:
Code Letter........................................Effect
A................................................... Added to net income in the operating section
D................................................... Deducted from net income in the operating section
R-I...................................................Cash receipt in investing section
P-I...................................................Cash payment in investing section
R-F..................................................Cash receipt in financing section
P-F..................................................Cash payment in financing section
N ...................................................Noncash investing and financing activity
Items
____ (a) Purchase of land and building
____ (b) Decrease in accounts receivable.
____ (c) Issuance of stock
____ (d) Depreciation expense
____ (e) Sale of land at book value
____ (f) Sale of land at a gain
____ (g) Payment of dividends
____ (h) Increase in accounts receivable
____ (j) Increase in accounts payable
____ (i) Purchase of available-for-sale investment
____ (k) Decrease in accounts payable
. ____(l) Loan from bank by signing note
____ (m) Purchase of equipment using a note
____ (n) Increase in inventory
____ (o) Issuance of bonds
. ____ (p) Redemption of bonds payable
____ (q) Sale of equipment at a loss
____ (r) Purchase of treasury stock
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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