The financial statements of M&S are presented in Appendix E. The companys complete annual report, including the

Question:

The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online.


Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

a. Which method of computing net cash provided by operating activities does M&S use? What were the amounts of net cash provided by operating activities for the years 2016 and 2017? Which two items were most responsible for the increase in net cash provided by operating activities in 2017?

b. What was the most significant item in the cash flows used for investing activities section in 2017? What was the most significant item in the cash flows used for financing activities section in 2017?

c. Where is “deferred income taxes” reported in M&S’s statement of cash flows? Why does it appear in that section of the statement of cash flows?

d. Where is depreciation reported in M&S’s statement of cash flows? Why is depreciation added to net income in the statement of cash flows?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

Question Posted: