Question
a comapny uses the Indirect Method to prepare its Cashflow Statement. The 10 items in the table below belong on Easterns Cashflow Statement which follows
a comapny uses the Indirect Method to prepare its Cashflow Statement. The 10 items in the table below belong on Easterns Cashflow Statement which follows the table.First write the item and its dollar amount under the activity it correctly belongs under (Operating, Investing or Financing) on the Cashflow Statement. Next, for each item identify whether it is a cash Inflow (or positive adjustment to Net Income in the Operating Section) by leaving the dollar amounts positive. If the item is a cash Outflow (or a negative adjustment to Net Income in the Operating Section), make the numbers negative by adding ( ) parenthesis around them.Also calculate the total dollar amount for each of the three activities - being careful to use parenthesis if the total is negative.
Cash flows from Operating Activities:
Net Income $ 2,535,000
Net Cash provided by Operating Activities :? $
Cash flows from Investing Activities:? $
Net Cash from Investing Activities : ? $
Cash flows from Financing Activities:? $
Net Cash provided by Financing Activities ? $
Total Net Increase in Cash $ 1,500,000
Cashflow Items Decrease in Accounts Payable Annual Depreciation Expense Paid back Long Term Loan Principle Proceeds from Sale of Property, Plant & Equipment Proceeds from Acquiring Short Term Loan Increase in Accounts Receivable Dividend paid on Common Stock Proceeds from sale of investments Purchase of Treasury Stock Decrease in Inventory Amo S 330,000 225,000 300,000 15,000 300,000 15,000 300,000 75,000 750,000 45.000Step by Step Solution
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