Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company has a net cash inflow from operating activities of $796,000, a net cash outflow of $64,000 from investing activities and a net
A company has a net cash inflow from operating activities of $796,000, a net cash outflow of $64,000 from investing activities and a net cash inflow of $101,100 from financing activities. The company paid $131,000 in interest, $190,000 in income taxes, and $207,000 in cash dividends. Which of the following statements about the statement of cash flows is not correct? Multiple Choice The cash dividends of $207,000 paid will be reported as a cash outflow in the cash flow from investing activities section. The statement of cash flows will show a net increase in cash and cash equivalents of $833,100. If the direct method is used, the $131,000 of interest paid and the $190,000 of income taxes paid will be reported in the cash flows from operating activities. Supplemental disclosures required for a company using the indirect method include the amount of interest and the amount of income taxes paid.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started