As consultants in advisory services at an accounting firm, we are hired by management of Gadberry to advise on cash flow reporting. Management is concerned about the relatively small net increase in cash, and how the company is doing compared to competitors Nessly and Tootsey. The following Tableau Dashboard will assist in our analysis.

Gadberry (green) Operating Activities: $40,000

Nessly (Red) Investing Activites: $15,000

Nessly (Orange) Financing: $25,000

Tootsey (Green) Operating Activities: $10,000

Gadberry (Red) Investing Activities: $(4,000)

Gadberry (Orange) Financing Activities: $(34,000)

Nessly (Green) Operating Activites: $(30,000)

Tootsey (Red) Investing: $(9,000)

Nessly (Pink Circle) Net Income/Loss: $(33,000)

Tootsey (Yellow Circle) Net Income/Loss: $12,000

Gadberry (Purple Circle) Net Income/Loss: $45,000

Management of Gadberry wants an explanation as to why financing activities created such a large cash outflow. Which of the following is a reasonable explanation for an outflow? 2. Management of Gadberry wants to know how it might be able to generate positive cash inflows from investing activities next year. Which of the following actions would help achieve this goal? 3. Management of Gadberry is wondering how net cash provided by operating activities reported on the statement of cash flows is different than reported net income. Which of the following would explain the amount of difference for Gadberry? 4. Which of the following would explain the amount of net cash used in investing activities reported on Gadberrys statement of cash flows? 5. Which of the following would explain the amount of net cash used in financing activities reported on Gadberrys statement of cash flows?

Options for the last table

• Decrease in interest payable of $7,000; increase in prepaid expenses of $2,000.
• Depreciation expense of $3,000; gain on sale of plant assets of $2,000; decrease in accounts payable of $6,000.
• Depreciation expense of $3,000; Increase in inventory of $1,500; decrease in interest payable of $7,000.
• Gain on retirement of notes of $4,000; increase in accounts receivable of $6,000; increase in income taxes payable of $3,000.

Cash Flows for Competing Companies Gadberry Nessly Tootsey $50,000 $40,000 $30,000 Cash Inflows 7 $20,000 $10,000 $(10,000) $(20,000) Cash Outflows $(30,000) $(40,000) Operating Activities Investing Activities Financing Activities $(50,000) Net Income (Loss) for Competing Companies Gadberry Nessly Tootsey $(40,000) $(30,000) $(20,000) $(10,000) Net Loss om sa samo samo saco con $0 $10,000 $20,000 $30,000 $40,000 Net Income Req 1 Reg 2 Req 3 to 5 Management of Gadberry wants an explanation as to why financing activities created such a large cash outflow. Which of the following is a reasonable explanation for an outflow? (Select all that apply.) Paid dividends to shareholders. Issued more common stock. Issued long-term debt. Purchased treasury stock. Issued preferred stock. Req 1 Reg 2 Req 3 to 5 Management of Gadberry wants to know how it might be able to generate positive cash inflows from investing activities next year. Which of the following actions would help achieve this goal? (Select all that apply.) Selling an intangible asset. Acquiring a new truck. Selling the company's old factory. Purchasing a patent. Selling a short-term stock investment. Loaning money to another business in return for a note receivable. Req 1 Req 2 Req 3 to 5 3. Management of Gadberry is wondering how net cash provided by operating activities reported on the statement of cash flows is different than reported net income. Which of the following would explain the amount of difference for Gadberry? 4. Which of the following would explain the amount of net cash used in investing activities reported on Gadberry's statement of cash flows? :5. Which of the following would explain the amount of net cash used in financing activities reported on Gadberry's statement of cash flows? Show Which of the following would explain the difference between Gadberry's net income and cash provided by operating activities? Which of the following would explain the amount of net cash used in investing activities reported on Gadberry's statement of cash flows? Which of the following would explain the amount of net cash used in financing activities reported on Gadberry's statement of cash flows?