Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help me answer this following question?? Options are: A : B : C : D : E : F : A and

Can you please help me answer this following question??

image text in transcribed

Options are:

A : B : C : D : E : F : A and C : B and C : D and C : E and C : F and C : none

Note that x in the following statement of cash flows identifies a dollar amount and the letters (A) through (F) identify specific items which appear in the major sections of the statement prepared using the indirect method. Statement of Cash Flo Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Add + X (A) Deduct X (B) Net cash provided by operating activities Cash flows from investing activities Inflows + X (C) Outflows X (D) Net cash provided (used) by investing activities Cash flows from financing activities Inflows x (E) Outflows X (F) Net cash provided (used) by financing activities Net increase (decrease ) in cash For each of the following items, indicate by letter in the blank spaces below, the section or sections where the effect would be reported. Use the code (A through F) from above. If the item is not required to be reported on the statement of cash flows, write the word "none" in the blank. Assume that generally accepted accounting principles have been followed in determining net income and that there are no short-term securities which are considered cash equivalents. 1. After the retirement of an officerthe insurance policy was canceled, and a cash settlement was received by the firm. These proceeds were in excess of the book value of the policy . 2. Sales discounts lapsed and not taken by customers. (Sales are recorded at net originally.) 3. Accrued estimated income taxes for the period. These taxes will be paid next year. 4. Amortization of premium on bonds payable. 5. Premium amortized on investment in bonds 6. The book value of trading securities was reduced to fair value. 7. Purchase of available-for-sale securities. 8. Declaration of stock dividends (not yet issued) 9. Issued preferred stock in exchange for equipment. 10. Bad debts (under allowance method) estimated and recorded for the period (receivables classified as current ). 11. Gain on disposal of old machinery 12. Payment of cash dividends (previously declared in a prior period) 13. Available-for sale securities are sold at a loss 14. Two-year notes issued at discount for a patent. 15. Amortization of Discount on Notes Receivable (long-term). 16. Decrease in Retained Earnings Appropriated for self-insurance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security Audit And Control Features SAP ERP

Authors: Isaca

4th Edition

1604205806, 978-1604205800

More Books

Students also viewed these Accounting questions