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help with 12- 2 and 12-3 connect MINI-EXERCISES M12-1 Identifying Companies from Cash Flow Patterns Based on the cash flows shown, classify each of the
help with 12- 2 and 12-3
connect MINI-EXERCISES M12-1 Identifying Companies from Cash Flow Patterns Based on the cash flows shown, classify each of the following cases as a company (S), a healthy established company (E), or an established company facing financia difficulties (F). growing start-up Case 1 Case 2 Case 3 Cash provided by (used for) operating activities Cash provided by (used for) investing activities Cash provided by (used for) financing activities Net change in cash Cash position at beginning of year Cash position at end of year $ 3,000 (70,000) 75,000 8,000 2,000 $ 10,000 $(120,000) 10,000 75,000 (35,000) 40,000 $ 5,000 $ 80,000 (40,000) (30,000 10,000 30,000 $ 40,000 M12-2 Matching Items Reported to Cash Flow Statement Categories (Indirect Method) The Buckle, Inc., included the following in its statement of cash flows presented using the indirect method. Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement or use (NA) if the item does not appear on the statement. 1. Purchase of investments. 4. Depreciation. 2. Proceeds from issuance of stock. 5. Accounts payable (decrease). 3. Purchase of equipment. 6. Inventory (increase). M12-3 Determining the Effects of Account Changes on Cash Flows from Operating Activities (Indirect Method) Indicate whether each item would be added (+) or subtracted (-) in the computation of cash flows from operating activities using the indirect method. 1. Depreciation. 4. Accounts receivable increase. 2. Inventory decrease. 5. Accrued liabilities increase. 3. Accounts payable decreaseStep by Step Solution
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