Which of the following would be in the investing section of the statement of cash flows?
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For all questions assume that the indirect method is used. Show There are four parts to the Statement of Cash Flows (or Cash Flow Statement): For each of the following items, indicate which part will be affected. Depreciation Expense. Proceeds from the sale of equipment used in the business. The Loss on the Sale of Equipment in Question #2. Declaration and payment of dividends on company's stock. Gain on the Sale of Automobile formerly used in the business. The proceeds from the sale of the automobile in Item #5. An increase in the balance in a retailer's Merchandise Inventory. An increase in the balance in Accounts Payable. Retirement of long-term Bonds Payable. Purchase of Treasury Stock (company's own stock). The purchase of a new delivery truck to be used in the business. A decrease in the balance of Accounts Receivable. An increase in Bonds Payable (a long-term liability). A decrease in the current asset account Prepaid Insurance. A decrease in the current liability Income Taxes Payable. The proceeds from issuing additional Common Stock. The amortization of the cost of an intangible asset. The exchange/conversion of long-term bonds into common stock. For items 19 - 30 indicate whether they will have a positive or negative EFFECT ON CASH. A positive effect could also be thought of as a source of cash, an increase in cash, or a positive amount on the cash flow statement. A negative effect could also be thought of as a use of cash, a decrease in cash, or a negative amount on the cash flow statement. An increase in the balance of Prepaid Insurance. A decrease in Supplies on hand. The proceeds from the sale of equipment formerly used in the business. The Loss on the Sale of Equipment in the previous question. An increase in the current liability Income Taxes Payable. A decrease in Accounts Payable. An increase in Accounts Receivable. An increase in the current liability Warranty Liability. Dividends declared and paid. Proceeds from the issuance of Preferred Stock. The Gain on the Sale of Equipment formerly used in the business. An increase in the long-term asset Investment in Another Company. For a recent year a corporation's financial statements reported the following:
 Based on the above information, what amount will the corporation report as Net Cash Provided by Operating Activities on the cash flow statement? A corporation reported the following information for the past year:
Assuming these are the only facts, what amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? Using the information in Question #32, what amount will be reported under Cash From Investing Activities? Want more practice questions? What goes in the investing section of the statement of cash flows?Items reported on a cash flow statement for investing activities include purchases of long-term assets such as property, plant, and equipment (PP&E), investments in marketable securities such as stocks and bonds, as well as acquisitions of other businesses (M&A).
What are some examples of investing activities on the cash flow statement?Investing activities can include:. Purchase of property plant, and equipment (PP&E), also known as capital expenditures.. Proceeds from the sale of PP&E.. Acquisitions of other businesses or companies.. Proceeds from the sale of other businesses (divestitures). Purchases of marketable securities (i.e., stocks, bonds, etc.). Which of the following would not appear in the investing section of the statement of cash flows?Answer and Explanation: The correct option is (a) Purchase of inventory. Purchase of inventory is the operational activity of a business and hence any cash flows associated with the purchase of inventory would appear under cash flows from operational activities and not in the investing section.
What are examples of investing activities?Examples of Investing Activities. Purchase of Investments. ... . Proceeds from the Sale of Investments. ... . Purchase of Fixed Assets. ... . Proceeds from the Sale of Fixed Assets.. |
