3.1 Sources and Uses of Cash Consider the following balance sheets for the Philippe Corporation. Calculate the changes in the various accounts and, where applicable, identify the change as a source or use of cash. What were the major sources and uses of cash? Did the company become more or less liquid during the year? What hap- pened to cash during the year? PHILIPPE CORPORATION 2020 and 2021 Balance Sheets (in millions) 2020 2021 Assets Current assets Cash $ 210 355 $ 215 310 Accounts receivable Inventory 507 328 $1,072 $ 853 Total $6,085 $6,527 Fixed assets Net plant and equipment Total assets $7,157 $7,380 (continued)

Use the following excerpts from Stern Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.

Statement of Cash Flows—Direct Method Lang Company has not yet prepared a formal statement of cash flows for 2016. Following are comparative balance sheets as of December 31, 2016 and 2015, and a statement of income and retained earnings for the year ended December 31, 2016: Required For purposes of a statement of cash flows, are the U.S. Treasury bills cash equivalents? If not, how should they be classified? Explain your answers. Prepare a statement of cash flows for 2016 using the direct method in the Operating Activities section.

Use the following excerpts from Mountain Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.

Use the following excerpts from Yardley Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.

Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000

Use the following information from Coconut Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.

In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased

What are two ways to report a companys net cash flow from operating activities? Briefly describe each method.