a. Received dividends b. Paid of dividends c. Purchase of equipment d. Net income e. Issued company's common stock f. Amortization expense

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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For each of the following, identify whether it would be disclosed as an operating, financing, or investing activity on the statement of cash flows under the indirect method.

a. Received dividends
b. Paid of dividends
c. Purchase of equipment
d. Net income
e. Issued company's common stock
f. Amortization expense
Transcribed Image Text:a. Received dividends b. Paid of dividends c. Purchase of equipment d. Net income e. Issued company's common stock f. Amortization expense
Expert Solution
Step 1

 

A statement of cash flows is a financial statement showing how changes in balance sheet accounts and income affect cash & cash equivalents.

cash flow statement can be prepared using two methods

1.Direct method

2. Indirect method

 

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