(a)
Introduction:
The direct method helps us to record
To prepare:
Cash flows from operating activities under direct method.
(b)
Introduction:
The direct method helps us to record cash flows from operating activities. Cash flows arise from collections from the customers and cash payments to suppliers, employees and others. The direct method also reports cash outflows for income tax and interest paid.
To state:
The change that will arise in the value of cash flow from operations if there is change in salary expenses.
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Managerial Accounting
- Use a spreadsheet and the following financial information from Mineola Companys financial statements to build a template that automatically calculates the net operating cash flow. It should be suitable for use in preparing the operating section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Isthmus Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Swansea Companys financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.arrow_forward
- Use the following excerpts from Unigen Companys financial information to prepare the operating section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Dubuque Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following information from Albuquerque Companys financial statements to determine operating net cash flows (indirect method).arrow_forward
- Use the following information from Honolulu Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardUse the following excerpts from Tungsten Companys financial information to prepare a statement of cash flows (indirect method) for the year 2018.arrow_forwardList the three operating cash inflows that a company reports under the direct method.arrow_forward
- Use the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.arrow_forwardUse 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.arrow_forwardUse the following information from Acorn Companys financial statements to determine operating net cash flows (indirect method).arrow_forward
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