(a) Introduction: Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid. To state: Cash flows from operating activities under direct method.

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Answer 1

Question

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

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I am needing help with the following question. I have attached a photo below. Jasneet Corporation’s comparative balance sheet for current assists and liabilities was as follows: (See attached photo) Adjust net income of $185,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities.

The statement of cash flow consists of three main activities, as follows: OperatingInvestingFinancingEach section provides the reader with details on where the cash came from and where the cash went.How dcan you present an argument for which cash flow statement activities are the most pertinent for the external evaluation of a company?

Suppose your company sells services of $180 in exchange for $110 cash and $70 on account.Required:1. Show the journal entry to record this transaction.2. Identify the amount that should be reported as net cash flow from operating activities.3. Identify the amount that would be included in net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?

Answer 2

Question

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

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Answer 3

Question

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

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Answer 4

Question

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

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Answer 5

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

Answer 6

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

Answer 7

Chapter 12, Problem 20E

To determine

(a)

Introduction:

Direct method is used to record cash flows from operations. It includes Cash flows arising from collections of cash from the customers and payments of cash to suppliers, employees and others. It also includes cash outflows related to income tax and interest paid.

To state:

Cash flows from operating activities under direct method.

Answer 8

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

Answer 9

2.

To determine

Introduction:

Cash flow from operations measure cash flows related to day-to-day activities. Operating income and operating expenses for the year forms the part of operating activities. It includes cash flows related to buying and selling of goods and services.

To state:

Despite net loss, how was the company able to report positive cash flows from operations.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

Solution Summary: The author explains that direct method is used to record cash flows from operations. It includes cash outflows related to income tax and interest paid.

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Chapter 12 Solutions