Chapter 12, Problem 21QS

a.

To determine

Introduction: Cash Flow Statement shows the inflow, outflow, and flow of cash and cash equivalents during the accounting period generated through operating, investing, and financing activities. The cash flow from operating activities identifies the movement of cash from or by the operating activities carried out by the business. The cash flow from investing activities identifies the sale and purchase of fixed assets and long-term assets. The cash flow from financing activities identifies the change in long-term finance.

To find: The effect of a decrease in accounts payable on cash flow statement.

b.

To determine

Introduction: Cash Flow Statement shows the inflow, outflow, and flow of cash and cash equivalents during the accounting period generated through operating, investing, and financing activities. The cash flow from operating activities identifies the movement of cash from or by the operating activities carried out by the business. The cash flow from investing activities identifies the sale and purchase of fixed assets and long-term assets. The cash flow from financing activities identifies the change in long-term finance.

To find: The effect of Payment of cash dividends on cash flow statement.

c.

To determine

Introduction: Cash Flow Statement shows the inflow, outflow, and flow of cash and cash equivalents during the accounting period generated through operating, investing, and financing activities. The cash flow from operating activities identifies the movement of cash from or by the operating activities carried out by the business. The cash flow from investing activities identifies the sale and purchase of fixed assets and long-term assets. The cash flow from financing activities identifies the change in long-term finance.

To find: The effect of Increase in accounts receivable on cash flow statement.

d.

To determine

Introduction: Cash Flow Statement shows the inflow, outflow, and flow of cash and cash equivalents during the accounting period generated through operating, investing, and financing activities. The cash flow from operating activities identifies the movement of cash from or by the operating activities carried out by the business. The cash flow from investing activities identifies the sale and purchase of fixed assets and long-term assets. The cash flow from financing activities identifies the change in long-term finance.

To find: The effect of loss on sale of machinery on cash flow statement.

e.

To determine

Introduction: Cash Flow Statement shows the inflow, outflow, and flow of cash and cash equivalents during the accounting period generated through operating, investing, and financing activities. The cash flow from operating activities identifies the movement of cash from or by the operating activities carried out by the business. The cash flow from investing activities identifies the sale and purchase of fixed assets and long-term assets. The cash flow from financing activities identifies the change in long-term finance.

To find: The effect of Net income on cash flow statement.

f.

To determine

Introduction: Cash Flow Statement shows the inflow, outflow, and flow of cash and cash equivalents during the accounting period generated through operating, investing, and financing activities. The cash flow from operating activities identifies the movement of cash from or by the operating activities carried out by the business. The cash flow from investing activities identifies the sale and purchase of fixed assets and long-term assets. The cash flow from financing activities identifies the change in long-term finance.

To find: The effect of the increase in interest payable on the cash flow statement.