(a)
Cash Flow Statement:
Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the
In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve
To provide: The formula under the direct method for computing cash receipts from customer.
(b)
To provide: The formula under the direct method for computing cash payments to suppliers.
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Managerial Accounting: Tools for Business Decision Making
- . Provide the cash receipts and cash payments two examples which are fit into the following classifications. Operating activities. Investing activities. Financing activities.arrow_forwardGive two examples of cash receipts and two examples of cash payments that fit into each of the following classifications: Operating activities. Investing activities. c. Financing activities.arrow_forwardWhich of the following balance sheet items are commonly associated with the purchases and cash disbursements cycle? A Inventory and accounts payable B Purchases and accounts receivable C Cash paid to vendors D Cash received from the sale of inventoryarrow_forward
- Which of the following is most likely to appear in the operating section of a cash fl ow statement under the indirect method? C . Cash received from customers.arrow_forwardWhich is an appropriate method of preparing a common-size cash fl ow statement? B . Show each line item on the cash fl ow statement as a percentage of net revenue.arrow_forwardThe time between cash disbursement and cash collection is which of the following? A- accounts payable period B- cash cycle C- operating cycle D- accounts receivable periodarrow_forward
- describe the steps in the preparation of direct and indirect cash fl ow statements, includinghow cash fl ows can be computed using income statement and balance sheet data;arrow_forwardWhich of the following is a means of using receivables to obtain immediate cash? a. Factoring b. Pledging c. Assignment d. All of the abovearrow_forward
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