HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
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Question
Chapter 14, Problem 6RQ
To determine
Statement of
Indirect method: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.
The below table shows the way of calculation of cash flows from operating activities:
Cash flows from operating activities (Indirect method) |
Add: Decrease in current assets |
Increase in current liability |
Depreciation expense and amortization expense |
Loss on sale of plant assets |
Deduct: Increase in current assets |
Decrease in current liabilities |
Gain on sale of plant assets |
To Describe: The five steps used to prepare the statement of cash flows by the indirect method.
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Describe the five steps used to prepare the statement of cash flows by the indirect method.
Identify and briefly explain the four sections shown in the statement of cash flows.
Briefly describe the four steps outlined in the text for preparing a statement of cash flows.
Chapter 14 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 14 - The purposes of the statement of cash flows are to...Ch. 14 - The main categories of cash flow activities are a....Ch. 14 - Operating activities are most closely related to...Ch. 14 - Which item does not appear on a statement of cash...Ch. 14 - Leather Shop earned net income of 57,000 after...Ch. 14 - The Plant Assets account and Accumulated...Ch. 14 - Mountain Water Corp. issued common stock of 28,000...Ch. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - If accrued liabilities increased during the year,...
Ch. 14 - Prob. 1RQCh. 14 - How does the statement of cash flows help users of...Ch. 14 - Describe the three basic types of cash flow...Ch. 14 - What types of transactions are reported in the...Ch. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Explain why depreciation expense, depletion...Ch. 14 - Prob. 8RQCh. 14 - If current assets other than cash increase, what...Ch. 14 - If current liabilities increase, what is the...Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15ARQCh. 14 - Prob. 16BRQCh. 14 - Describing the purposes of the statement of cash...Ch. 14 - Prob. 14.2SECh. 14 - Classifying items on the indirect statement of...Ch. 14 - Classifying cash flow items Consider the following...Ch. 14 - Prob. 14.17ECh. 14 - Prob. 14.18E
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Similar questions
- EXPLAIN FOUR ITEMS COVERED UNDER FINANCING ACTIVITIES IN THE STATEMENT OF CASH FLOWS?arrow_forwardBriefly state the purposes of a statement of cash flows.arrow_forwardA worksheet for the statement of cash flows consists of two sections: A. cash effects and non-cash effects B. cash effects and net income C. balance sheet effects and non-cash effects D. balance sheet effects and cash effectsarrow_forward
- List the components of the statement of cash flows.arrow_forwardIdentify and briefly explain the three categories of activities in thestatement of cash flows.arrow_forwardWhat are the three major types of activities classified on a statement of cash flows? Give an example of a cash inflow and a cash outflow in each classification.arrow_forward
- Describe the three basic types of cash flow activities.arrow_forwardWhat are the three major sections on a statement of cash flows, and what are the general rulesthat determine the transactions that should be included in each section?arrow_forwardClassifying transactions on the statement of cash flows—indirect method Consider the following transactions: Identify the category of the statement of cash flows in which each transaction would be reported.arrow_forward
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