Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 16, Problem E16.18E
Classifying items on the indirect statement of
Learning Objectives 1, 2
The statement of cash flows categorizes like transactions for optimal reporting.
Identify each item as a(n):
- Operating activity—addition to net income (0+) or subtraction from net income (0-)
- Investing activity—
cash inflow (l+) orcash outflow (I-) - Financing activity—cash inflow (F+) or cash outflow (F-)
- Non-cash investing and financing activity (NIF)
- Activity that is not used to prepare the indirect statement of cash flows (N)
The indirect method is used to report cash flows from operating activities
- Loss on sale of land.
- Acquisition of equipment by issuance of note payable.
- Payment of long-term debt.
- Acquisition of building by issuance of common stock.
- Increase in Salaries Payable.
- Decrease in Merchandise Inventory.
- Increase in Prepaid Expenses.
- Decrease in Accrued Liabilities.
- Cash sale of land (no gain or loss).
- Issuance of long-term note payable to borrow cash.
- Depreciation Expense.
- Purchase of
treasury stock . - Issuance of common stock.
- Increase in Accounts Payable.
- Net income.
- Payment of cash dividend.
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Classifying items on the indirect statement of cash flows
The statement of cash flows categorizes like transactions for optimal reporting. Identify each item as a(n):
Operating activity—addition to net income (O+) or subtraction from net income (O–)
Investing activity—cash inflow (I+) or cash outflow (I–)
Financing activity—cash inflow (F+) or cash outflow (F–)
Non-cash investing and financing activity (NIF)
Activity that is not used to prepare the indirect statement of cash flows (N)
The indirect method is used to report cash flows from operating activities.
Loss on sale of land.
Acquisition of equipment by the issuance of note payable.
Payment of long-term debt.
Acquisition of building by the issuance of common stock.
Increase in Salaries Payable.
The decrease in Merchandise Inventory.
Increase in Prepaid Expenses.
The decrease in Accrued Liabilities.
Cash sale of land.
Issuance of long-term note payable to borrow cash.
Depreciation Expense.
Purchase of treasury stock.
Issuance of…
Classifying items on the indirect statement of cash flows
The statement of cash flows categorizes like transactions for optimal reporting. Identify each item as a(n):
• Operating activity—addition to net income (O+) or subtraction from net income (O–)
• Investing activity—cash inflow (I+) or cash outflow (I–)
• Financing activity—cash inflow (F+) or cash outflow (F–)
• Non-cash investing and financing activity (NIF)
• Activity that is not used to prepare the indirect statement of cash flows (N)
The indirect method is used to report cash flows from operating activities.
a. Loss on sale of land.
b. Acquisition of equipment by issuance of note payable.
c. Payment of long-term debt.
d. Acquisition of building by issuance of common stock.
e. Increase in Salaries Payable.
f. Decrease in Merchandise Inventory.
g. Increase in Prepaid Expenses.
h. Decrease in Accrued Liabilities.
i. Cash sale of land.
j. Issuance of long-term note payable to borrow cash.
k. Depreciation Expense.
l. Purchase of…
In which of the three activity categories of a statement of cash flows would each of the following items appear? Indicate for each item whether it represents a cash inflow or a cash outflow:
a. Cash purchase of equipmentb. Cash collection on loansc. Cash dividends paidd. Cash dividends receivede. Cash proceeds from issuing stockf. Cash receipts from customersg. Cash interest paidh. Cash interest received
Chapter 16 Solutions
Horngren's Accounting (12th Edition)
Ch. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Prob. 3QCCh. 16 - Prob. 4QCCh. 16 - Prob. 5QCCh. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QCCh. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15ARQCh. 16 - Prob. 16BRQCh. 16 - Prob. S16.1SECh. 16 - S16-2 Classifying items on the statement of cash...Ch. 16 - Prob. S16.3SECh. 16 - Prob. S16.4SECh. 16 - Prob. S16.5SECh. 16 - Prob. S16.6SECh. 16 - Prob. S16.7SECh. 16 - Prob. S16.8SECh. 16 - Prob. S16.9SECh. 16 - Prob. S16.10SECh. 16 - Preparing a statement of cash flows using the...Ch. 16 - Prob. S16A.12SECh. 16 - Prob. S16A.13SECh. 16 - Prob. S16A.14SECh. 16 - Prob. S16B.15SECh. 16 - Prob. E16.16ECh. 16 - Prob. E16.17ECh. 16 - Classifying items on the indirect statement of...Ch. 16 - Prob. E16.19ECh. 16 - Prob. E16.20ECh. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Prob. E16.22ECh. 16 - E16-23 Computing the cash effect Learning...Ch. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Identifying and reporting non-cash transactions...Ch. 16 - Prob. E16.26ECh. 16 - Prob. E16A.27ECh. 16 - Prob. E16A.28ECh. 16 - Computing cash flow items—direct method Learning...Ch. 16 - Prob. E16A.30ECh. 16 - Prob. E16B.31ECh. 16 - Prob. P16.32APGACh. 16 - Prob. P16.33APGACh. 16 - Prob. P16.34APGACh. 16 - Prob. P16.35APGACh. 16 - Preparing the statement of cash flows—direct...Ch. 16 - Prob. P16A.37APGACh. 16 - Prob. P16B.38APGACh. 16 - Prob. P16.39BPGBCh. 16 - Prob. P16.40BPGBCh. 16 - Prob. P16.41BPGBCh. 16 - Prob. P16.42BPGBCh. 16 - Prob. P16A.43BPGBCh. 16 - Prob. P16A.44BPGBCh. 16 - Prob. P16B.45BPGBCh. 16 - Prob. P16.46CTCh. 16 - Prob. P16.47CPCh. 16 - Prob. 16.1TIATCCh. 16 - Decision Case 16-1 Theater by Design and Show...Ch. 16 - Ethical Issue 16-1 Moss Exports is having a bad...Ch. 16 - Prob. 16.1FSC
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