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inflows from operating activities come from
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The correct answer is (c) collection of sales revenue.
Because, sales revenue is an operating activity and it is also an inflow.
The other choices are not correct and are not relevant because,
(a) Payment for raw materials is although an operating activity but it involves cash out flow but not inflow.
(b) Gain on sale of operating equipment is not an operating activity but it is an investing activity.
(d) Issuing capital stock is a financing activity though it involves a cash inflow.
(e) Issuing bonds is a financing activity though it involves a cash inflow.
Thus the correct option is (c)
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of cash include
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The correct answer is (e) only a and c.
Because, (a) cash dividends, is a cash outflow in financing activity.
(c) The purchase of long-term assets is a cash outflow in investing activity.
The other choices are not correct and are not relevant because,
(b) The sale of old equipment is a cash inflow and it is a sources of cash in investing activity.
Thus the correct option is (e)
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computing the period's net operating cash flows, why are increases in current liabilities and decreases in current assets added back to net income?
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Reasons for the adding the increases in liabilities and decreases in current assets added back to the net income while computing net operating cash flows:
While computing net operating cash flows the increases in current liabilities are to be added back to the net income because there is no cash outflow during the period and the amount remains as liquid cash regarding that particular liability. The decrease in current assets are added back to the net income because when there is decrease in any current asset which results in cash inflows into the company unless there is an exchange for the same for the other current asset.
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Explain how a company can report a loss and still have a positive net operating cash flow.
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increase in inventories is deducted from net income to arrive at operating cash flow because
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Explain the all-financial-resources approach to reporting financing and investing activities.
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computing the period's net operating cash flows, why are decreases in liabilities and increases in current assets deducted from net income?
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is it better to report the noncash investing and financing activities in a supplemental schedule rather than to include these activities on the body of the statement of cash flows?
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activity format calls for three categories on the statement of cash flows. Define each category.
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increase in accounts receivable is deducted from net income to obtain operating cash flows because
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difference between the beginning and ending cash balances shown on the balance sheet
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Which of the following adjustments helps to convert accrual income to operating cash flows?
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the three categories on the statement of cash flows, which do you think provides the most useful information? Explain.
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Explain how a company can report a positive net income and yet still have a negative net operating cash flow.
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Which of the following adjustments to net income is needed to obtain cash flows?
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are the five steps for preparing the statement of cash flows? What is the purpose of each step?
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are cash equivalents? How are cash equivalents treated in preparing a statement of cash flows?
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