Dmitri Company reported the following changes in the balance sheet accounts between Year 1 and Year 2.
Assume that there were no sales of equipment and that no dividends were declared or paid.

Required:

Given the changes in the balance sheet for Year 2, state:
a. whether the change in each account indicates that an addition or subtraction needs to be made to determine cash flow, and
b. in what section of the statement of cash flows the adjustment would appear. Indicate if no adjustment is necessary.

Question

Dmitri Company reported the following changes in the balance sheet accounts between Year 1 and Year 2.
  Assume that there were no sales of equipment and that no dividends were declared or paid.

Required:

Given the changes in the balance sheet for Year 2, state:
a.	whether the change in each account indicates that an addition or subtraction needs to be made to determine cash flow, and
b.	in what section of the statement of cash flows the adjustment would appear. Indicate if no adjustment is necessary.

Quizplus · Accepted Answer

The Answer of Dmitri Company reported the following changes in the balance sheet accounts between Year 1 and Year 2.
  Assume that there were no sales of equipment and that no dividends were declared or paid.

Required:

Given the changes in the balance sheet for Year 2, state:
a.	whether the change in each account indicates that an addition or subtraction needs to be made to determine cash flow, and
b.	in what section of the statement of cash flows the adjustment would appear. Indicate if no adjustment is necessary.

Dmitri Company Reported the Following Changes in the Balance Sheet