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Formula for "cash collected from customers" in preparing for statement of cash flow under operating is?

Sales - [Ending AR - (Beg AR - Write-offs)] = Collections

Purchase of Bonds are included in what section of the cash flow statement?

Investing Activity

Financing activities include all cash flows involving (?) other than (?) Items?

Liabilities and owner's equity other than operating items.

Are cash inflows and cash outflows netted together on Statement of Cash Flows?

No - as seprate cash receipt or cash payments

Is the purchase of cash equivalent using cash reported on the statement of cash flows?

No - purchase of cash equivalent using cash is NOT an outflow of cash and therefore does not get reported on Statement of cash flows.

In a lease obligation the interest payments go to what section of the statement of cash flow?

Operating Activity

Where would the collection of dividends be classified on the Statement of Cash Flows?

Operating Activity

Investing activities include all cash flows involving assets, other than?

Operating items

Formula for "cash paid for interest" in preparing for statement of cash flow under operating is?

Interest expense - Discount amortization = Cash paid

Formula for "cash paid for goods to be sold" in preparing for statement of cash flow under operating is?

CGS + (End. Inv. - Beg. Inv.) - (End. AP - Beg. AP) = Cash Paid

The cash inflow from the sale of equipment is recorded as?

Carrying amount plus the gain

What items are included in operating activities on the Statement of Cash Flows?

Cash received from Customers, Interest & Dividends, Trading Securities Cash paid to Vendors, Suppliers, Interest, Taxes, Trading Securities

What items are included in Financing Activities in a Statement of Cash Flows?

Cash received: Issuance of Stock, Issuance of Debt Cash paid: Dividends

What items are included in investing activities on a Statement of Cash Flows?

Cash received: Sale of PP&E, Sale of Investments, Loan Principle Cash paid: Loans, Acquisitions, AFS or HTM Securities, Taxes, Trading Securities

[Direct Method] Payments for Purchases (Inventory increased by 30 and A/P increased by 20. COGS is 200) The entry would be?

Dr. COGS 200 Dr. Inventory (change) 30 Cr. A/P (change) 20 Cr. Cash 210 (plug)

[Direct Method] Cash collected from Customers (A/R increased by 80. Sales is 600) The entry would be?

Dr. Cash (plug) 520 Dr. A/R (change in A/R) 80 Cr. Sales 600

[Direct Method] Gain on sale of investment-Assume an Available-for-sale investment that had an original cost of $50, was sold for $60. The cash proceeds would be considered an Investing activity, so the gain is a non-opeerating gain and should not be part of Operating activities. The entry would be?

Dr. Cash 60 Cr. Investment 50 (cost) Cr. Gain on Sale of AVS 10

[Direct Method] Payments for G&A expense 40 The entry would be?

Dr. G&A 40 Cr. Cash 40

[Direct Method] Income tax expense (deferred tax liability decreased by 10, taxes payable increased by 40, and income tax expense is 60) The entry would be?

Dr. Income tax expense 60 Dr. Deferred tax liability 10 Cr. Income taxes payable 40 Cr. Cash (plug)

[Direct Method] Interest expense (amortization of discounts or premiums changed by 5, interest expense is 30) The entry would be?

Dr. Interest expense 30 Cr. Amortization of discount 5 Cr. Cash 25 (plug)

[Direct Method] Payments for Selling expenses (Allowance for bad debts increased by 20, bad debts 100 is considered a selling expense) The entry would be?

Dr. Selling expenses 100 Cr. Allowance for uncollectibel receivables 20 Cr. Cash 80

In a lease obligation the principal payments go to what section of the statement of cash flow?

Financing Activity

Proceeds from sale of treasury stock is included in what section of the cash flow statement?

Financing Activity

[Direct Method] Depreciation expense

Ignore, no effect on cash

Formula for "cash paid for income taxes" in preparing for statement of cash flow under operating is?

Inc tax exp. - [(End. Inc. tax payable - Beg inc. tax payable) - (End. Def. tax liability - Beg def. tax liability) = Cash Paid for inc. tax

What is the direct method for a Statement of Cash Flows?

Starts with Income from Continuing Operations Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses If used, the Indirect Method must also be shown

What is the Indirect Method for a Statement of Cash Flows?

Starts with Net Income Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses

What is the primary purpose of statement of cash flows?

To provide relevant information about the enterprise's cash receipts and cash payments during a period