![]() ![]() (a) cash receipts from customers and (b) cash payments to suppliers. Give the formulas under the direct method for computing Describe the direct method for determining net cash provided by Why is the statement of cash fl ows useful? Why and how is depreciation expense reported in a statementġ5. Why is it important to disclose certain non-cash transactions?ġ4. What are the major uses (outfl ows) of cash?ĥ. What are the major sources (infl ows) of cash in a statement ofī. Distinguish among the three types of activities reported in theĤ. What questions about cash are answered by the statement of cashģ. Nick Johns maintains that the statement of cash fl ows is an Note: All asterisked Questions, Exercises, and Problems relate to material in the appendices to the chapter.ī. Which method is preferred by the IASB? Which method is more Distinguish between the direct and indirect methods of prepar. Position, a current income statement, and certain transaction data inĨ. Why is it necessary to use comparative statements of fi nancial ![]() Of signifi cant non-cash transactions that would be reported in thisħ. “Non-cash investing and fi nancing activities.” Give three examples Tom of Saltwater Candy’s statement of cash fl ows was a note entitled Mat of the statement of cash fl ows of Saltwater Candy Co. Wilma Flintstone and Barny Rublestone were discussing the for. **Computation of cash payments for operatingĭeduct: Loss on disposal of plant assets 24,Ĭash payments for operating expenses €4,843,Ħ. *Computation of cash collections from customers:ĭeduct: Increase in accounts receivable 165, Net cash used by fi nancing activities (200,000) Net cash used by investing activities (480,000) Net cash provided by operating activities 1,222, Statement of Cash Flows-Direct Method For the Year Ended December 31, 2020Ĭash collections from customers €6,418,000*
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