Chapter 14: Q14-11RQ (page 769)
Question: What accounts on the balance sheet must be evaluated when completing the investing activities section of the statement of cash flows?
Answer
Investing activity records transactions related to long-term assets and long-term note receivables.
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Question: Computing cash flows from investing and financing activities Use the data in Short Exercise S14-5 to complete this exercise. Prepare Winding Road Cellular’s statement of cash flows using the indirect method for the year ended April 30, 2018. Assume beginning and ending Cash are \(48,000 and \)52,200, respectively.
Question: Muench, Inc.’s accountant has partially completed the spreadsheet for the statement of cash flows. Fill in the remaining missing information.
Question: What does the statement of cash flows report?
Computing operating activities cash flow—indirect method
The accounting records of CD Sales, Inc. include the following accounts: Account Beginning Balance Ending Balance Cash \( 7,500 \) 6,500 Accounts Receivable 21,000 17,500 Merchandise Inventory 20,000 30,000 Accounts Payable 15,000 19,000 Accumulated Depreciation— Equipment
2,000 Depr. Exp.
56,000 Jul. 1
58,000 Jul. 31
Retained Earnings
Dividends 15,000
63,000 Jul. 1
50,000 Net Inc.
98,000 Jul. 31
Compute CD’s net cash provided by (used for) operating activities during July 2018. Use the indirect method.
Using a spreadsheet to prepare the statement of cash flows—indirect method Use the Boost Plus, Inc. data in Exercise E14-21 to prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method.
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