Chapter 23: Q11Q (page 1392)
Question: Collinsworth Co. reported sales on an accrual basis of \(100,000. If accounts receivable increased \)30,000 and the allowance for doubtful accounts increased \(9,000 after a write-off of \)2,000, compute cash sales.
Answer
The business entity has cash sales of$68,000.
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Where can authoritative IFRS related to the statement of cash flows be found?
Question: Which of the following is true regarding the statement of cash flows under IFRS?
For purposes of the statement of cash flows, under IFRS interest paid is treated as:
Bloom Corporation had the following 2017 income statement.
Sales revenue | \(200,000 |
Cost of goods sold | 120,000 |
Gross profit | 80,000 |
Operating expenses (including depreciation of \)21,000) | 50,000 |
Net income | \(30,000 |
The following accounts increased during 2017: Accounts Receivable \)12,000, Inventory \(11,000, and Accounts Payable \)13,000. Prepare the cash flows from the operating activities section of Bloom’s 2017 statement of cash flows using the direct method.
Question: Stan Conner and Mark Stein were discussing the presentation format of the statement of cash flows of Bombeck Co. At the bottom of Bombeck’s statement of cash flows was a separate section entitled “Noncash investing and financing activities.” Give three examples of significant noncash transactions that would be reported in this section.
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