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Compute the gross margin ratio and net profit margin ratio.
Why are expenses such as depreciation and amortization added to net income when cash flow from operating activities is computed by the indirect method?
Equipment costing $80,000 with accumulated depreciation of $30,000 is sold at a loss of $10,000.
Net sales in a period are $590,000, beginning accounts receivable are $120,000, and ending accounts receivable are $90,000.
What is the reporting purpose of the statement of cash flows? Identify at least two questions that this statement can answer.
When a statement of cash flows is prepared using the direct method, what are some of the operating cash flows?
If a company reports positive net income for the year, can it also show a net cash outflow from operating activities? Explain.
Classify the cash flows as operating, investing, or financing activities.
Describe the content and layout of a statement of cash flows, including its three sections.
The income statement reports depreciation expense for the year of $36,000. Also, furniture costing $105,000 was sold for its book value.
Compute the cash received from the sale of its common stock during 2011.
For each of the separate cases, compute cash flows from operations.
Where on the statement of cash flows is the payment of cash dividends reported?
What are some investing activities reported on the statement of cash flows?
Acquisitions of furniture total $44,000 cash, on which no depreciation is necessary because it is acquired at year-end.
Assume that no additional notes payable are issued in 2011. What cash amount is paid to reduce the notes payable balance in 2011?
How much cash is received from sales to customers for year 2011?
How much cash is paid to acquire merchandise inventory during year 2011?
Which method, indirect or direct, is acceptable for reporting operating cash flows under IFRS?
Prepare only the operating activities section of the statement of cash flows for 2011 using the indirect method.
Use the indirect method to compute cash flow from operating activities.
Use the information provided about the calendar-year 2012 operations of Sahim Company to compute the required cash flow information.
Describe the indirect method of reporting cash flows from operating activities.
Use the information about the cash flows of Kansas Company to prepare a complete statement of cash flows for the year ended December.
What were the major reasons that this company was able to report a net loss but positive cash flow from operations?