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atch TV and movie https://www.myherb M Inbox (5,717) N Netflix h W al Exam The statement of cash flows reports Multiple Choice 015932 Assets, liabilities, and equity. Revenues, gains, expenses, and losses. Cash inflows and cash outflows for an accounting period. Equity, net income, and dividends. Changes in equity

Solution

Solution 1:

Statement of cash flows reports cash inflows and cash outflows for an accounting period. Hence 3rd option is correct.

Solution 2:

Activities that involves the production or purchase of merchandise and the sale of goods and services to customers including expenditure related to administering the business are classified as operating activities. Hence 3rd option is correct.

Solution 3:

The appropriate section in statement of cash flows for reporting the purchase of equipment for cash is \"Investing activities\"

Hence 3rd option is correct.

Solution 4:

Payment of cash dividend is reported in statement of cash flows under financing activities.

Hence 2nd option is correct.

Solution 5:

Hence 4th option is correct.

Statement of Cash Flows (Partial)
Particulars	Details	Amount
Cash Flow from Operating Activities:
Net Income	$133,000.00
Adjustments to reconcile net income to net cash flow from operating activitiess:
Depreciation	$34,500.00
Gain on sale of plant assets	-$8,500.00
Changes in current operating assets and liabilities:
Decrease in accounts receivables	$10,300.00
Increase in Merchandise Inventory	-$22,500.00
Increase in prepaid expenses	-$7,100.00
Increase in accounts payable	$4,300.00
Net cash flow from operating activities		$144,000.00