Lid 155026 1courseid353214 M sgn In l McGraw unting Princ ls

Lid- 155026 1&course;_id-_353214. M s?gn In l McGraw-... unting Princ.. ls Writing GNMENTS Wiley Plus Sign-up or Login t g Bookshelf Online Q exam 1 Flashcard Remaining Time: 32 minutes, 55 [a] Identify the three major sections of the statement of cash flows. bl Under EACH major section, list THREE transactions that would be classified there on a Statement of Cash Flows ards REQUIRED: 2 Simplex Company wants to use the indirect method to report operating activity on its statement of cash flows. For the year 2018, the following information was made available: TOOLS $624,000 Net Income Depreciation & Amortization 2 Increase in inventories Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable 22,000 9,200 8,500 10,000 14,000 Help Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers

Solution

As per chegg guidelines when there are nmore than one question then we have to answer first question. a) Three major sections of statement of cashflows: Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities b) three transactions that would be classified there on statement of cashflows: Cash flow from operating activities is a section of the cash flow statement that provides information regarding the cash-generating abilities of a company\'s core activities. Examples of Cash flow from operating activities Cash Receipts from Customers Cash payments for Operating Expense Cash payment to suplliers Cash flow from investing activities is an item on the cash flow statement that reports changes resulting from amounts spent on investments in capital assets such as plant and equipment, investments. Examples of Cash flow from Investing activities Sale of invt Purchase of PPE Sale of PPE A category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital and repay investors, such as issuing cash dividends, adding or changing loans or issuing more stock. Example of Cash flow from Financing activities Issue of Stock Issue of additional Paid in capital Dividends Paid