For Each of the Following Items, Indicate (By Placing an X)

question 63

Essay

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows.
- $$\begin{array} { | l | c | c | c | c | } \hline & \begin{array} { c } \text { Col 1 } \\\text { Operating } \\\text { Direct }\end{array} & \begin{array} { c } \text { Col 2 } \\\text { Operating } \\\text { Indirect }\end{array} & \begin{array} { c } \text { Col 3 } \\\text { Investing }\end{array} & \begin{array} { c } \text { Col 4 } \\\text { Financing }\end{array} \\\hline \text { Net loss } & & & & \\\hline\end{array}$$

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Definitions:

Year 3 Dollars

A term used to adjust financial figures according to inflation or deflation, making them comparable to the value of money in the third year of a specific reference period.

Food Expenditures

The amount of money spent by households or individuals on food products, either at home or in dining establishments.

Nominal Box Office Receipts

The total amount of money earned from ticket sales for movies at theaters, not adjusted for inflation.

Prices

The cash amount predicted, necessary, or offered as compensation for something.