Classification of Cash Flows (Indirect Method)

question 44

Essay

Classification of cash flows (indirect method)
Note that X in the following statement of cash flows identifies a dollar amount and the letters (A) through (F) identify specific items, which appear in the major sections of the statement of cash flows prepared using the indirect method. Instructions
For each of the following items, indicate by letter in the blank spaces below, the section or sections where the effect would be reported assuming the company follows ASPE. Use the code (A through F) from above. If the item is not required to be reported on the statement of cash flows, write the word "none" in the blank. Assume that generally accepted accounting principles have been followed in determining net income and that there are no temporary investments which are considered cash equivalents.
1. Issued preferred shares in exchange for equipment.
2. Accounts receivable increased by $ 60,000.
3. Accrued estimated income taxes for the year.
4. Amortization of premium on bonds payable.
5. Purchase of long-term investment.
6. The book value of FV-NI investments was reduced to fair value.
7. Declaration of stock dividends.
8. Bad debts expense recorded (company uses the allowance method).
9. Gain on disposal of old machinery.
10. Declaration and payment of cash dividends.
11. FV-NI investments sold at a loss.

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Definitions:

Adherent Patient

Refers to a patient who closely follows the treatment plan prescribed by their healthcare provider.

Compliant

Indicates adherence or conformity to a rule, standard, or law.

Adherence Rates

The extent to which individuals follow their prescribed medical treatment plans, diets, or exercise regimens.

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, often leading to cardiovascular diseases.