Explain How the Following Transactions Should Be Reported in the Statement

question 57

Essay

Explain how the following transactions should be reported in the statement of cash flows, assuming the indirect method is used to determine cash flows from operating activities. Identify all available options. If not reported on the statement of cash flows, indicate the disclosure requirements, if any.
1. Income tax expense of $30,000. The income tax payable account increased $7,000, while the deferred income tax liability account decreased $9,000.
2. Cash dividend of $40,000 declared. The dividends payable account increases $25,000.

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Definitions:

Analytic Unit

The element or entity that is being analyzed or examined in a study or research project.

Speaking Model

A framework or conceptual model that outlines the key components and processes involved in effective oral communication.

Key

In Hymes’s ethnography of communication, the tone of speech or how the speech sounds—for example, formal or friendly.

Structural

Pertaining to the configuration or physical makeup of something, often reference to its construction or organization.