Explain How the Following Transactions Should Be Reported in the Statement

question 62

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. An increase in allowance for bad debts by $18,000.
2. A principal payment of $35,000 on a lease liability subsequent to the commencement date of the lease.

---

Definitions:

Research Design

The framework or plan for a study that guides the collection and analysis of data, crucial for ensuring the validity and reliability of research findings.

Leadership Research

An area of study focused on understanding the qualities, behaviors, and practices that make an effective leader.

Field Experiments

Research studies conducted in real-world settings to evaluate the outcomes of specific variables or interventions in their natural context.

Study of Leadership

An academic or practical investigation into the attributes, behaviors, and practices that make an effective leader, including theories and models of leadership.