Howard Company Uses the Direct Method to Prepare Its Operating

question 32

Essay

Howard Company uses the direct method to prepare its operating activities section of the statement of cash flows.
Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate that the income statement is not affected. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate that the cash flow statement is not affected.
On September 10, Year 1, Howard Company received a check for $250 for dividends on Troxell Corporation stock that Howard holds as an investment. Show the effects of this transaction on Howard's income statement and statement of cash flows.

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Definitions:

Agent

An individual or entity that acts on behalf of another, in various contexts such as sociology, espionage, or business transactions.

Hidden Curriculum

involves the unwritten, unofficial, and often unintended lessons, values, and perspectives that students learn in school.

Socialized Citizen

An individual who has been inculcated with the norms, values, and practices of a society, enabling them to function as a contributing member.

Primary Socialization

The early process by which individuals, typically in their childhood, learn and adopt the values, behaviors, and norms of their society or cultural group.