Explain How the Following Transactions Should Be Reported in the Statement

question 30

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 payment of $35,000 on an operating lease.

---

Definitions:

Subjective Norms

Subjective norms refer to an individual's perception of social pressure to perform or not perform a particular behavior.

Perceived Behavioral Control

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Perceived Behavioral Control

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Behavioral Intention

A person's predisposition towards performing a certain action, influenced by personal attitudes and societal norms.