For Each of the Following Items, Indicate (By Placing an X)

question 95

Essay

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows.
- $$\begin{array} { | l | c | c | c | c | } \hline & \begin{array} { c } \text { Col 1 } \\\text { Operating } \\\text { Direct }\end{array} & \begin{array} { c } \text { Col 2 } \\\text { Operating } \\\text { Indirect }\end{array} & \begin{array} { c } \text { Col 3 } \\\text { Investing }\end{array} & \begin{array} { c } \text { Col 4 } \\\text { Financing }\end{array} \\\hline \text { Increase in inventory } & & & & \\\hline\end{array}$$

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Definitions:

Foreign Corporations

Businesses that are incorporated in one country but are registered to do business in other countries outside of their home jurisdiction.

Merger

A combination of two or more corporations in which only one of the corporations continues to exist.

Shareholder Approval

The consent given by shareholders, usually through a voting process, for certain decisions or actions proposed by a company's management or board.

Consolidation

The process of combining two or more entities into one, often to streamline operations and reduce costs.