The Cash Flows from Operating Activities Are Reported by the Direct

question 118

Short Answer

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:
a.If accrued expenses showed $50,000 on the income statement and payables increased from $15,000 to $18,500 on the balance sheet,what was the amount of cash paid?
b.If insurance expense showed $10,000 on the income statement and Prepaid Insurance increased from $10,000 to $12,000 on the balance sheet,what was the amount of cash paid for insurance?

---

Definitions:

Idea Generation

The process of creating, developing, and communicating new concepts or solutions.

Innovation Process

A systematic approach that involves the generation, development, and implementation of new ideas, products, or services to create value or solve a problem.

Problem-Solving

The process of identifying a problem, generating possible solutions, and implementing a solution to address the issue.

Problem-Solving

The process of identifying solutions to specific issues that are typically obstacles to reaching one’s goal.