Complete each of the columns on the table below, indicating in which section each item would be reported on the statement of cash flow (Operating, Investing, or Financing), the amount that would be reported, and whether the item would create an increase or decrease in cash. For item that affect more than one section of the statement, indicate all affected. Assume the indirect method of reporting cash flows operating activities.
The first item has been completed as an example.
Definitions:
Economics
The social science that studies the production, distribution, and consumption of goods and services.
Total Utility
The total satisfaction or pleasure a person derives from consuming a specific quantity of goods or services.
Risk-Averse
Describes individuals who choose to reduce risk when that reduction leaves the expected value of their income or wealth unchanged.
Income Curve
The income curve, in economics, typically relates to a graphical representation showing how a change in income affects consumption or purchasing patterns of individuals or households.
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