Use the Selected Data from the Consolidated Statements of Cash

question 158

Essay

Use the selected data from the consolidated statements of cash flows for Vancouver Corporation for the years ended December 31,2014 and 2013,to answer the questions that follow.
REQUIRED:
(A)What method does Vancouver use to calculate the net cash provided by operating activities?
(B)In 2014,why are depreciation and amortization expenses added back to net income in the operating activities section of the statement of cash flows?

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Definitions:

Cash Short

A situation where the recorded amount of cash does not match the actual amount of cash available, often indicating errors or theft.

Cash Over

A situation where the amount of cash on hand is more than what was expected or reported, often requiring investigation.

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, controlled through a fund system to manage small business transactions.

Auxiliary Petty Cash Record

A detailed log used to track the small transactions handled through a petty cash fund, aiding in the reconciliation and management of petty cash.