1.06 STATEMENT OF CASH FLOWS

Question 1

Operating Activities

Answer 1

Inflows: Dividends received, Interest Received, cash from customers, disposal of trading securities

Outflows: to suppliers, to employees, interest paid, income taxes, acquisition of trading securities

Question 2

Investing Activities

Answer 2

loans to others/principal collections, investments in other company stocks, intangibles, buy or sell PPE (include capital repairs)

Question 3

Financing Activities

Answer 3

borrowing and paying back, issuing or repurchasing equity, dividends paid

Question 4

Net Cash from Operating Activities

Answer 4

+ Depreciation
+ Amortization Exp
+ Losses
- Gains
- Amortization of Bond Premium
- Dividends Received
Changes in CA (add/subtract in opposite direction of change)
Changes in CL (add/subtract in same direction of change)

Question 5

Equity Method

Answer 5

owns 20 - 50%

Question 6

Cash Equivalent

Answer 6

original maturity is 3 months or less away from date of purchase

Question 7

Acquiring debt instruments of other entities that will be held to maturity

Answer 7

Investing

Question 8

Sale of property plant and equipment

Answer 8

Investing

Question 9

Deferred income tax liability

Answer 9

Operating (same sign)

Question 10

Amortization of bond premium

Answer 10

Operating deduction

Question 11

Loss on asset

Answer 11

Operating addition

Question 12

Gain on asset

Answer 12

Operating deduction

Question 13

Deprecation expense

Answer 13

Operating addition

Question 14

Amortization expense

Answer 14

Operating addition

Question 15

Equity in earnings from investee

Answer 15

Operating deduction

Question 16

Deferred income tax expense

Answer 16

Operating addition

Question 17

Issuing equity instruments

Answer 17

Financing

Question 18

What type of amounts are not reported because they are not cash flows?

Answer 18

Carrying amounts

Question 19

Cash retained from excess tax benefits

Answer 19

Financing addition

Question 20

Principal payments on notes payable

Answer 20

Financing

Question 21

Acquisition of another company’s stock

Answer 21

Investing

Question 22

Interest paid

Answer 22

Operating

Question 23

Allowance for credit losses

Answer 23

Operating (same sign)

Question 24

Dividends received

Answer 24

Operating

Question 25

Dividends paid

Answer 25

Financing

Question 26

What is not disclosed as supplemental information

Answer 26

Cash flow per share