Statement Of cashflows

Question 1

Is nontrade notes payable an operating item?

Answer 1

No

Question 2

What’s the net cash from operating activities? A/R incr 20k, equip gain on sale 10k, PP ins. Incr 40k ,A/P incr 30k. Net income 70k. Non trade notes payable 50k

Answer 2

40k

Question 3

Should a gain on the sale of a long term investment be deducted from income from continuing operations in the statement of cashflows?

Answer 3

Yes

Question 4

Does a decrease in inventory increase operating cashflows?

Answer 4

Yes. It indicates purchases were less than COGS.

Question 5

Is equipment purchased with a note payable included on the Stmt of cashflows?

Answer 5

No. It is a non cash financing and investing activity, disclosed outside the statement of cashflows.