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Unformatted text preview: D (DursasstraightarlinaLDm/lessunSlAccuuntmgilllapubireadarlfibuukr..flupiMopicfifirepubpagartemplatesfteachsueanimhulftaa(hscraenimhulgizffl xhtml , Google Chrome 7 X D'epubJeader/slbook-ultopicsflopi(,0S-epubpage-templates/teachscreemmhol/teachscreemmho|33267.xhtm| Summary Table of Adjustments to the Cash Flows from Operating Activities Here is atable that can assist you in making adjustments to the cash flow from operating activities section ofthe statement of cash flows, Our adjustments' elfect on cash flow: —_—— .mmmmt — DomsahAnmunlsRaueiwwla' manage-mm Decrease-mm ImaaaehtPrqxaidExpmse Dammigrfiapn‘odExpm immmmm Payaflaendminrpayablns Dams inAnwmtsPaynb'leanddtmpayaflas W'MB Gainnnfilnufafisels 'Lossmsahnfassets Guinnnmtimmntofbmddabt WSMWDFWW Now let's look at cash flows from investing Jarvixn'ph,‘ I} coursesmaigalaninecormiessonsiAccountngilepub_r=aear/ebookr..mpi5/ropic_usrepubpagstempiates/teacnscrean_mhomea:iiscreemmhoizsztaixhtmi , Goagle Chrome — >< D|l,lepub_reader/#booke../topics/Topic_057epubpagertemplates/teachscreen_mhol/teachscreen_mho|33276.xhtml Cash Flows from Investing Activities Investments include nonecurrent assets and current securities that are not considered cash equivalents. Because there are no securities on the MH balance sheet, we will look at nun-current assets. The only nonecurrent assets on the MH balance sheet are the office equrpment and its associated depreciation. AnalyZing these accounts, we see that the office equrpment increased by $2,000 and the accumulated depreciation increased by $3,000 Because we have already adjusted the depreciation in the cash flows from operating activities section, we will only adjust for the purchase of new eqmpment, The effect on the cash flows from investing l5 __—— rmmmm —— magma —— Now let's look at the cash flows from investing section of the statement of cash flows. D (oursesstraighteriina.(um/ie§suns{AC(uuntingiillepubiraaderlgbuukr..flupiMopl(7051lebpagartemplatesfteachSUEEanhul/taa(hsueenimimiEESS xhlmi , Goggle Chrome 7 X D'epLIbJeader/#book-../topicsflopi(,05-epubpage-templates/teachscreen,mhOI/teachscreemmho|33285.xhtml 25 Of“ Raialnaci earnings went up $500 this period. Hammer, net Income was $5,100. The difference between lhaaa lwa numb-Ia ($4,600) gives us the dislribuiad nat Income (cash dividends paid). Dividends paid reduces our cash flow from financing because we are paying out cash. Common slack increased by $2.00Ei‘ This increases our cash lloav from investing because we received cash forlhe slack. Relirerrlent of slack decreases our cash flow. How will slack Guidends aired ll'Ie cash loans from financing sedion oflhe rash llmus slalemenl? “intkdiwden - .m hanged by dividen ' ' nuie stifle bulk-m mine ...
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