Chapter 4 The Income Statement and Statement of Cash Flows35

Chapter 4 The Income Statement and Statement of Cash Flows35

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Exercise 4-17 Cash collected for interest, considered an operating cash flow by U.S. GAAP, could be classified as either an operating cash flow or an investing cash flow according to International Accounting Standards. Cash paid for interest, considered an operating cash flow by U.S. GAAP, could be classified as either an operating cash flow or a financing cash flow according to International Accounting Standards. Cash paid for dividends, considered a financing cash flow by U.S. GAAP, could be classified as either an operating cash flow or a financing cash flow according to International Accounting Standards. Accordingly, the statement of cash flows prepared according to IFRS could be the same as under U.S. GAAP (E4-16) or could be presented as follows: Bluebonnet Bakers Statement of Cash Flows
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Unformatted text preview: For the Year Ended December 31, 2011 Cash flows from operating activities: Collections from customers $ 380,000 Purchase of inventory (160,000) Payment of salaries (90,000) Payment of dividends (20,000 ) Net cash flows from operating activities $110,000 Cash flows from investing activities: Collection of note receivable 50,000 Interest on note receivable 6,000 Sale of investments 30,000 Purchase of equipment (85,000 ) Net cash flows from investing activities 1,000 Cash flows from financing activities: Proceeds from note payable 100,000 Payment of note payable (25,000) Interest on note payable (5,000 ) Net cash flows from financing activities 70,000 Net increase in cash 181,000 Cash and cash equivalents, January 1 17,000 Cash and cash equivalents, December 31 $ 198,000...
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This note was uploaded on 01/08/2011 for the course -2 20101 taught by Professor Georgesanchez during the Spring '10 term at USC.

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