Chapter 4 The Income Statement and Statement of Cash Flows39

Chapter 4 The - italics Bronco Metals Statement of Cash Flows For the Year Ended Cash flows from operating activities Collections from customers $

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 4-21 Consistent with U.S. GAAP, international standards also require a statement of cash flows. Consistent with U.S. GAAP, cash flows are classified as operating, investing, or financing. However, the U.S. standard designates cash outflows for interest payments and cash inflows from interest and dividends received as operating cash flows. Dividends paid to shareholders are classified as financing cash flows. IAS No. 7, on the other hand, allows more flexibility. Companies can report interest and dividends paid as either operating or financing cash flows and interest and dividends received as either operating or investing cash flows. Interest and dividend payments usually are reported as financing activities. Interest and dividends received normally are classified as investing activities. Accordingly, the statement of cash flows prepared according to IFRS mostly likely would be presented as follows (differences from U.S. GAAP in
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: italics): Bronco Metals Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities: Collections from customers $ 353,000 Purchase of inventory (186,000) Payment of operating expenses (67,000 ) Net cash flows from operating activities $100,000 Cash flows from investing activities: Interest on note receivable 4,000 Dividends received from investments 2,400 Collection of note receivable 100,000 Purchase of equipment (154,000 ) Net cash flows from investing activities (47,600) Cash flows from financing activities: Payment of interest on note payable (8,000) Proceeds from issuance of common stock 200,000 Dividends paid (40,000 ) Net cash flows from financing activities 152,000 Net increase in cash 204,400 Cash and cash equivalents, January 1 28,600 Cash and cash equivalents, December 31 $233,000...
View Full Document

This note was uploaded on 01/08/2011 for the course -2 20101 taught by Professor Georgesanchez during the Spring '10 term at USC.

Page1 / 2

Chapter 4 The - italics Bronco Metals Statement of Cash Flows For the Year Ended Cash flows from operating activities Collections from customers $

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online