This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: ACT 6692 Module 17 – Assignment (Problems) 17-1—Classification of cash flows Note that X in the following statement of cash flows identifies a dollar amount and the letters (A) through (F) identify specific items which appear in the major sections of the statement prepared using the indirect method. Statement of Cash Flows Cash flows from operating activities Net income X Adjustments to reconcile net income to net cash provided by operating activities: Add +X (A) Deduct –X (B) Net cash provided by operating activities X Cash flows from investing activities Inflows +X (C) Outflows –X (D) Net cash provided (used) by investing activities X Cash flows from financing activities Inflows +X (E) Outflows –X (F) Net cash provided (used) by financing activities X Net increase (decrease) in cash X Instructions For each of the following items, indicate by letter in the blank spaces below, the section or sections where the effect would be reported. Use the code (A through F) from above. If the item is not required to be reported on the statement of cash flows, write the word "none" in the blank. Assume that generally accepted accounting principles have been followed in determining net income and that there are no short-term securities which are considered cash equivalents. _____ 1. After the retirement of an officer, the insurance policy was canceled, and a cash settlement was received by the firm. These proceeds were in excess of the book value of the policy....
View Full Document
This note was uploaded on 02/22/2011 for the course MBA 6692 taught by Professor Lewis during the Spring '11 term at Troy.
- Spring '11