{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Accounting Questions - 1 . structured? sheetinformation.TheS

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

View Full Document Right Arrow Icon
1. Explain the generation of statement of cash flows. Where does the information come from and how is it  structured? Who uses this report and what info are the interested in? The Statement of Cash Flows is generated using information on current operating results and balance  sheet information. The Statement of Cash Flows has three sections: cash flows from operating activities,  cash flows from investing activities, and cash flow from financing activities. Several categories of actors  utilize information from the Statement of Cash Flows.  Managers within a firm are interested in whether a  company has enough working capital to subsist a going concern. Creditors use the information to gain a  sense of a firm’s liquidity, while investors use the information to gauge a firm’s solvency and profitability. 2. A Credit card company incurred the following cost in acquiring plant assets: -Purchased land for a 50,000 down payment and signed 100,000 note payable for balance. -Delinquent property tax 3,500 and legal fees of 1,500 -8,000 to remove unwanted building -Architect fee of 2,000 for design of a building -Constructed an office building at the cost of 405,000 -Interest cost of construction loan for the building 20,000
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern