401Chapter 5 handout

401Chapter 5 handout - Chapter 5 handout STATEMENT OF CASH...

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Chapter 5 handout STATEMENT OF CASH FLOWS INDIRECT METHOD Operating Activities Net Income + Non-Cash Charges ( Depreciation Expense, Amortization Expense, Depletion Expense, Bad Debt Expense) + Decreases in Current Assets other than Cash and Marketable Securities - Increases in Current Assets other than Cash and Marketable Securities - Decreases in Current Liabilities other than short-term debt + Increases in Current Liabilities other than short –term debt + Losses - Gains + Amortization of Discount on B/P - Amortization of Premium on B/P - Amortization of Discount on Investment in Bonds + Amortization of Premium on Investment in Bonds - Income under the Equity method + Losses under the Equity method Investing Activities + Cash received from the sale of property, plant, and equipment - Cash paid for the purchase of property, plant, and equipment + Cash received from the sale of marketable securities and investments - Cash paid for the purchase of marketable securities and investments Financing Activities + Cash received from the issuance of stock - Cash paid for the repurchase of stock + Cash received from borrowing money - Cash paid for the repayment of debt - Dividends Paid
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A/P increases Cash _____________ A/R increases Cash _____________ Inventory increases Cash _____________ Supplies decrease Cash _____________ Prepaid Insurance increases Cash_____________ Your firm sold a tractor that cost $89,000 for $61,000. It had a book value of $71,000. Your firm sold equipment that had a cost of $40,000 for $24,000.
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This note was uploaded on 03/20/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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401Chapter 5 handout - Chapter 5 handout STATEMENT OF CASH...

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