FASB Codification Research Project
(a) What is the primary objective for the statement of cash flows? Is working capital the
basis for meeting this objective?
(b) What information is provided
1-Mar Purchased 8,000 shares of AT&T stock at $31.00 per share; brokerage fee= $120
LT Investments (8000X31)+120
1-May Received a $.60 per share cash dividend on the AT&T stock
Cash (5,000 X $1).
Cash (4,000 X $.50).
Cash [(1,500 X $8) $300].
Stock Investments (1,500 X $6).
Gain on Sale of Stock
The net income reported on the income statement for the current year was $29,300 which
included depreciation expense of $8,800.
Balances of certain asset and liability accounts at the beginning and end
of the year are as follows:
GROUP EXERCISE SOLUTION
CASH FLOW CLASSIFICATIONS
Indicate the type of cash flow activity(operating, investing,financing, non-cash) and the cash flow direction
inflow or outflow) and amount for Company X.
NOTE: Some answers require two separate activities
STATEMENT OF CASH FLOWS
Depreciation & Amortization
Decrease in Current Assets(1)
Increase in Current Liabilities(2)
Increase in Current Assets(1)
Decrease in Current Liabilities(2)
P127 KANSAS CITY+F
1. What was the Lindy Hop, when was it popular, and what was the origin of its name?
A style of swing dance. From charles lindbergh's celebrated hop.
2. What was the Kansas City Style jazz in the 1930s? What made Kansas City such a hot
1. To what does the term functional music refer? How it distinct from art
2. Tempo, meter, swing, and syncopation are all functions of rhythm. Know what
these terms mean. Meter: origination of pulse or beat. Swing: constant tempo,
rhythmic lilt, sp
Practice Test II
Indicate whether the statement is true or false.
1. A taxpayer who claims the standard deduction can also deduct expenses that are classified as deductions for
2. A taxpayer in the 25% tax bracket may receive a differe