1.The Statement of Cash Flows:
Lists all cash flows over the life of a company.
Breaks down all cash transactions into investing and financing cash flows.
Shows that the change in total cash from one year to the next is equal to the net operating, investing, and financing cash flows.
Has two methods for investing cash flows – direct and indirect.
2.The sale of a good or service is classified in the statement of cash flows as a(n):
3.Operating cash flows exclude:
4. Dividends received from an investment is classified as a(an) __________ cash flow, and paying dividends on stock issued is classified as a(an) ____________ cash flow on the Statement of Cash Flows.
5._________ is an investing cash flow and ________ is a financing cash flow, as reported on the Statement of Cash Flows.
Issuing bonds; selling investments
Purchasing land; repaying a bank loan
Receiving cash from the sale of inventory; paying cash dividends
Purchasing treasury stock; lending cash to an employee
6.Cash flows from financing activities do not include:
Retirement of bonds payable.
Cash dividends paid.
Issuance of common stock.