Watson Corporation, which uses accounting standards for private enterprises (ASPE), is using the indirect method to prepare its 2011 statement of cash flows. A list of items that may affect the statement follows:
(a) Increase in accounts receivable
(b) Decrease in accounts receivable
(c) Issue of shares
(d) Depreciation expense
(e) Sale of land at carrying amount
(f) Sale of land at a gain
(g) Payment of dividends charged to retained earnings
(h) Purchase of land and building
(i) Purchase of long-term investment in bonds, reported at amortized cost
(j) Increase in accounts payable
(k) Decrease in accounts payable
(l) Loan from bank by signing note payable
(m) Purchase of equipment by issuing a note payable
(n) Increase in inventory
(o) Issue of bonds
(p) Retirement of bonds
(q) Sale of equipment at a loss
(r) Purchase of corporation’s own shares
(s) Acquisition of equipment using a capital/finance lease
(t) Conversion of bonds into common shares
(u) Impairment loss on goodwill
Match each code in the list that follows to the items above to show how each item will affect Watson’s 2011 statement of cash flows. Unless stated otherwise, assume that the transaction was for cash.

  • CreatedAugust 23, 2015
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