What is a statement of cash flows?
Answer to relevant QuestionsWhy are depreciation, depletion, and amortization added to net income when the indirect method is used to report net cash flows from operating activities? Does the fact that the cash flow from operating activities is normally positive imply that cash and cash equivalents usually increase each year? When using the direct method, which items usually constitute the largest components of cash inflows from operating activities? Why are direct exchanges of long-term debt for items of property, plant, and equipment included in supplementary information for the statement of cash flows even though the exchanges do not affect cash? Brandon Inc. reported the following items in its balance sheet and income statement: net income, $92,600; gain on disposal of equipment, $15,800; increase in accounts receivable, $17,400; decrease in accounts payable, ...
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