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?
Answer to relevant QuestionsDescribe the relationship between changes in cash and changes in noncash assets, liabilities, and stockholders’ equity. Refer to the information for Peterson Inc. above. A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b. Increase in accounts ...Singleton Inc. had accounts receivable of $391,400 at January 1, 2011, and $418,650 at December 31, 2011. Net income for 2011 was $550,000 and sales revenue was $925,000. Required: Compute the amount of cash collected from ...The following information is available for Bernard Corporation for 2011: Required: 1. Compute the net cash flows from operating activities using the indirect method. 2. What are the causes of the major differences between ...The controller of Newstrom Software Inc. provides the following information as the basis for a statement of cash flows: Required: 1. Calculate the net cash provided (used) by operating activities. 2. Calculate the net cash ...
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