The statement of cash flows is normally a required basic financial statement for each period for which an earnings statement is presented. The statement should include a separate schedule listing the financing and investing activities not involving cash.$$

Required:$$

What are financing and investing activities not involving cash?$$

What are two types of financing and investing activities not involving cash?$$

Explain what effect, if any, each of the following seven items would have on the statement of cash flows.$$

accounts receivable$$

inventory$$

depreciation$$

deferred tax liability$$

issuance of long$-$term debt in payment for a building$$

payoff of current portion of debt$$

sale of a fixed asset resulting in a loss or gain$$

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