ACC 540 Statement of Cash Flows Flashcards

Sale of Land

Positive Investing activity

Issuance of common stock for cash

Positive Financing activity

Purchase of treasury stock

Negative Financing activity

Conversion of bonds payable to common stock

Noncash investing and financing activity

Lease of equipment

Noncash investing and financing activity

Sale of patent

Positive Investing activity

Acquisition of building for cash

Negative Investing activity

Issuance of common stock for land

Noncash investing and financing activity

Collection of note receivable (principal amount)

Positive Investing activity

Issuance of bonds

Positive Financing activity

Issuance of stock dividend

Not reported as investing and/or a financing activity

Payment of property dividend

Noncash investing and financing activity

Payment of cash dividends

Negative Financing activity

Issuance of short-term note payable for cash

Positive Financing activity

Issuance of long-term note payable for cash

Positive Financing activity

Purchase of marketable debt securities (“available for sale”)

Negative Investing activity

Payment of note payable

Negative Financing activity

Cash payment for 5-year insurance policy

Not reported as an investing and/or a financing activity

Sale of equipment

Positive Investing activity

Acquisition of common stock of another corporation

Negative Investing activity

Issuance of note payable for equipment

Noncash investing and financing activity

Repayment of long-term debt by issuing common stock

Noncash investing and financing activity

Payment of semiannual interest on bonds payable

Not reported as an investing and/or a financing activity

Retirement of preferred stock

Negative Financing activity

Loan to another company

Negative Investment activity

Sale of inventory to customers

Not reported as an investing and/or a financing activity

Purchase of marketable securities (cash equivalents)

Not reported as an investing and/or a financing activity

How to find cash from customers?

sales revenue minus increase in accounts receivable, minus bad debt expense and increased by decrease in A4DA

How to find cash from investment revenue?

decrease in long term investment minus investment revenue

How to find cash to suppliers of goods?

COGS plus increase in inventory plus decrease in accounts payable

How to find cash to employees?

Salaries expense plus decrease in salaries payable

How to find cash for insurance?

Insurance expense minus decrease in prepaid insurance

How to find cash for interest?

Interest expense minus increase of discount on bonds

How to find cash for income taxes?

Income tax expense minus increase in deferred tax liability

How to find cash for(from) sale of long-term investment?

a positive given amount

How find cash from sale of building?

a positive given amount

How to find cash from sale of land?

a positive given amount

How to find cash for purchase of short-term investment?

increase of short-term investment

How to find cash for repayment of notes payable

a negative given amount

How to find cash from sale of bonds payable

increase in bonds payable

How to find cash from sale of common stock

increase in common stock plus increase in paid-in capital-excess of par

How to find cash for payment of dividends

net income minus increase in retained earnings

How to find cash to payment on lease liability?

negative given amount

How to find cash to retirement of bonds payable?

negative given amount

How to find cash from sale of common stock

increase in common stock plus increase in paid in capital-excess of par

How to find cash from sale of preferred stock

positive given number/increase in preferred stock

How to find net increase in cash

by adding net cash flows from operating activities, investing activities, and financing activities