AB 116 WEEK 10 LEARNING ACTIVITY

AB 116 WEEK 10 1 For each of the following items indicate by using the appropriate code letter how the item should be reported in the statement of cash flows, using the direct method.

 	Student Answer:	 	   : Added in determining cash receipts from customers	   »   4 : Decrease in accounts receivable during a period.
 		 	   : Added in determining cash payments to suppliers	   »   6 : Decrease in accounts payable during a period.
 		 	   : Deducted in determining cash payments to suppliers	   »   1 : Decrease in merchandise inventory during a period.
 		 	   : Cash outflow—investing activity	   »   2 : Purchase of land for cash.
 		 	   : Cash inflow—investing activity	   »   7 : Sale of equipment for cash at book value.
 		 	   : Cash outflow—financing activity	   »   8 : Declaration and payment of a cash dividend.
 		 	   : Cash inflow—financing activity	   »   3 : Issuance of preferred stock for cash.
 		 	   : Significant noncash investing and financing activity	   »   5 : Conversion of bonds payable into common stock.
	

 	Points Received:	10 of 10 
 	Comments:

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