Scribd
Upload
58 views1 page

CH 13 Study Guide Ans

This document contains study guide answers for a chapter on statements of cash flows. It includes true-false questions about classifying items in the operating, investing, and financing sections as well as a short question providing a sample statement of cash flows for Polygon Company. The statement of cash flows shows cash from operating activities of $544,000, cash used in investing activities of $344,000, and cash used in financing activities of $9,000, resulting in an increase in cash of $191,000.

Uploaded by

Lo Ka Chun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
58 views1 page

CH 13 Study Guide Ans

This document contains study guide answers for a chapter on statements of cash flows. It includes true-false questions about classifying items in the operating, investing, and financing sections as well as a short question providing a sample statement of cash flows for Polygon Company. The statement of cash flows shows cash from operating activities of $544,000, cash used in investing activities of $344,000, and cash used in financing activities of $9,000, resulting in an increase in cash of $191,000.

Uploaded by

Lo Ka Chun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 1

BHMH2101

Financial Accounting

Study Guide Exercise Answers (Chapter 13)


Statement of Cash Flow

TRUE-FALSE QUESTIONS

1. False – Dividends paid belong in the financing section. 


2. False – The purchase of equipment for the manufacturing of inventory belongs in the
Investing section.
3. False - All cash receipts and cash payments not classified as investing or financing activities
are classified as operating activities. 
4. True  
5. False - Under the indirect method, when machinery is sold at a gain, the gain is deducted in
the operating section of the statement of cash flows.

SHORT QUESTION

Polygon Company
Statement of Cash Flows
For the Year Ended 31 December 20X2
　 $ $
Cash flows from operating activities
Profit 309,000
Add: Depreciation expense 181,000
Amortization 40,000
Decrease in accounts receivable 9,000
Decrease in inventory　 32,000
Increase in accounts payable 24,000

Less: Non-operating gain (38,000)


Increase in prepaid expenses　 (12,000)
Decrease in accrued expenses payable (1,000)
　Net cash from operating activities　 544,000
　
　Cash flows from investing activities:
　　 Purchases of PPE (402,000)
　　 Proceeds from sales of PPE 58,000
Net cash used in investing activities: (344,000)
　　 　 　 　
　Cash flows from financing activities:
　　 Payments to settle long-term debts (100,000)
　　 Proceeds from issuing ordinary shares 118,000
　　 Dividends paid 　 (27,000)
　Net cash used in financing activities (9,000)
　Net increase (decrease) in cash and cash equivalents 191,000
　Cash and cash equivalents, beginning of year 72,000
　Cash and cash equivalents, end of year 263,000

Semester 2 2019-2020 Page 1 of 1

You might also like