What effect does each transaction have on Statement of Cash Flows using US GAAP and...
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Accounting
What effect does each transaction have on Statement of Cash Flows using US GAAP and assuming the indirect method?
A. Cash flows from operating activities - Net income will be increased or adjusted upward
B. Cash flows from operating activities - Net income will be decreased or adjusted downward
C. Cash flows from investing activities
D. Cash flows from financing activities
E. Reported as significant noncash investing and financing activities, or not required to be reported on the cash flow statement
1. Equipment which originally cost $20,000 and has a book value of 2,000 is sold for $2,500 during the year. Where is the $500 gain reported on the CFS?
2. Equipment which originally cost $10,000 and has a book value of $4,000 is sold for $1,500 cash during the year. Where is the $1,500 reported on the CFS?
3. The company issued 1,000 shares of Common Stock (par value equal to $2.00) to acquire a parcel of land worth $1,500,000.
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