For each of the following activities, identify where the activity would be reported on the statement of cash flows.
1. Change in accounts receivable
2. Acquisition of fixed assets
3. Change in short-term borrowing
4. Change in inventories
5. Change in long-term borrowing
6. Purchase of municipal bonds with the intention of holding the bonds to maturity
7. Purchase of supplies inventory
8. Issue of capital stock
9. Change in trade accounts payable
10. Payment of interest expense
Please see the response to your posting as below:
1. Change in accounts ...
The solution shows classification of the activities into Operating, Investing or Financing activity.
Statement of Cash Flows: Time for change! SFAS No. 95
See attached file.
As contained in the Week Four electronic reserve readings article readings, this article, Broome, O. W. (2004, March/April). Statement of cash flows: Time for change! Financial Analysts Journal, 60(2), 16. , describes the current SFAS No. 95 requirements for the statement of cash flows, cites recent cases of abuse and disinformation involving the statement, and makes significant recommendations for improving the statement. Based on the comments in the article do you think the three sections of the statement of cash flows provide enough information for the reader? Of the three which provides the most information or is this an 'it depends' answer?View Full Posting Details