Question & Answer: Answer the following questions about the Statement of Cash Flows……

Answer the following questions about the Statement of Cash Flows.

a. What are the three types of activities on the Statement?

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b. Where does most of the information for the operating activities come from?

c. Where is cash paid for interest recorded?

d. Where is the principal paid on a loan recorded?

e. Where is the sale of breeding livestock listed?

f. Where is the sale of machinery listed?

Expert Answer

 

a) Operating activities, Investing activities, and Financing activities

b) Most of the information for the operating activities coming from income statement.

c) Cash paid for interest will show under operating activities

d) Principal paid for loan will record under financing activities as cash outflow

e) Sale of breeding livestock will record under cash flow from investing activities as cash inflow

f) Sale of machineray will record under investing activities as cash inflow

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