Statement of cashflows 4 questions please help!!!!?

Question

The statement of cash flows is one of the four primary financial statements.

1. Describe the content and layout of a statement of cash flows, including its three sections.

2. List at least three transactions classified as investing activities in a statement of cash flows.

3. List at least three transactions classified as financing activities in a statement of cash flows.

4. List at least three transactions classified as significant noncash financing and investing activities

in the statement of cash flows.

Answer 1

1. Describe the content and layout of a statement of cash flows, including its three sections

i. Cash Provided From or Used By Operating Activities

This section of the cash flow statement reports the company's net income and then converts it from the accrual basis to the cash basis by using the changes in the balances of current asset and current liability accounts. In addition to using the changes in current assets and current liabilities, depreciation and the gains/losses on the sale of long-term assets are removed so that the income statement net income is converted from the accrual basis to cash.

ii.  Cash Provided From or Used By Investing Activities

This section of the cash flow statement reports changes in the balances of long-term asset accounts. In short, investing activities involve the purchase and/or sale of long-term investments and property, plant, and equipment.

iii.  Cash Provided From or Used By Financing Activities

This section of the cash flow statement reports changes in balances of the long-term liability and stockholders' equity accounts. In short, financing activities involve the issuance and/or the repurchase of a company's own bonds or stock. Dividend payments are also reported in this section.

2. List at least three transactions classified as investing activities in a statement of cash flows

Acquisition of long-term investments

Accuisition of property, plant & equipment

Giving of loans

3. List at least three transactions classified as financing activities in a statement of cash flows

Capital leases

Issue of stock

Mortgage loans

4. List at least three transactions classified as significant noncash financing and investing activities in the statement of cash flows

Exchange of company stock for company bonds

Acquisition of investments by issuing stock

Acquisition of property, plant & equipment by issuing notes payable.