MGT 11A Chapter Notes - Chapter 12: Cash Flow, Promissory Note, Retained Earnings
Document Summary
To compute cash flows from investing activities, we analyze changes in: 2) any current accounts for notes receivable and investments in securities. Reporting of investing activities is identical under the direct method and indirect method. To determine cash provided or used by investing activities: Genesis both purchases and sold long-term assets during the period. Are investing activities and are analyzed for their cash flow effects. To compute cash flows from financing activities, we analyze changes in all noncurrent liability accounts (including the current portion of any notes and bonds) and equity accounts. Accounts include: long-term debt, notes payable, bonds payable, common stock, and retained earnings. Reporting of financing activities is identical under the direct method and indirect method. To determine cash provided or used by financing activities: 2) explain these changes using t-accounts and reconstructed entries. Genesis retired notes payable by paying cash. This is a change in noncurrent liabilities.
