Asked by Priyani Patel on Jun 24, 2024
Verified
In a recent year,Tommy Toys reported the following amounts (in millions).Identify the activities section of the statement of cash flows where these items would be reported.Also,indicate whether each amount would be added (+)or subtracted (-)in those sections of the cash flow statement.
Statement of Cash Flows
A summary statement which tracks all cash inflows to a company from its regular business operations and funds received from investments, plus all cash outflows for paying business and investment costs within a certain period.
Investing Activities
Transactions involving the purchase or sale of long-term assets and investments which are not related to the entity's primary business operations.
Financing Activities
Activities that result in changes in the size and composition of the equity capital and borrowings of an entity.
- Comprehend the categorization of operations within the cash flow statement and the effects of various transactions upon it.
- Differentiate among operating, investing, and financing activities within the framework of the cash flow statement.
Verified Answer
Learning Objectives
- Comprehend the categorization of operations within the cash flow statement and the effects of various transactions upon it.
- Differentiate among operating, investing, and financing activities within the framework of the cash flow statement.
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