Answer: Please refer to Explanation
Explanation:
The Cash Flow Statement was created to ensure that businesses would know just how much hard cash they actually have. This Statement is therefore different from others in that in only records cash when it has been received and/or disbursed thus making it easier for a company to know how much cash it has.
The Investing Section of the Cashflow statement deals with fixed assets as well as transactions involving securities and bonds of other entities as those are investments.
When cash is spent on these transactions it is a Cash Outflow and is therefore subtracted.
When cash is received from such transactions it is considered a cash inflow and is added.
Effects of Above Transactions.
Sold a Truck for $11,200. This will INCREASE the Investing Cash Flow by $11,200.
Sold a Machine for $8,200. This will INCREASE the Investing Cash Flow by $8,200.
Purchased stock investments for $17,600 cash. This will DECREASE the Investing Cash Flow by -$17,600 as it was a cash Outflow.
The Investing Section of the Cash Flow Statement will look like,
Sold a Truck $11,200
Sold a Machine $8,200
Purchased stock investments -$17,600
Net Cashflow from Investing Activities $1,800
keep our biases from limiting our solutions.
I believe that is false, they don't often do business in foreign countries.
Answer:
$276,100
Explanation:
Preparation of the operating activities section of the statement of cash flows for 2020
GUTIERREZ COMPANY Statement of Cash FlowsFor Year Ended December 31, 2020
Cash flows – operating activities
Net income $196,100
Add Reconciling adjustments to net income to netcash provided by activities:
Depreciation expense$47,400
Loss on Disposal of plant assets $5,600
Increase in Accounts payable $12,900
Decrease in Accounts receivable $10,900
Decrease in Prepaid expenses $3,200
Net cash – operating activities $276,100
Therefore the operating activities section of the statement of cash flows for 2020 will be $276,100
Confidentiality.
Confidentiality means keeping things private/secret. It would be difficult to maintain this level of privacy if there is a lot of foot traffic.