Answer:
identifying changes in investing-related accounts
reporting the cash flow effects
explaining the changes using T-accounts and reconstructed entries
Explanation:
In analysing cash flows in a business there are 3 types of cash flow: from operating activities, from investing activities, and from financing activities.
Cash flow from investing activities involves cash used for various investments over a particular period.
This can include purchase of property, equipment, acquisition of other businesses, and investment in marketable securities.
The three-step analysis to determine cash for investing activities includes:
- monitoring changes that occurs in investment related accounts
- reporting of cash flow as it relates to investment
- use of T accounts and reconstructed entries to explain changes in cash flow
Answer:
Contingent gains will not be reported on the financial statements of year 4.
Explanation:
As the Calim amount will benefit the Smith Co. so it is classified as the gain. In year 4 there is a probability of estimated gain in the range of $75,000 to $150,000. This is an contingent gain which is not realized until the end to year 4. As $100,00 is received in year 5, so it will not be reported in the financial statement of year 4. The contingent gain are not reported on the financial statements. The Revenues / Gains are reported when they are realized and Expenses / losses are reported when they are expected to incurr.
ShopRite impacts the environment by reducing harm to the environment and creating job in the recycling sector.
<h3>What is an environment?</h3>
It should be noted that an environment simply means the surrounding where an organism lives.
At ShopRite, plastics wastes that are generated are recycled into carrier bags. This helps in reducing harm to the environment.
Learn more about environment on:
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