See attached document. MUST follow instructions for EVERY exercise, EVERY part/step of exercise....

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See attached document. MUST follow instructions for EVERY exercise, EVERY part/step of exercise. MUST answer every part of exercise. Thank you.
	
Document Preview: Chapter One Problems Please complete the following 5 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.Ch 1 Critical Thinking Question 5:Answer the following questions: Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1:1. Classification of activitiesClassify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. ________ Received $80,000 from the sale of land. ________ Received $3,200 from cash sales. ________ Paid a $5,000 dividend. ________ Purchased $8,800 of merchandise for cash. ________ Received $100,000 from the issuance of common stock. ________ Paid $1,200 of interest on a note payable. ________ Acquired a new laser printer by paying $650. ________ Acquired a $400,000 building by signing a $400,000 mortgage note.Chapter 1 Exercise 4:4. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why.Both the direct and indirect methods will produce the same cash flow from operating activities. Depreciation expense is added back to net income when the indirect method is used. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. The dollar change in the Merchandise Inventory account appears on the statement of cash flows only when the direct method of statement...

Robert · Accepted Answer

Answer 
Answer the following questions:  
Why are noncash transactions, such as the exchange of common stock a building, 
included on a statement of cash flows? How are these noncash transactions disclosed?  
Non Cash transactions are those transactions which do not involve any money. To record the 
non cash transactions indirect method is used. Normally, these transactions are not included in 
cash flow statement but if the accountant wants to record the non cash transactions then on one 
side the cash from investing activity can be decreased and on other side cash from financing 
activity can be increased and the ultimate effect is nil .These non cash transactions are recorded 
separately in cash flow statement under the section non cash transactions. 
1. Classification of activities 
Classify each of the following transactions as arising from an operating (O), investing (I), 
financing (F), or noncash investing/financing (N) activity.  
a. _I_______ Received $80,000 from the sale of land.  
b. ___O_____ Received $3,200 from cash sales.  
c. __F______ paid a $5,000 dividend.  
d. __O______ Purchased $8,800 of merchandise for cash.  
e. ___F_____ Received $100,000 from the issuance of common stock.  
f. ___O_____ Paid $1,200 of interest on a note payable.  
g. ___I_____ acquired a new laser printer by paying $650.  
h. __N______ acquired a $400,000 building by signing a $400,000 mortgage note. 
4. Overview of direct and indirect methods  
Evaluate the comments that follow as being true or false. If the comment is false, briefly 
explain why. 
a) Both the direct and indirect methods will produce the same cash flow from operating activities.

See attached document. MUST follow instructions for EVERY exercise, EVERY part/step of exercise. MUST answer every part of exercise. Thank you. Document Preview: Chapter One Problems Please complete...

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