Exam 9: Statement of Cash Flows

Which statement is true?

Identify if the following investments meet the requirements to be classified as cash and cash equivalents.

Contrast the primary differences between IFRS and ASPE with respect to the presentation of the statement of cash flows using the following table:

A company's activities for the year ended December 31,2018 included the following: • Sold a held-for-trading investment for $10,000.The book value was $15,000. • Sold an available-for-sale investment for $10,000.The book value was $5,000. Using the indirect method,how much would be presented as cash flow from operating activities?

Explain how the following transactions should be reported in the statement of cash flows,assuming the indirect method is used to determine cash flows from operating activities.Identify all available options.If not reported on the statement of cash flows,indicate the disclosure requirements,if any. 1.The purchase of a $100,000,45-day Treasury bill held-for-trading investment. 2.Amortization of the discount on bonds payable in the amount of $20,000.

Which of the following is an investing activity?

Soorya Law Ltd.'s policy is to report all cash inflows from interest and dividends in the investing section and cash outflows arising from interest and dividends in the financing section.Soorya Law's activities for the year ended December 31,2016 included the following: • Sold a held-for-trading investment for $11,000.The book value of this investment,which was designated as a cash equivalent,was $11,000. • Sold an available-for-sale investment for $27,000.The book value of the investment was $27,000. • Borrowed $120,000 from the bank for investment purposes. • Sold equipment for $63,000 that originally cost $80,000.The net book value of this item at time of sale was $54,000. • Received $5,000 in interest and $5,000 in dividends on sundry investments. • Paid $4,000 interest on the investment loan. • Acquired land and buildings valued at $450,000 by paying $150,000 cash and issuing ordinary shares for the balance. • Bought $350,000 in bonds at a premium,paying $305,000 cash. Required: a.Prepare the cash flows from investing activities section of the statement of cash flows. b.Identify how the activities listed above that are not investing activities would be reported in the statement of cash flows assuming that the statement is prepared using the indirect method.