Exam 12: Reporting Cash Flows

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold \ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots \ 226,000 Merchandise inventory, January 1\ldots\ldots\ldots\ldots\ldots\ldots 54,800 Merchandise inventory, December 31\ldots\ldots\ldots\ldots\ldots 57,400 Accounts payable, January 1\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots 54,400 Accounts payable, December 31\ldots\ldots\ldots\ldots\ldots\ldots 59,800

The purchase of stock in another company is classified as an investing activity.

The full disclosure principle requires that noncash investing and financing activities be disclosed in the financial statements.

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

Information to prepare the statement of cash flows usually comes from (a)comparative balance sheets, (b)current income statement,and (c)additional information.