medium · Financial Accounting statement-of-cash-flows
Caldera Co. reports under U.S. GAAP. During the year it paid $42,000 of interest, received $18,000 of interest, received $9,000 of dividends from investments, and paid $25,000 in dividends to its own shareholders. It also paid $60,000 in income taxes, of which $12,000 relates to a gain on sale of a building (an investing event).
How are these items classified across the operating, investing, and financing sections under U.S. GAAP (not IFRS)?
- Interest paid, interest received, dividends received, and all $60,000 of taxes paid are operating; dividends paid are financing
- Interest paid, interest received, and dividends received are operating; the $12,000 of tax on the building gain is investing; dividends paid are financing
- Interest received and dividends received are investing; interest paid and dividends paid are financing; taxes are operating
- Interest paid is operating; interest received, dividends received are investing; all taxes operating; dividends paid financing
Sign up free to see the explanation and track your rank →
More Financial Accounting statement-of-cash-flows practice
- A customer pays $200 to settle an outstanding Account Receiv… — How does this transaction
- In the Operating section of the Cash Flow Statement (indirect method), how are these items
- What is the Cash Flow from Operations (CFO) using the indirect method?
- A firm using the indirect method for the Statement of Cash Flows reports Net Income of $50
- Westwood Distribution reports Net Income of $6,574. If Depreciation Expense is $3,900 and
- A firm sells equipment with an original cost of $90,000 and… — How is this transaction rep
- Using the indirect method, what is the Net Cash from Operating Activities?
- Under ASC 842, a lessee enters into a 3-year lease with annual payments of $50,000 due at