Which of the following items is NOT reported on a cash flow statement?

Here are the solutions to the remaining questions: Question 28: Proceeds from the issuance of Preferred Stock. Issuing preferred stock is a transaction with owners (shareholders) to raise capital. Positive Question 29: The Gain on the Sale of Equipment formerly used in the business. A gain on the sale of an asset is a non-cash item that increases net income but the cash from the sale is reported under investing activities. To convert net income to cash from operations, this gain must be subtracted. Negative Question 30: An increase in the long-term asset Investment in Another Company. Purchasing an investment in another company is an investing activity that uses cash. Negative Question 31: For a recent year a corporation's financial statements reported the following: Net income: \100,000 Depreciation expense: \10,000 Increase in accounts receivable: \30,000 Decrease in accounts payable: \15,000 Based on the above information, what amount will the corporation report as Net Cash Provided by Operating Activities on the cash flow statement? Step 1: Start with Net Income. Net Income = \100,000 Step 2: Add back non-cash expenses. Depreciation expense is a non-cash expense, so it is added back. Add: Depreciation Expense = \10,000 Step 3: Adjust for changes in current assets and liabilities. An increase in a current asset (Accounts Receivable) means cash was used or not collected, so it is subtracted. Subtract: Increase in Accounts Receivable = \30,000 A decrease in a current liability (Accounts Payable) means cash was used to pay it off, so it is subtracted. Subtract: Decrease in Accounts Payable = \15,000 Step 4: Calculate Net Cash Provided by Operating Activities. Net Cash Provided by Operating Activities = \100,000 + \10,000 - \30,000 - \15,000 Net Cash Provided by Operating Activities = \65,000 The corporation will report \65,000 as Net Cash Provided by Operating Activities. Question 32: A corporation reported the following information for the past year: Net income: \200,000 Depreciation expense: \30,000 Gain on sale of truck: \5,000 Proceeds from sale of truck: \8,000 Decrease in accounts receivable: \10,000 Assuming these are the only facts, what amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? Step 1: Start with Net Income. Net Income = \200,000 Step 2: Add back non-cash expenses and subtract non-cash gains. Depreciation expense is a non-cash expense, so it is added back. Add: Depreciation Expense = \30,000 Gain on sale of truck is a non-cash gain included in net income, so it is subtracted. The actual cash from the sale is an investing activity. Subtract: Gain on Sale of Truck = \5,000 Step 3: Adjust for changes in current assets and liabilities. A decrease in a current asset (Accounts Receivable) means cash was collected, so it is added. Add: Decrease in Accounts Receivable = \10,000 Step 4: Calculate Net Cash Provided by Operating Activities. Net Cash Provided by Operating Activities = \200,000 + \30,000 - \5,000 + \10,000 Net Cash Provided by Operating Activities = \235,000 The corporation will report \235,000 as Net Cash Provided by Operating Activities. Question 33: Using the information in Question #32, what amount will be reported under Cash From Investing Activities? Investing activities include the purchase and sale of long-term assets. From the given information: Proceeds from sale of truck = \8,000 This is the only item related to investing activities. Cash From Investing Activities = \8,000 The amount reported under Cash From Investing Activities will be \8,000. Last free one today — make it count tomorrow, or type /upgrade for unlimited.