The SCF is a statement that helps reflect the cash inflows and outflows of a business for a period of time. It explains the change in Cash by showing the effects on cash of a business's operating, investing and financing activities for the accounting period.
It explains the change in Cash by showing the effects on cash of a business's operating, investing and financing activities so that it shows on how different users of the SCF use this statement.
The three major classifications of cash flows in the SCF are operating activities, investing activities and financing activities.
The two alternative approaches to preparing the SCF is direct and indirect.
Direct method shows cash receipts from sales and cash disbursements while indirect method starts with net income and then adjusts for noncash items.
When the indirect approach is used in preparing the SCF the net income and noncash items must be provided.
The indirect appoach with regard to the statement of cash flows, one of tow methods for converting net income to net cash flow from operations.
It is shown on the SCF at the end of the year category.
It relates to the change by explaining the change in cash by showing the effects on cash of a businee's operating, investing and fiancing activites for the accounting period.
It is shown under noncurrent liabilties and owner's equity accounts.

Problem 1

operating activities financing activities financing activities financing activities investment activities investment activities financing activities financing activities financing activities operating activities

Problem 2

1a. sold delivery van

$3000-$5000 = -$2000

1b. sold copier
$1000-$500 = $500

Net Cash Flows from Investing Activites:

Purchase of Equipment $18,500
Sold Equipment