The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows: Operating Activities: Operating Activities are day to day business transactions, for example sales purchase etc. Investing Activities: Investing Activities belong to the sale or purchase of assets or investments of a business. For example sales of fixed assets etc, purchase of investments. Financing Activities: Financing Activities includes the transactions related to raising business finds through equity or debts. For example, issuance of shares and payment of dividend to shareholders. To Indicate: The cash flow activities for the company.

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Question 10 Two friends, Mickey and Minnie, had just started university studies. Both intended to major in accounting. During the first week of lectures, Minnie, who had to go home for family reasons, asked Mickey to buy a copy of the prescribed accounting text for her from the university book- shop. She left Mickey $100 to cover the cost of the text currently selling in the bookshop for $80. On the day Mickey visited the bookshop to buy the text; he noted that there were a number of copies that had been returned to the shop by the students who had managed to get second-hand copies. These returned copies had been marked down to $65 and looked new. Unable to resist a bargain, Mickey bought a copy for $65. Mickey then realized that Minnie would not know that the text he had bought was a return and he had been bought at a special price and that he could give Minnie change of $20 and the keep the savings on the text for $15 for himself. He simply had to tell Minnie that he had lost the…

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Chapter 1, Problem 75.1C

To determine

Concept Introduction:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Operating Activities: Operating Activities are day to day business transactions, for example sales purchase etc.

Investing Activities: Investing Activities belong to the sale or purchase of assets or investments of a business. For example sales of fixed assets etc, purchase of investments.

Financing Activities: Financing Activities includes the transactions related to raising business finds through equity or debts. For example, issuance of shares and payment of dividend to shareholders.

To Indicate:

The cash flow activities for the company.

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