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Is depreciation a source of cash flow

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Question

1. What are the major advantages of the indirect method of reporting cash flows from operating activities?

2. A corporation issued $200,000 of common stock in exchange for $200,000 of fixed assets. Where would this transaction be reported on the Statement of Cash Flows?

3. A corporation issued $5,000,000 of 20 year bonds for cash at 105. How would the transaction be reported on the Statement of Cash Flows?

4. Is depreciation a source of cash flow?

5. When a statement of cash flows is prepared using the direct method, what are some of the operating cash flows?

Reference no: EM132360530

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