Reference no: EM13495223

Cash Flow Statement Concepts and Applications

Refer to the Lowe's 2011 10-K. You should have located these statements for previous assessment problems. Use these statements and your prior knowledge of accounting, supplemented by textbooks or other references of your choosing, including the NOTES to the financial statements found in the Lowe's 2011 10-K, to answer the following questions, which all refer to the fiscal year end 2012. Indicate the source of each answer, including the page number from the Lowe's 2011 10-K.

Is the total amount of cash flows from operations the exact same amount regardless of whether the direct or the indirect method is used?

Explain.

How about the Financing and Investing Cash Flow sections? Are they the exact same regardless of whether the direct or the indirect method is used?

For each of the following, state in which part of the cash flow statement it is shown. Include the dollar amount and state whether it is a cash inflow or a cash outflow.

Buy long-term equipment for cash, $10,000.
Pay $20,000 on a long-term note payable.
Buy $40,000 of inventory for cash.
Pay salaries of $100,000.
Pay cash dividends of $25,000.
Issue new common stock for $50,000.