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November 05, 2025, 10:49:24 am
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Author Topic: operating activities section?  (Read 7206 times)  Share 

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Stormer

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Re: operating activities section?
« Reply #15 on: June 08, 2010, 09:55:32 pm »
Quote from: ks04 on June 08, 2010, 09:54:37 pm
Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
No no no no. :(

It says operating cash flows. Neither of them are operating cash flows
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LFTM

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Re: operating activities section?
« Reply #16 on: June 08, 2010, 09:56:26 pm »
Quote from: ks04 on June 08, 2010, 09:54:37 pm
Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
but it said operating activities.
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ks04

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Re: operating activities section?
« Reply #17 on: June 08, 2010, 09:57:40 pm »
Quote from: Stormer on June 08, 2010, 09:55:32 pm
Quote from: ks04 on June 08, 2010, 09:54:37 pm
Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
No no no no. :(

It says operating cash flows. Neither of them are operating cash flows

Hmmm that would be annoying... it didn't specify cash, it just said operating activities... maybe... eh
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99.95

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Re: operating activities section?
« Reply #18 on: June 08, 2010, 09:58:13 pm »
Quote from: LFTM on June 08, 2010, 09:56:26 pm
Quote from: ks04 on June 08, 2010, 09:54:37 pm
Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
but it said operating activities.

isnt purchase of NCA put in investing activities and drawings put in financing?
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ks04

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Re: operating activities section?
« Reply #19 on: June 08, 2010, 09:59:42 pm »
Quote from: 99.95 on June 08, 2010, 09:58:13 pm
Quote from: LFTM on June 08, 2010, 09:56:26 pm
Quote from: ks04 on June 08, 2010, 09:54:37 pm
Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
but it said operating activities.

isnt purchase of NCA put in investing activities and drawings put in financing?
yep... helps if I read the question properly. :\
« Last Edit: June 08, 2010, 10:15:26 pm by ks04 »
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Stormer

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Re: operating activities section?
« Reply #20 on: June 08, 2010, 10:00:01 pm »
Quote from: ks04 on June 08, 2010, 09:57:40 pm
Quote from: Stormer on June 08, 2010, 09:55:32 pm
Quote from: ks04 on June 08, 2010, 09:54:37 pm
Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
No no no no. :(

It says operating cash flows. Neither of them are operating cash flows

Hmmm that would be annoying... it didn't specify cash, it just said operating activities... maybe... eh
Either way they're not operating activities.
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kakar0t

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Re: operating activities section?
« Reply #21 on: June 12, 2010, 01:20:29 pm »
Credit sales > cash received
Accrued expenses

are these examples valid?
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mmmmm

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Re: operating activities section?
« Reply #22 on: June 12, 2010, 02:43:46 pm »
What about prepaid exp > exp incurred?
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mojomojo

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Re: operating activities section?
« Reply #23 on: June 12, 2010, 03:55:21 pm »
What about

Accrued Wages Paid - decreases cash but no effect on net profit
and
Stock Gain - increase net profit but has no effect on cash flows

?
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LFTM

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Re: operating activities section?
« Reply #24 on: June 12, 2010, 09:28:40 pm »
Quote from: mojomojo on June 12, 2010, 03:55:21 pm
What about

Accrued Wages Paid - decreases cash but no effect on net profit
and
Stock Gain - increase net profit but has no effect on cash flows

?

pretty sure the first point is correct, don't know about the stock gain though... 
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davyp3

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Re: operating activities section?
« Reply #25 on: June 12, 2010, 10:04:25 pm »
stock gain is not operating
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LFTM

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Re: operating activities section?
« Reply #26 on: June 12, 2010, 10:37:33 pm »
Quote from: davyp3 on June 12, 2010, 10:04:25 pm
stock gain is not operating

yeah..stock gain is not a cash flow so they probably won't accept it.
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z1m2v3

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Re: operating activities section?
« Reply #27 on: June 12, 2010, 10:52:04 pm »
how about: payments to creditors and cash purchases of stock is greater than cost of sales?
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kakar0t

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Re: operating activities section?
« Reply #28 on: June 12, 2010, 11:13:35 pm »
yeah they should be fine, they are classed as operating
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