1. Where are significant non-cash activities reported on the SCF?
Significant non-cash activities basically refer to the important financing, as well as, investing activities which do not affect cash. Such activities are not reported within the SCF’s body but are reported within either a separate schedule within the bottom of a certain SCF or within a supplementary schedule or separate note to the financial statements (Jury, 2012). Examples of such activities are exchange of plant assets, issuance of debt so as to purchase assets, issuance of common stocks so as to purchase assets among others.
2. If you saw a significant increase or decrease in the investing section where might you look to find out more information?
Upon seen a significant increase or even decrease within the investing section, one can obtain more information from the cash receipts which are realized after the sale of some of the plant assets and cash payments made upon the acquisition of certain plant assets which are usually under the balance sheet category (Jury, 2012).
Jury, T. (2012). Cash Flow Analysis and Forecasting: The Definitive Guide to Understanding and Using Published Cash Flow Data. Hoboken: John Wiley & Sons.
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