Chapter 13 – Statement of Cash Flows
103. Use the following information to prepare a statement of cash flows (direct method) for
Ames Corporation for the year ended December 31, 2011.
Chapter 13 – Statement of Cash Flows
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Chapter 13 – Statement of Cash Flows
104. Marissa Company is preparing a statement of cash flows using the indirect method. The
following data are available:
Calculate cash flows from operating activities.
Chapter 13 – Statement of Cash Flows
105. Hill Company reported net income of $10,000 for 2010. Additional 2010 information is
as follows:
Calculate cash flows from operating activities.
Chapter 13 – Statement of Cash Flows
106. Brooks Company reported net income of $40,000 which included depreciation expense
and depletion expense of $21,000 and $18,000, respectively. The following changes also
occurred during 2009:
Calculate cash flows from operating activities.
Chapter 13 – Statement of Cash Flows
107. Sagaworth Inc. reported the following information:
Determine Sagaworth’s net cash flow from operating activities for 2011 under the indirect
method.
Chapter 13 – Statement of Cash Flows
108. Below is the 2011 income statement for the Critters Corporation.
Additional Information:
Accounts receivable increased by $8,000
Merchandise inventory increased by $4,000
Accounts payable increased by $6,000
Prepaid expenses decreased by $2,000
Accrued liabilities decreased by $5,000
Interest payable increased by $1,000
Prepare the operating activities section of the statement of cash flows using the indirect
method.
Chapter 13 – Statement of Cash Flows
109. Brice Corporation reported the following information:
Compute Brice Corporation’s cash collected from customers for 2010.
Chapter 13 – Statement of Cash Flows
110. Brice Corporation reported the following information:
Compute Brice’s cash paid to suppliers for inventory for 2010.
Chapter 13 – Statement of Cash Flows
111. Brice Corporation reported the following information:
Compute Brice’s cash paid for operating expenses for 2010.
Chapter 13 – Statement of Cash Flows
112. Brice Corporation reported the following information:
Compute Brice’s cash paid for income taxes in 2010.
Chapter 13 – Statement of Cash Flows
113. The following information was reported from the statement of cash flows for Landlover’s
Restaurants for the years 2008 through 2010 (in millions of dollars):
Requirements:
A. Calculate the quality of income ratio for the years 2008 through 2010.
B. Interpret the quality of income ratio for Landlover’s for the three year period.
Chapter 13 – Statement of Cash Flows
114. Blythe Company paid $2.2 million to purchase stock in another company, $1.0 million to
repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for
$.8 million when its book value was $.6 million, and purchased new equipment for $3.4
million. How much will be reported as net cash flow from investing activities?
Chapter 13 – Statement of Cash Flows
115. The following information was available from the financial statements of Collateral, Inc.
for the years 2010 and 2009 (in millions of dollars):
Requirements:
A. Calculate the capital acquisitions ratio for each of the two years.
B. Comment on the sufficiency of the capital acquisitions ratio for the two years.
Chapter 13 – Statement of Cash Flows
116. While preparing a statement of cash flows, you encountered the following transaction:
February 1, 2011: Battles Corporation acquired a small office building in exchange for 5,000
shares of its own common stock; par value $10 per share; market value $15 per share.
Should this transaction be shown on the statement of cash flows? Why or why not?
Chapter 13 – Statement of Cash Flows
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117. Complete the following statement of cash flows using the indirect method:
Chapter 13 – Statement of Cash Flows
Chapter 13 – Statement of Cash Flows
118. During 2011, Tommy’s Toys reported the following: short-term borrowings of $419
million; long-term borrowings of $147 million; long-term debt repayments of $45 million;
interest paid, $128 million; treasury shares repurchased $632 million; and exercise of stock
options by employees, $2 million. How much is net cash flow from financing activities during
2011?
119. Kennel Co. reported short-term borrowings of $2,500,000, long-term borrowings of
$6,800,000, repayments of long-term borrowings of $3,500,000, interest payments of
$780,000, repurchase of treasury shares of $500,000, cash dividends declared of $1,100,000,
and cash dividend payments of $800,000. Kennel also issued their common stock in exchange
for a building costing $400,000. How much is the net cash flow from financing activities?
Chapter 13 – Statement of Cash Flows
120. Describe the three cash flow classifications that are reported within a statement of cash
flows.