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149.
The following information was obtained from the Champion Company for the year ending
December 31, 20__.
Using the direct method, prepare a statement of cash flows.
150.
Place an X in the column signifying whether the activity is an operating, investing, or a
financing activity, and if it is a source or a use of funds or if it is a non-cash activity.
151.
Classification of cash flows
Indicate how each of the following events should be classified in a statement of cash flows
for the current calendar year. Use the following code: O = operating activities, I = investing
activities, and F = financing activities
Assume this company uses the direct method. If the event does not involve a cash flow that
should be included in the statement of cash flows, use an X.
____ (a) Declared a dividend to be paid early next year.
____ (b) Recorded depreciation expense for the current year.
____ (c) At year-end, paid rent in advance for the next six months.
____ (d) Issued capital stock for cash; management plans to use this cash to invest in
marketable securities.
____ (e) Sold a parcel of unused land at a loss.
____ (f) Collected principal amount due on a note receivable.
____ (g) Used the cash received in d, above, to purchase marketable securities.
____ (h) Collected interest due on note receivable described in f, above.
____ (i) Made an adjusting entry to accrue interest payable at year-end.
____ (j) Collected account receivable from a customer who made a large credit purchase in
a prior period.
152.
Computation of operating cash flows
The financial statements of Packard Corporation provide the following information for the
current year:
Using this information, compute for the current year:
153.
Computation of operating cash flows
The financial statements of Custom Corporation provide the following information for the
current year:
Using this information, compute for the current year:
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154.
Computation of cash flows
An analysis of changes in selected balance sheet accounts of Taurus Corporation shows
the following for the current year:
The income statement for the current year included the following items relating to the
transactions summarized above:
All payments and proceeds relating to these transactions were in cash. Using this
information, compute the following cash flows for the current year:
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155.
Computation of cash flows
An analysis of changes in selected balance sheet accounts of Gable Corporation shows the
following for the current year:
The income statement for the current year included the following items relating to the
transactions summarized above:
All payments and proceeds relating to these transactions were in cash. Using this
information, compute the following cash flows for the current year:
156.
Comparison of cash flows and accrual basis
Underhill Corporation’s statement of cash flows for 2015 shows the following information
regarding investing activities:
Underhill Corporation’s income statement for 2015 includes the following items:
(a) All payments and proceeds relating to these transactions were in cash. Using this
information, compute the following:
(b) Underhill Corporation’s balance sheet at the end of 2014 showed Land of $3,057,000
and Investment in Marketable Securities of $2,218,000. On the basis of the data presented
above, compute the amount to be reported for Land and for Investment in Marketable
Securities on Underhill Corporation’s balance sheet at December 31, 2015.
