120
125) Thunder Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Cash and cash equivalents
$
28
$
31
Accounts receivable
60
65
Inventory
41
42
Property, plant, and equipment
454
380
Less accumulated depreciation
206
172
Total assets
$
377
$
346
Liabilities and stockholders’ equity:
Accounts payable
$
43
$
45
Bonds payable
190
260
Common stock
41
40
Retained earnings
103
1
Total liabilities and stockholders’ equity
$
377
$
346
Income Statement
Sales
$
874
Cost of goods sold
533
Gross margin
341
Selling and administrative expense
161
Net operating income
$
180
Income taxes
54
Net income
$
126
The company did not dispose of any property, plant, and equipment, issue any bonds payable, or
repurchase any of its own common stock during the year. The company declared and paid a cash
dividend of $24.
Required:
Prepare a statement of cash flows in good form using the indirect method.
122
126) Marks Corporation’s balance sheet appears below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Cash and cash equivalents
$
47
$
37
Accounts receivable
53
57
Inventory
63
60
Property, plant, and equipment
548
440
Less accumulated depreciation
295
255
Total assets
$
416
$
339
Liabilities and stockholders’ equity:
Accounts payable
$
52
$
50
Bonds payable
260
250
Common stock
51
50
Retained earnings
53
(11
)
Total liabilities and stockholders’ equity
$
416
$
339
Net income for the year was $77. Cash dividends were $13. The company did not dispose of any
property, plant, and equipment, retire any bonds payable, or repurchase any of its own common
stock during the year.
Required:
Prepare a statement of cash flows in good form using the indirect method.
124
127) Burns Corporation’s net income last year was $91,000. Changes in the company’s balance
sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents
$
19,000
Accounts receivable
$
13,000
Inventory
$
(16,000
)
Prepaid expenses
$
4,000
Long-term investments
$
10,000
Property, plant, and equipment
$
70,000
Accumulated depreciation
$
31,000
Liability and Equity Accounts:
Accounts payable
$
(18,000
)
Accrued liabilities
$
16,000
Income taxes payable
$
4,000
Bonds payable
$
(60,000
)
Common stock
$
40,000
Retained earnings
$
87,000
The company did not dispose of any property, plant, and equipment, sell any long-term
investments, issue any bonds payable, or repurchase any of its own common stock during the year.
The company declared and paid a cash dividend of $4,000.
Required:
a. Prepare the operating activities section of the company’s statement of cash flows for the year.
(Use the indirect method.)
b. Prepare the investing activities section of the company’s statement of cash flows for the year.
c. Prepare the financing activities section of the company’s statement of cash flows for the year.
126
128) Mattix Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Cash and cash equivalents
$
23
$
22
Accounts receivable
39
40
Inventory
43
44
Property, plant, and equipment
587
500
Less accumulated depreciation
359
347
Total assets
$
333
$
259
Liabilities and stockholders’ equity:
Accounts payable
$
30
$
26
Accrued liabilities
15
18
Income taxes payable
39
40
Bonds payable
109
120
Common stock
51
50
Retained earnings
89
5
Total liabilities and stockholders’ equity
$
333
$
259
Income Statement
Sales
$
972
Cost of goods sold
620
Gross margin
352
Selling and administrative expense
200
Net operating incom
152
Gain on sale of equipment
14
Income before taxes
166
Income taxes
50
Net income
$
116
The company sold equipment for $20 that was originally purchased for $7 and that had
accumulated depreciation of $1. It paid a cash dividend during the year and did not issue any bonds
payable or repurchase any of its own common stock.
Required:
Determine the net cash provided by (used in) operating activities for the year using the indirect
method.
128
129) Beltram Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Assets:
Cash and cash equivalents
$
30
$
26
Accounts receivable
37
43
Inventory
67
63
Property, plant, and equipment
601
560
Less accumulated depreciation
377
360
Total assets
$
358
$
332
Liabilities and stockholders’ equity:
Accounts payable
$
42
$
46
Accrued liabilities
23
22
Income taxes payable
39
39
Bonds payable
141
170
Common stock
63
60
Retained earnings
50
(5
)
Total liabilities and stockholders’ equity
$
358
$
332
Income Statement
Sales
$
710
Cost of goods sold
437
Gross margin
273
Selling and administrative expense
176
Net Operating income
97
Income taxes
29
Net income
$
68
The company did not dispose of any property, plant, and equipment, issue any bonds payable, or
repurchase any of its own common stock during the year. The company declared and paid a cash
dividend of $13.
Required:
Prepare a statement of cash flows in good form using the indirect method.
130
130) Dauber Corporation’s comparative balance sheet and income statement for last year appear
below:
Comparative Balance Sheet
Ending
Balance
Beginning
Balance
Cash and cash equivalents
$
64,000
$
39,000
Accounts receivable
57,000
44,000
Inventory
58,000
70,000
Prepaid expenses
18,000
10,000
Long-term investments
290,000
230,000
Property, plant, and equipment
520,000
520,000
Less accumulated depreciation
390,000
358,000
Total assets
$
617,000
$
555,000
Accounts payable
$
14,000
$
38,000
Accrued liabilities
35,000
17,000
Income taxes payable
69,000
40,000
Bonds payable
160,000
180,000
Common stock
140,000
110,000
Retained earnings
199,000
170,000
Total liabilities and stockholders’ equity
$
617,000
$
555,000
Income Statement
Sales
$
580,000
Cost of goods sold
250,000
Gross margin
330,000
Selling and administrative expense
210,000
Net operating income
120,000
Income taxes
36,000
Net income
$
84,000
The company declared and paid a cash dividend of $55,000 during the year. It did not sell any
long-term investments, issue any bonds payable, or repurchase any of its own common stock.
Required:
a. Construct in good form the operating activities section of the company’s statement of cash flows
for the year.
b. Construct in good form the investing activities section of the company’s statement of cash flows
for the year.
c. Construct in good form the financing activities section of the company’s statement of cash flows
for the year.
131) Clayborn Corporation’s net cash provided by operating activities was $111,000; its net
income was $101,000; its income taxes were $43,000; its capital expenditures were $90,000; and
its cash dividends were $28,000.
Required:
Determine the company’s free cash flow.
132) Dukas Corporation’s net cash provided by operating activities was $218,000; its net income
was $203,000; its capital expenditures were $146,000; and its cash dividends were $49,000.
Required:
Determine the company’s free cash flow.