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Part B
10. Lou’s Laundry and Dry Cleaning, Inc. has compiled the following information for preparing the
statement of cash flows. Prepare the statement of cash flows.
Given the following information, prepare the statement of cash flows for Mac’s Mobile Wash,,
Inc.
Collected Cash Data
cash collections from customers
22,150
cash dividends
2,140
cash collected from a note
6,000
cash payments for operations
12,340
cash purchase of equipment
16,200
Issue of capital stock for cash
30,000
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Lou’s Laundry and Dry Cleaning, Inc
Cash flows from operating activities:
cash received from customers
deduct cash payments for operating expenses
Net cash from operating activities
Net cash flows used for investing activities:
purchase of equipment
Net cash flows used for financing activities:
payment of dividends
issued capital stock
borrowed money on a note
Net change in cash
Ending cash, September 30
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CASE
PepsiCo’s Financial Statements
Answer the following question(s) using these selected portions of PepsiCo’s financial statements.
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1. Refer to PepsiCo’s Financial Statements. At the end of each accounting period, some accounts are
closed and some carry forward to the next period. All temporary accounts are closed into a
specific account. What account is that? Using the PepsiCo information, provide the numbers of
this account into which temporary accounts are closed each period.
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2. Refer to PepsiCo’s Financial Statements. As mentioned in Chapter 4, a trial balance is important to
determine if everything balances. Without a trial balance, we can still be assured that our
statements are in balance. Determine that the statements are in balance by making sure that the
numbers flow from one statement to another (the financial statements are interrelated).
3. Refer to PepsiCo’s Financial Statements. The statement of cash flows shows sources of cash
inflows and outflows. Did the Cash and cash equivalents account increase or decrease on the 2001
statement of cash flows? How or where else can we see if the cash account increased or
decreased?
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4. Following are selected data for Starbucks. This is part of their financial reporting and disclosure
on business segments. Does this information provide EBITDA data for the company? If so, what
is the EBITDA for each of the years shown.
Starbucks