Chapter 12 – Statement of Cash Flows
Solutions Chapter 12 – Set B Exercises – Libby 8e
E12–1B.
Cash flows from operating activities—indirect method
Net income …………………………………………………………………………………..
$26,625
Depreciation expense ……………………………………………………………………
9,500
Accounts receivable decrease ($11,500 – $13,000) ………………………….
1,500
Inventory increase ($15,000 – $9,000) ……………………………………………
(6,000)
Salaries payable increase ($1,950 – $1,800) ……………………………………
150
Net cash provided by operating activities …………………………………….
$31,775
E12–2B.
Req. 1
Cash flows from operating activities—indirect method
Net loss ……………………………………………………………………………………….
$(5,900
)
Depreciation expense ……………………………………………………………………
8,000
Amortization of copyrights ………………………………………………………………
1,200
Accounts receivable decrease ($7,000 – $12,000) …………………………...
5,000
Salaries payable increase ($16,000 – $2,000) ………………………………….
14,000
Other accrued liabilities decrease ($1,500 – $5,700) ………………………….
(4,200
)
Net cash provided by operating activities …………………………………….
$18,100
© 2014 by McGraw-Hill Global Education Holdings, LLC. This is proprietary material solely for authorized instructor use. Not authorized for sale
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2
E12–3B.
Cash flows from operating activities—indirect method
Net income …………………………………………………………………………………..
$ 17,000
Depreciation expense ……………………………………………………………………
7,200
Loss on sale of equipment …………………………………………………………….
Accounts receivable decrease ($10,000 – $21,000) …………………………..
1,800
11,000
Salaries payable increase ($19,000 – $11,000) …………………………………
8,000
Other accrued liabilities decrease ($5,000 – $10,000) ………………………..
(5,000
)
Net cash provided by operating activities …………………………………….
$40,000
E12–4B.
Account
Change
Accounts receivable
Decrease
Inventories
Increase
Other current assets
Decrease
Accounts payable
Decrease
Deferred revenue
Increase
Other current liabilities
Decrease
E12–5B.
Req. 1
Cash flows from investing activities
Year 1
Year 2
Proceeds from sale of equipment …….
$17,864
$22,163
The amount reported in the cash flow from investing activities section of the statement
4
E12–7B.
Cash flows from operating activities—indirect method
Net income …………………………………………………………………………………..
$32,625
Depreciation expense ……………………………………………………………………
13,500
Accounts receivable decrease ($8,500 – $12,000) …………………………...
3,500
Inventory increase ($14,000 – $5,000) ……………………………………………
(9,000)
Salaries payable increase ($1,750 – $600) ………………………………………
1,150
Net cash provided by operating activities …………………………………….
$41,775
E12–8B.
Req. 1
Cash flows from operating activities—indirect method
Net loss …………………………..…………………………………………………………..
$(3,500
)
Depreciation expense ……………………………………………………………………
8,000
Amortization of copyrights ………………………………………………………………
700
Accounts receivable decrease ($4,000 – $15,000) …………………………...
11,000
Salaries payable increase ($15,000 – $3,000) ………………………………….
12,000
Other accrued liabilities decrease ($1,000 – $5,900) ………………………….
(4,900
)
Net cash provided by operating activities …………………………………….
$23,300
E12–9B.
Cash flows from operating activities—indirect method
Net income …………………………………………………………………………………..
$ 5,000
© 2014 by McGraw-Hill Global Education Holdings, LLC. This is proprietary material solely for authorized instructor use. Not authorized for sale
or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole
or part.
)
5
E12–10B.
Account
Change
Accounts receivable
Increase
Inventories
Decrease
Other current assets
Increase
Accounts payable
Increase
Deferred revenue
Decrease
Other current liabilities
Increase