Title: Quick Study 16-18
QA_Ori:
2. IFRS and US GAAP differ on the classification of the following cash flows as
operating, investing or financing:
Cash flow source U.S. GAAP IFRS _
a. Interest paid Operating Financing or Operating
QA_Edit:
Title: Exercise 16-1
QA_Ori:
Statement of Cash Flows Noncash
Operating
Activities
Investing
Activities
Financing
Activities
Investing &
Financing
Activities
Not Reported
on Statement
or in Notes
a. Declared and paid a
cash dividend X
e. Accounts receivable
decreased in the year X
Title: Exercise 16-2B
QA_Ori:
Statement of Cash Flows Noncash
Operating
Activities
Investing
Activities
Financing
Activities
Investing &
Financing
Activities
Not Reported
on Statement
or in Notes
a. Retired long-term notes
payable by issuing stock
X
b. Paid cash toward accounts
payable
X
QA_Edit:
Statement of Cash Flows Noncash
Title: Exercise 16-3
QA_Ori:
Cash flows from operating activities
Net income……………………………………………………………………. $374,000
Adjustments to reconcile net income to net cash
provided by operating activities
QA_Edit:
Title: Exercise 16-4
QA_Ori:
Cash flows from operating activities
Net income……………………………………………………………………… $400,000
Adjustments to reconcile net income to operating cash flow
QA_Edit:
Title: Exercise 16-5B
QA_Ori:
Case X: Sales revenue…………………………………………………… $515,000
Accounts receivable, Dec. 31, 2013………………………$ 27,200
Case Y: Rent expense……………………………………………………. $139,800
Rent payable, Dec. 31, 2013………………………………..$ 7,800
Case Z: Cost of goods sold……………………………………………… $525,000
Merchandise inventory, Dec. 31, 2014…………………..$130,400
Title: Exercise 16-6
QA_Ori:
Cash flows from operating activities
Net income……………………………………………………………………. $ 481,540
Adjustments to reconcile net income to net cash
provided by operating activities
QA_Edit:
Title: Exercise 16-7B
QA_Ori:
Cash flows from operating activities
Receipts from customers (see note a)…………………………………………$1,797,500
Note a: Sales – Increase in receivables
Note b: Cost of goods sold + Increase in inventory + Decrease in accounts payable
Note c: Salaries expense + Decrease in salaries payable
Title: Exercise 16-8
QA_Ori:
Cash flows from investing activities
Cash received from the sale of equipment*…………………………………. $ 51,300
QA_Edit:
Title: Exercise 16-9
QA_Ori:
Cash flows from financing activities
Sale of common stock………………………………………………………………………… $ 64,000
Title: Exercise 16-10
QA_Ori:
Part 1
IKIBAN, INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2013
Cash flows from operating activities
Net income…………………………………………………………….$ 99,510
Adjustments to reconcile net income to net cash
provided by operating activities
Increase in accounts receivable………………………………..(14,000)
Decrease in merchandise inventory…………………………..22,700
Cash flows from investing activities
Cash flows from financing activities
Net increase in cash…………………………………………. $ 43,500
(Notes 1, 2, and 3 on next page.)
(1) Cost of equipment sold (Given)………………………………………………………………… $ 48,600
Accumulated depreciation of equipment sold*……………………………………………. (40 ,600)
Equipment Accumulated Depreciation, Equipment
(3)
Retained Earnings
Part 2
Cash flow on total assets ratio = Operating cash flows / Average total assets
Interpretation: A 49.6% result on the cash flow on total assets ratio is indicative