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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
