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Title: Exercise 16-11B
QA_Ori:
IKIBAN, INC.
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 2013
Cash flows from operating activities
Cash received from customers (Note 1)............... $664,000
Cash paid for merchandise (Note 2)..................... (393,300)
(See notes on next page)
Notes
(1) Sales.................................................................................................................... $678,000
(2) Cost of goods sold............................................................................................... $411,000
(3) Other operating expenses................................................................................... $ 67,000
(4) Income taxes expense......................................................................................... $ 43,890
(5) Cost of equipment sold (Given)........................................................................... $ 48,600
Cost of equipment sold........................................................................................ $ 48,600
Equipment Accumulated Depreciation, Equipment
(7)
Retained Earnings
QA_Edit:
Title: Exercise 16-12
QA_Ori:
Cash flows from operating activities—indirect method
QA_Edit:
Title: Exercise 16-13
QA_Ori:
1. Cash flows from operating activities—indirect method
Net income (loss)...........................................................................................$ (16,000)
2. One reason for the net loss was depreciation expense. Depreciation expense
is added to net income to adjust for the effects of a noncash expense that was
3. Differences between cash flow from operations and net income can be
caused by various items. The most important causes for investors are
QA_Edit:
Title: Exercise 16-14
QA_Ori:
SCORETECK CORPORATION
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2013
December
31, 2012
Analysis of Changes December
31, 2013
Debit Credit
Balance sheet—debit bal. accounts
Cash................................................... $ 80,000 $ 60,000
$1,050,000
$1,150,000
Balance sheet—credit bal. accounts
Accum. depreciation—Plant assets........ $ 100,000 (c) 70,000 $ 170,000
Statement of cash flows
Operating activities
Net income.......................................... (a) 100,000
Investing activities
Financing activities
Title: Exercise 16-15B
QA_Ori:
FERRON COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Receipts from customers.............................................. $ 495,000
Cash flows from investing activities
Cash flows from financing activities
Payment to retire long-term notes payable................... (100,000)
Note No. ___
Noncash investing and financing activities
(1) Issued common stock to retire $185,500 of bonds payable.
(2) Purchased land financed with a $105,250 long-term note payable.
Title: Exercise 16-16B
QA_Ori:
1.
THOMAS CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Cash received from customers.............................................$5,000,000
Cash received from dividends............................................... 208,400
Cash flows from investing activities
Cash paid for purchases of machinery.................................(2,236,000)
Cash flows from financing activities
Cash received from issuing stock......................................... 1,540,000
Net increase in cash................................................................ $2,550,400
2.
a. (i) Financing section reported the largest cash inflow of $4,036,000.
(ii) Investing section reported the largest cash outflow of $2,566,000.
Title: Exercise 16-17
QA_Ori:
Interpretation: Both years’ ratios are good in that they are positive and at
Title: Exercise 16-18
QA_Ori:
PEUGEOT S.A.
Statement of Cash Flows (Indirect Method)
For Year Ended December 31, 2011
Cash flows from operating activities
Net income......................................................................... € 784
Adjustments to reconcile net income to net cash provided
by operating activities
