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
