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Title: Problem 16-1A
QA_Ori:
Part 1
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Net income................................................................................$114,975
Adjustments to reconcile net income to net
Cash flows from investing activities
Cash flows from financing activities
Net decrease in cash.................................................................... $(23,700)
Noncash investing and financing activities
Purchased equipment for $96,375 by signing a $66,375 long-term note payable and
paying $30,000 in cash.
Part 2:
Forten Company's operations provide a positive net cash inflow of $40,900—a
good result. At the same time, the cash balance decreased by $23,700 (32%)
Helping fund these cash outflows is $50,000 cash from issuance of stock.
In summary, perhaps the company should review the wisdom of paying cash
Title: Problem 16-2AA
QA_Ori:
FORTEN COMPANY
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—debits
Cash...................................................
$ 73,500 $ 49,800
$485,800 $550,016
Balance sheet--credits
Accum. depreciation—Equip.................
$ 46,000 (g) 30,125 (f) 20,750 $ 36,625
Statement of cash flows
Operating activities
Net income.......................................... (a) 114,975
Investing activities
Financing activities
Noncash investing and financing
activities
Title: Problem 16-2AA
QA_Ori:
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Net income................................................................................$114,975
Adjustments to reconcile net income to net
cash provided by operating activities:
Cash flows from investing activities
Cash flows from financing activities
Cash borrowed on short-term note.............................................. 4,000
Net decrease in cash.................................................................... $(23,700)
Noncash investing and financing activities
Purchased equipment for $96,375 by signing a $66,375 long-term note payable and
paying $30,000 in cash.
Title: Problem 16-3AB
QA_Ori:
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Cash received from customers (Note 1)........................ $567,315
Cash flows from investing activities
Cash flows from financing activities
Cash borrowed on short-term note................................ 4,000
Net decrease in cash........................................................ $(23,700)
Noncash investing and financing activities
Purchased equipment for $96,375 by signing a $66,375 long-term note payable and
paying $30,000 in cash.
Supporting calculations
(2) Cost of Increase in Decrease in
goods sold inventory payables =
Title: Problem 16-4A
QA_Ori:
+
+
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Net income.........................................................................$136,000
Adjustments to reconcile net income to net
Cash flows from investing activities
Cash paid for equipment...................................................... (36,000)
Cash flows from financing activities
Title:Problem 16-5AA
QA_Ori:
GOLDEN 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--debits
Cash...................................................
$ 107,000 $ 164,000
Accounts receivable.............................. 71,000 (b) $ 12,000 83,000
Statement of cash flows
Operating activities
Net income.......................................... (a) 136,000
Title: Problem 16-5AA
QA_Ori:
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Net income.........................................................................$136,000
Adjustments to reconcile net income to net
Cash flows from investing activities
Cash paid for equipment...................................................... (36,000)
Title: Problem 16-6AB
QA_Ori:
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flows from operating activities
Cash received from customers (Note 1)......................$1,780,000
Cash flows from investing activities
Cash paid for equipment............................................ (36,000)
Supporting calculations
(2) Cost of Increase in Increase in
(3) Income taxes expense - Increase in income taxes payable
Title: Problem 16-7A
QA_Ori:
LANSING COMPANY
+
-
Cash Flows from Operating Activities—Indirect Method
For Year Ended December 31, 2013
Cash flows from operating activities
Net income................................................................................ $ 6,000
Adjustments to reconcile net income to net cash provided
by operating activities
Title: Problem 16-8AB
QA_Ori:
LANSING COMPANY
Cash Flows from Operating Activities—Direct Method
For Year Ended December 31, 2013
Cash flows from operating activities
Cash receipts from customers (1).............................................................$ 97,400
Net cash provided by operating activities.....................................................$ 17,780
Supporting calculations
(2) Cost of Increase in Decrease in
goods sold inventory accts payable =
(3) Salaries expense - Increase in salaries payable = $18,000 - ($880 - $700) = $17,820
+ +
