16.17 (Cypress Corporation; interpreting the statement of cash flows.)
a. Although net income increased between 2011 and 2013, the
b. The principal factors causing cash flow from operations to
increase in
Solutions
16.17 continued.
c. The firm has repaid both short- and long-term debt, likely
16.18 (LKR Company; deriving cash flows from financial statement
data; comprehensive review, including other comprehensive
income.) (amounts in US$)
Cash Flow from
O
pe
r
at
ions
………….. $ 181,500 [9]
Plug $181,500
Investing/Disinvesting:
Purchase of Securities Available
for Sale ………………………………..
(9,000) [8] Proceeds of Sale of Securities
Available for Sale …………………
7,300 [7] Purchase of
Land……………………… (11,000) [6]
Sale of Old Buildings and
Eq
ui
pm
en
t …………………………… 53,000 [5] See
be
low
Purchase of New Buildings and
Eq
ui
pm
en
t …………………………… (108,000
Financing:
16-47Solutions
16.18 continued.
f. $11,000 = $1,100 [Min Int Inc St]/0.10 (= 100.0% minus
Solutions16-48
16.18 continued.
l. –$67,000 = –$9,000 (purchase of securities; see Part c.) +
m. $181,500 = $13,000 + $100,800 + $67,700 = increase in
n. $1,356,000 = $1,500,000 – ($154,000 – $143,000) +
p. –$53,400 = expenditures of $53,400 = $90,400 – $18,000
q. LIFO [see balance sheet subtraction for adjustment from
FIFO to
r. $8,000 larger = $58,000 – $50,000 increase in Allowance
to Reduce
t. [e], but holding gains on inventory will become part of net
16-49Solutions
Solutions16-50
Financing:
16-47Solutions
16.18 continued.
f. $11,000 = $1,100 [Min Int Inc St]/0.10 (= 100.0% minus
Solutions16-48
16.18 continued.
l. –$67,000 = –$9,000 (purchase of securities; see Part c.) +
m. $181,500 = $13,000 + $100,800 + $67,700 = increase in
n. $1,356,000 = $1,500,000 – ($154,000 – $143,000) +
p. –$53,400 = expenditures of $53,400 = $90,400 – $18,000
q. LIFO [see balance sheet subtraction for adjustment from
FIFO to
r. $8,000 larger = $58,000 – $50,000 increase in Allowance
to Reduce
t. [e], but holding gains on inventory will become part of net
16-49Solutions
Solutions16-50