*PROBLEM 13-8A (Continued)
(2) Cash payments to suppliers
Cost of goods sold ……………………………………….. $175,000
Add: Increase in inventory ……………………………. 10,000
(3) Cash payments for operating expenses
Operating expenses ……………………………………… $ 24,000
(4) Cash payments for income taxes
Income tax expense ……………………………………… $ 8,000
PROBLEM 13-9A
SINJH INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income ………………………………………………… $172,900
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation expense ………………………….. $45,000
Gain on disposal of plant assets …………… (5,000)
Cash flows from investing activities
Sale of plant assets ……………………………………. 12,500
Cash flows from financing activities
Sale of common stock ………………………………… 45,000
Net increase in cash …………………………..……………… 51,950
*PROBLEM 13-10A
SINJH INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Cash receipts from customers …………. $332,980 (1)
Less cash payments:
To suppliers ……………………………… $100,410 (2)
For income taxes ………………………. 27,280
Cash flows from investing activities
Sale of plant assets …………………………. 12,500
Cash flows from financing activities
Sale of common stock ……………………… 45,000
Redemption of bonds ………………………. (40,000)
Net increase in cash ……………………………….. 51,950
Computations:
(1) Cash receipts from customers
Sales ……………………………………….. $392,780
*PROBLEM 13-10A (Continued)
(2) Cash payments to suppliers
Cost of goods sold ………………………………………… $135,460
(3) Cash payments for operating expenses
Operating expenses exclusive of
depreciation …………………………..………… $ 12,410
PROBLEM 13-11A
STRACKMAN LUX COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income ………………………………………………….. $ 45,000
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation expense ……………………………. $40,000
Loss on disposal of plant assets ……………. 6,000*
Cash flows from investing activities
Sale of land …………………………………………………. 20,000
Cash flows from financing activities
Net increase in cash ……………………………………………. 14,520
Noncash investing and financing activities
*PROBLEM 13-12A
JHUTTI COMPANY
Worksheet—Statement of Cash Flows
For the Year Ended December 31, 2014
Balance
12/31/13
Reconciling Items
Balance Sheet Accounts
Debit
Credit
Debits
Cash
Accounts receivable
Inventory
Investments
Plant assets
Totals
47,250
57,000
102,650
87,000
205,000
498,900
(m) 43,050
(a) 23,900
(b) 19,250
(f) 92,000
(e) 3,000
(h) 47,000
Credits
Accumulated depreciation—plant assets
Accounts payable
Accrued expenses payable
Bonds payable
Common stock
Retained earnings
Totals
40,000
48,280
18,830
70,000
200,000
121,790
498,900
(h) 41,300
(d) 6,730
(l) 80,600
(g) 47,900
(c) 5,120
(i) 30,000
(j) 40,000
(k) 133,810
Statement of Cash Flow Effects
Operating activities
Net income
Increase in accounts receivable
Increase in inventory
Increase in accounts payable
Decrease in accrued expenses payable
Depreciation expense
Gain on disposal of plant assets
Investing activities
Sale of investments
Sale of plant assets
Purchase of plant assets
Financing activities
Sale of common stock
Issuance of bonds
Payment of dividends
Totals
Increase in cash
Totals
580,910
580,910
(k) 133,810
(c) 5,120
(g) 47,900
(e) 3,000
(h) 14,250
(j) 40,000
(i) 30,000
580,910
(a) 23,900
(b) 19,250
(d) 6,730
(h) 8,550
(f) 92,000
(l) 80,600
537,860
(m) 43,050
PROBLEM 13-1B
Transaction
SCF Activity
Affected
Cash inflow, outflow,
or no cash flow effect?
(a)
Recorded depreciation expense on
the plant assets.
O
No cash flow effect
(b)
Incurred a loss on disposal of plant
assets.
O
No cash flow effect
(c)
Acquired a building by paying cash.
I
Cash outflow
(d)
Made principal repayments on a
mortgage.
F
Cash outflow
(e)
Issued common stock
F
Cash inflow
(f)
Purchased shares of another
company to be held as a long-term
equity investment.
I
Cash outflow
(g)
Paid cash dividends to common
stockholders.
F
Cash outflow
(h)
Sold inventory on credit. The company
uses a perpetual inventory system.
O
No cash flow effect
(i)
Purchased inventory on credit.
O
No cash flow effect
(j)
Paid wages to employees.
O
Cash outflow
PROBLEM 13-2B
(a) Cash inflows (outflows) related to plant assets 2014:
Equipment purchase ($90,000)
Accumulated Depreciation—
Equipment
93,000
Plug 12,000
64,000
Depreciation Expense
145,000
standing this exercise.
Equipment …………………………………………………….. 90,000
Cash ………………………………………………………. 90,000
Land……………………………………………………………… 30,000
Cash ………………………………………………………. 30,000
Cash (plug) …………………………………………………… 21,000
(b) Equipment purchase Investing activities (outflow)
Land purchase Investing activities (outflow)
PROBLEM 13-3B
ASQUITH COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income ………………………………………………… $ 880,000
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation expense ………………………….. $ 95,000
Amortization expense ………………………….. 20,000
Decrease in accounts receivable ………….. 230,000
*PROBLEM 13-4B
ASQUITH COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Cash receipts from customers……… $5,480,000 (1)
Less cash payments:
Computations:
(1) Cash receipts from customers
Sales ………………………………………………………… $5,250,000
(2) Cash payments to suppliers
Cost of goods sold ……………………………………. $3,310,000
(3) Cash payments for operating expenses
Operating expenses ……………… $ 945,000
Add: Increase in prepaid
expenses …………………….. $ 125,000