PROBLEM 13-5B
ANNE DROID INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income …………………………………………………. $115,000
Adjustments to reconcile net income
to net cash provided by operating activities:
*PROBLEM 13-6B
ANNE DROID INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Cash receipts from customers…………. $566,000 (1)
Less cash payments:
(1) Computation of cash receipts from customers
Revenues ………………………………………………………………. $551,000
Add: Decrease in accounts receivable
(2) Computation of cash payments for operating expenses
Operating expenses ……………………………………………….. $400,000
(3) Income tax expense ……………………………………………….. $ 36,000
Deduct: Increase in income taxes payable
PROBLEM 13-7B
(a) ROCASTLE COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income ……………………………………………. $28,000
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation expense……………………… $ 6,000
Cash flows from investing activities
Sale of plant assets ……………………………….. 12,000
Cash flows from financing activities
Issuance of bonds …………………………………. 10,000
Net decrease in cash ……………………………………. (15,000)
(b) ($5,000) – $7,000 – $25,000 = ($37,000)
*PROBLEM 13-8B
(a) ROCASTLE COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Cash receipts from customers …….. $275,000 (1)
Less cash payments:
To suppliers ………………………… $236,000 (2)
For operating expenses
($37,000 – $6,000) …………….. 31,000
Cash flows from investing activities
Sale of plant assets …………………….. 12,000
Cash flows from financing activities
Issuance of bonds ………………………. 10,000
Net decrease in cash …………………………. (15,000)
Computations:
(1) Cash receipts from customers
Sales ………………………………………………………. $286,000
*PROBLEM 13-8B (Continued)
(2) Cash payments to suppliers
Cost of goods sold ……………………………………….. $204,000
(3) Cash payments for income taxes
Income tax expense ……………………………………… $ 10,000
(b) ($5,000) – $7,000 – $25,000 = ($37,000)
PROBLEM 13-9B
MINNIE HOOPER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income …………………………..………………….. $ 108,160
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation expense ………………………… $ 25,000
Loss on disposal of plant assets ………… 5,000
Cash flows from investing activities
Sale of investments ………………………………….. 27,500
Cash flows from financing activities
Issuance of bonds ……………………………………. 70,000
Sale of common stock …………………………..….. 50,000
Net increase in cash ………………………………………… 60,200
*PROBLEM 13-10B
MINNIE HOOPER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Cash receipts from customers …………. $271,300 (1)
Less cash payments:
To suppliers ……………………………… $ 112,990 (2)
Cash flows from investing activities
Sale of plant assets …………………………. 10,000
Sale of investments …………………………. 27,500
Cash flows from financing activities
Sale of common stock ……………………… 50,000
Issuance of bonds …………………………... 70,000
Net increase in cash ……………………………….. 60,200
*PROBLEM 13-10B (Continued)
Computations:
(1) Cash receipts from customers
Sales ……………………………………………………………………. $297,500
(2) Cash payments to suppliers
Cost of goods sold ……………………………………………….. $ 99,460
Add: Increase in inventory …………………………………… 21,850
(3) Cash payments for operating expenses
Operating expenses ……………………………………………… $ 19,670
PROBLEM 13-11B
VERNET COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income ………………………………………………….. $50,000
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation expense ……………………………. $ 57,000
Gain on disposal of plant assets ……………. (6,000)*
Cash flows from investing activities
Sale of land …………………………………………………. 35,000
Cash flows from financing activities
Payment of cash dividends …………………………... (82,940)
Noncash investing and financing activities
*($37,000 – $31,000)