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EXERCISE 13-9
(a) RODRIQUEZ CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income .................................................... $ 18,300)
Adjustments to reconcile net income
to net cash provided by operating
activities
Cash flows from investing activities
Sale of equipment ........................................ 3,300)
*EXERCISE 13-10
Sales revenue ........................................................... $192,000)
Deduct: Increase in accounts receivable ............... (60,000)
Cash receipts from customers* ....................... $132,000
**
Accounts Receivable
Balance, Beginning of year 0
Revenues for the year 192,000
Cash receipts for year 132,000
Balance, End of year 60,000
**
Accounts Payable
Payments for the year 55,000
Balance, Beginning of year 0
Operating expenses for year 78,000
Balance, End of year 23,000
*EXERCISE 13-11
(a) Cash payments to suppliers
Cost of goods sold .................................. $4,852.7 million
(b) Cash payments for operating expenses
Operating expenses exclusive
Deduct: Increase in accrued
*EXERCISE 13-12
Cash flows from operating activities
Cash receipts from
$248,000*
Less cash payments:
To suppliers for merchandise ................... 115,000
*$48,000 + $182,000
*EXERCISE 13-13
Cash payments for rent
Rent expense ..................................................... $ 48,000*
Cash payments for salaries
Salaries expense................................................ $ 54,000*
Cash receipts from customers
Sales revenue .................................................... $175,000*
*EXERCISE 13-14
INTERNATIONAL COMPANY
Worksheet
Statement of Cash Flows
For the Year Ended December 31, 2015
Balance
12/31/14
Reconciling Items
Balance
12/31/15
Balance Sheet Accounts
Debit
Credit
Debits
Cash
Accounts receivable
Inventory
Land
Equipment
Total
22,000
76,000
189,000
100,000
200,000
587,000
(k) 51,000
(a) 9,000
(f) 50,000
(b) 9,000
(e) 25,000
73,000
85,000
180,000
75,000
250,000
663,000
Credits
Accumulated depreciation—equipment
Accounts payable
Bonds payable
Common stock
Retained earnings
Total
42,000
47,000
200,000
164,000
134,000
587,000
(c) 13,000
(h) 50,000
(g) 70,000
(d) 24,000
(i) 50,000
(j) 135,000
66,000
34,000
150,000
214,000
199,000
663,000
Statement of Cash Flow Effects
Operating activities
Net income
Increase in accounts receivable
Decrease in inventory
Decrease in accounts payable
Depreciation expense
Investing activities
Sale of land
Purchase of equipment
Financing activities
Payment of dividends
Redemption of bonds
Issuance of common stock
Totals
Increase in cash
Totals
(j) 135,000
(b) 9,000
(d) 24,000
(e) 25,000
(i) 50,000
486,000
486,000
(a) 9,000
(c) 13,000
(f) 50,000
(g) 70,000
(h) 50,000
435,000
(k) 51,000
486,000
SOLUTIONS TO PROBLEMS
PROBLEM 13-1A
Transaction
SCF Activity
Affected
Cash Inflow, Outflow,
or No Effect?
(a)
Recorded depreciation
expense on the plant assets.
O
No cash flow effect
(b)
Recorded and paid interest
expense.
O
Cash outflow
(c)
Recorded cash proceeds from
a disposal of plant assets.
I
Cash inflow
(d)
Acquired land by issuing
common stock.
NC
No cash flow effect
(e)
Paid a cash dividend to preferred
stockholders.
F
Cash outflow
(f)
Paid a cash dividend
to common stockholders.
F
Cash outflow
(g)
Recorded cash sales.
O
Cash inflow
(h)
Recorded sales on account.
O
No cash flow effect
(i)
Purchased inventory for cash.
O
Cash outflow
(j)
Purchased inventory on account.
O
No cash flow effect
PROBLEM 13-2A
(a) Net income can be determined by analyzing
the retained earnings account.
(b) Cash inflow from the issue of stock was $19,500 ($170,000 – $140,000 –
$10,500).
Common Stock
140,000
10,500
Stock Dividend
19,500
Shares Issued for Cash
170,000
use cash.
(c) Both of the above activities (issue of common stock and payment of
PROBLEM 13-3A
WHITLOCK COMPANY
Partial Statement of Cash Flows
For the Year Ended November 30, 2015
Cash flows from operating activities
Net income .......................................................... $1,650,000
Adjustments to reconcile net income
to net cash provided by operating activities
activities
*PROBLEM 13-4A
WHITLOCK COMPANY
Partial Statement of Cash Flows
For the Year Ended November 30, 2015
Cash flows from operating activities
Cash receipts from customers......... $7,500,000 (1)
Less cash payments:
Computations:
(1) Cash receipts from customers
Sales revenue ................................................... $7,700,000
(2) Cash payments to suppliers
Cost of goods sold ........................................... $4,900,000
(3) Cash payments for operating expenses
Operating expenses, exclusive
of depreciation ............................... $1,080,000*
Add: Increase in prepaid
PROBLEM 13-5A
ZUMBRUNN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income ........................................................... $230,000
Adjustments to reconcile net income
to net cash provided by operating activities
*PROBLEM 13-6A
ZUMBRUNN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Cash receipts from customers.......... $960,000 (1)
Less cash payments:
For operating expenses ............. $606,000 (2)
(1) Computation of cash receipts from customers
Service revenue ....................................................... $970,000
(2) Computation of cash payments for operating expenses
Operating expenses per income statement ........... $624,000
(3) Computation of cash payments for income taxes
Income tax expense per income statement ........... $ 40,000
