PROBLEM 13–7A
(a) NOSKER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income ………………………………………………… $32,000
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation expense …………………………... $14,500
Cash flows from investing activities
Cash flows from financing activities
Issuance of common stock ………………………….. 4,000
Redemption of bonds ………………………………….. (6,000)
Net increase in cash ………………………………………… 18,000
*PROBLEM 13–8A
(a) NOSKER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Cash receipts from customers …… $226,000 (1)
Less cash payments:
To suppliers ………………………. $173,000 (2)
For operating expenses ……… 9,500 (3)
Cash flows from financing activities
Issuance of common stock ……….. 4,000
Computations:
(1) Cash receipts from customers
Sales revenue …………………………………………. $242,000
*PROBLEM 13-8A (Continued)
(2) Cash payments to suppliers
Cost of goods sold ……………………………………….. $175,000
(3) Cash payments for operating expenses
(4) Cash payments for income taxes
PROBLEM 13–9A
CHENG INC.
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income ………………………………………………… $158,900
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation expense ………………………….. $46,500
Loss on disposal of plant assets ………….. 7,500
Increase in accounts payable ……………….. 44,700
Cash flows from investing activities
Sale of plant assets ……………………………………. 1,500
Cash flows from financing activities
Issuance of common stock …………………………. 45,000
Redemption of bonds …………………………………. (40,000)
*PROBLEM 13-10A
CHENG INC.
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Cash receipts from customers …………. $332,980 (1)
Less cash payments:
To suppliers ……………………………… $105,410 (2)
Cash flows from investing activities
Sale of plant assets …………………………. 1,500
Cash flows from financing activities
Issuance of common stock ………………. 45,000
Computations:
(1) Cash receipts from customers
Sales revenue …………………………... $392,780
*PROBLEM 13-10A (Continued)
(2) Cash payments to suppliers
Cost of goods sold ………………………………………… $135,460
Add: Increase in inventory …………………………….. 14,650
(3) Cash payments for operating expenses
Operating expenses exclusive of
depreciation …………………………………….. $ 12,410
PROBLEM 13-11A
ROTHLISBERGER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income …………………………..……………………… $ 42,000
Adjustments to reconcile net income
to net cash provided by operating activities
Cash flows from investing activities
Sale of land …………………………………………………. 25,000
Cash flows from financing activities
Noncash investing and financing activities
*PROBLEM 13-12A
OAKLEY 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
Investments
Equipment
Totals
47,250
57,000
102,650
87,000
205,000
498,900
(m) 35,450
(a) 33,800
(b) 24,250
(f) 97,000
(e) 2,500
(h) 47,000
82,700
90,800
126,900
84,500
255,000
639,900
Credits
Accumulated depreciation—equipment
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) 40,200
(d) 6,730
(l) 83,400
(g) 49,700
(c) 9,420
(i) 30,000
(j) 50,000
(k) 132,210
49,500
57,700
12,100
100,000
250,000
170,600
639,900
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 equipment
Financing activities
Issuance of common stock
Issuance of bonds
Payment of dividends
Totals
Increase in cash
Totals
(k) 132,210
(c) 9,420
(g) 49,700
(e) 2,500
(h) 15,550
(j) 50,000
(i) 30,000
610,210
610,210
(a) 33,800
(b) 24,250
(d) 6,730
(h) 8,750
(f) 97,000
(l) 83,400
574,760
(m) 35,450
610,210
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 2015:
Equipment purchase ($95,000)
Land purchase (30,000)
96,000
Plug 16,000
64,000
Depreciation Expense
144,000
Note to instructor—some students may find journal entries helpful in under–
standing this exercise.
Equipment …………………………………………………….. 95,000