PROBLEM 13–11B
PESTER COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net income ………………………………………………….. $47,890
Adjustments to reconcile net income
Cash flows from investing activities
Cash flows from financing activities
Noncash investing and financing activities
BYP 13-1 FINANCIAL REPORTING PROBLEM
(a) Net cash provided by operating activities:
(b) The decrease in cash and cash equivalents for the year ended September
(c) Apple uses the indirect method of computing and presenting the net
cash provided by operating activities.
(d) The change in accounts receivable provided cash of $143 million in 2011.
(e) The net cash used by investing activities in 2011 was $40,419 million.
(f) Under the “Supplemental cash flow disclosure” section cash flow
BYP 13-2 COMPARATIVE ANALYSIS PROBLEM
PepsiCo
(a)
$8,944 – $3,339 – $3,157 =
$2,448
$9,474 – $2,920 – $4,300 =
All amounts in millions
(b) The companies are similar in their ability to generate cash. Both had a
BYP 13-3 COMPARATIVE ANALYSIS PROBLEM
Amazon
Wal-Mart
(a)
$3,903 – $1,811 – $0 =
$2,092
$24,255 – $13,510 – $5,048 =
$5,697
All amounts in millions
(b) Both companies had a significant amount of “free cash” available after
BYP 13-4 REAL-WORLD FOCUS
(a) Crucial to the SEC’s effectiveness is its enforcement authority. Each
(b) The main purposes of these laws can be reduced to two common-sense
notions:
Companies publicly offering securities for investment dollars must
(c) President Franklin Delano Roosevelt appointed Joseph P. Kennedy,
President John F. Kennedy’s father, to serve as the first Chairman of
the SEC.
BYP 13-5 REAL-WORLD FOCUS
Answers will vary depending on the company chosen by the student.
BYP 13-6 DECISION MAKING ACROSS THE ORGANIZATION
(a) GUTHRIE COMPANY
Statement of Cash Flows
For the Year Ended January 31, 2015
Cash flows from operating activities
Net loss …………………………………………… $ (30,000)*
Adjustments to reconcile net income
Cash flows from investing activities
Sale of investment …………………………... 80,000
Cash flows from financing activities
Sale of capital stock …………………………. 420,000
Purchase of treasury stock ………………. (10,000)
Noncash investing and financing activities
BYP 13–6 (Continued)
*Computation of net income (loss)
Sales of merchandise ………………………… $380,000
Interest revenue…………………………………. 6,000
(b) From the information given, it appears that from an operating standpoint,
Guthrie Company did not have a superb first year, having suffered a