METAGROBOLIZE INDUSTRIES
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Balance Sheet
Assets:
Cash 375 (15)205 580
Accounts receivable 450 (7)150 600
6 ,880
Liabilities:
Shareholders’ Equity:
Common stock 3,000
(13)150 3,150
X Noncash investing and financing activity.
Problem 21–17
Problem 21–17 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Statement of Cash Flows
Operating activities:
Net income (1)975
Adjustments for noncash effects:
Gain on sale of land (2)90
Depreciation expense—build (3)30
Net cash flows 1,395
Investing activities:
Net cash flows (720)
Financing activities:
Net cash flows (470 )
Totals 4,935 4,935
Problem 21–17 (concluded)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2018 ($ in 000s)
Cash flows from operating activities:
Net income $ 975
Adjustments for noncash effects:
Gain on sale of land (90)
Depreciation expense—building 30
Net cash flows from operating activities $1,395
Cash flows from investing activities:
Cash flows from financing activities:
Noncash investing and financing activities:
Use of land acquired by lease $150
ARDUOUS COMPANY
Problem 21–18
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Balance Sheet
Assets:
Cash 81 (24)28 109
Accounts receivable 194 (5) 4 190
1 ,074
1 ,211
Liabilities:
Accounts payable 65 (10)15 50
Salaries payable 11 (11)5 6
Shareholders’ Equity:
Common stock 410 (20)20 430
1 ,074
1 ,211
Problem 21–18 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Statement of Cash Flows
Operating activities:
Net income (1)67
Adjustments for noncash effects:
Depreciation expense (2)12
Patent amortization expense (3) 2
Net cash flows 82
Investing activities:
Net cash flows (31)
Financing activities:
Payment on lease liability (15) 7
Net cash flows (16 )
Net increase in cash (24) 28 28
Totals 588 588
Problem 21–18 (continued)
Arduous Company
Statement of Cash Flows
For year ended December 31, 2018 ($ in millions)
Cash flows from operating activities:
Net income $67
Adjustments for noncash effects:
Depreciation expense 12
Net cash flows from operating activities $ 82
Cash flows from investing activities:
Sale of machine components 17
Net cash flows from investing activities (31)
Cash flows from financing activities:
Payment on lease liability (7)
Net increase in cash 28
Problem 21–18 (concluded)
Noncash investing and financing activities:
Acquired $82 million building by 15-year lease.
Acquired $46 million of land by issuing cash and a 15%, 4-year note as
follows:
X Noncash investing and financing activity.
The following problems use the technique learned in Appendix 21–B.
BALANCE SHEET ACCOUNTS
Cash (Statement of Cash Flows)
_______________________________________________________________
13
Operating Activities:
From customers (1) 202 132(3)To suppliers of goods
Investing Activities:
Financing Activities:
Accounts Receivable Allowance for Uncollectible accounts
________________________ ________________________________
Inventory Dividends Receivable
________________________ ________________________________
Problem 21–19
Problem 21–19 (continued)
Long-term Investments Land
________________________ ________________________________
Buildings and Equipment Accumulated Depreciation
________________________ ________________________________
Accounts Payable Salaries Payable
________________________ ________________________________
Interest Payable Income Tax Payable
________________________ ________________________________
2 1
__________
Notes Payable Bonds Payable
________________________ ________________________________
30 25
Discount on Bonds Common Stock
________________________ ________________________________
Problem 21–19 (continued)
Paid-in Capital Retained Earnings
________________________ ________________________________
4 2
__________
Treasury Stock
________________________
X Noncash investing and financing activity.