Exercise 4–16 (concluded)
Requirement 2
WAINWRIGHT CORPORATION
Statement of Cash Flows
For the Month Ended March 31, 2018
Cash flows from operating activities:
Collections from customers $ 55,000
Cash flows from investing activities:
Cash flows from financing activities:
Issuance of common stock 300 ,000
Noncash investing and financing activities:
Acquired $40,000 of equipment by paying cash and issuing a note as follows:
Exercise 4–17
Cash flows from operating activities:
Net income $624,000
Adjustments for noncash effects:
Depreciation and amortization expense 87,000
Changes in operating assets and liabilities:
Exercise 4–18
Cash flows from operating activities:
Net income $1,250,000
Adjustments for noncash effects:
Depreciation expense 140,000
Changes in operating assets and liabilities:
Exercise 4–19
Consistent with U.S. GAAP, international standards also require a statement
of cash flows. Consistent with U.S. GAAP, cash flows are classified as operating,
IAS No. 7, on the other hand, allows more flexibility. Companies can report
interest and dividends paid as either operating or financing cash flows and interest
Exercise 4–19 (concluded)
Accordingly, the statement of cash flows prepared according to IFRS mostly
likely would be presented as follows (differences from U.S. GAAP in italics):
BRONCO METALS
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flows from operating activities:
Collections from customers $ 353,000
Cash flows from investing activities:
Interest on note receivable 4,000
Cash flows from financing activities:
Payment of interest on note payable (8,000)
Exercise 4–20
TIGER ENTERPRISES
Statement of Cash Flows
For the Year Ended December 31, 2018
($ in thousands)
Cash flows from operating activities:
Net income $ 900
Adjustments for noncash effects:
Depreciation expense 240
Changes in operating assets and liabilities:
Cash flows from investing activities:
Purchase of plant and equipment (300)
Cash flows from financing activities:
Proceeds from issuance of common stock 100
Proceeds from note payable 200
Payment of dividends (1) (940)
(1)
Retained earnings, beginning $540
Exercise 4–21
The T-account analysis of the transactions related to operating cash flows is
shown below. To derive the cash flows, the beginning and ending balances in the
Exercise 4–21 (concluded)
TIGER ENTERPRISES
Statement of Cash Flows
For the Year Ended December 31, 2018
($ in thousands)
Cash flows from operating activities:
Collections from customers (a) $ 7,080
Prepayment of insurance (b) (130)
Exercise 4–22
Requirement 1
Requirement 2
The specific citation that describes the additional information for earnings per
Requirement 3
For each period for which an income statement is presented, an entity
discloses all of the following:
a. A reconciliation of the numerators and the denominators of the basic and
diluted per-share computations for income from continuing operations. The
c. Securities (including those issuable pursuant to contingent stock agreements)
that could potentially dilute basic EPS in the future that were not included in the
Exercise 4–22 (concluded)
For the latest period for which an income statement is presented, an entity must
provide a description of any transaction that occurs after the end of the most recent
period but before issuance of the financial statements that would have changed
materially the number of common shares or potential common shares outstanding