Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 11 - Statement of Cash Flows
Exercise 11-15 (LO 11-7)
Peach Computer
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Cash received from customers
$2,058,000
Net sales
$2,050,000
+ Decrease in accounts receivable
8,000
= Cash received from customers
$2,058,000
Chapter 11 - Statement of Cash Flows
Exercise 11-16 (LO 11-7)
Net sales
$3,200,000
− Increase in accounts receivable
(55,000)
Exercise 11-17 (LO 11-7)
1.
($ in millions)
Net sales
$91,758
2.
Cost of goods sold
$69,278
Exercise 11-18 (LO 11-7)
Requirement 1
Situation
Sale
Revenue
Accounts Receivable
Increase (Decrease)
Cash Received
from Customers*
Requirement 2
1.
Cash
200
Sales Revenue
200
2.
Cash
170
Chapter 11 - Statement of Cash Flows
11-24 Financial Accounting, 5e
Exercise 11-19 (LO 11-7)
Requirement 1
Sit.
Cost of
Goods Sold
Inventory
Increase (Decrease)
Accounts Payable
Increase (Decrease)
Cash Paid
to Suppliers
1.
150
25
20
155
* Cash paid to suppliers = Cost of goods sold
+ Increase in Inventory
Requirement 2
1.
Cost of Goods Sold
150
Inventory
25
Accounts Payable
20
Cash
155
Chapter 11 - Statement of Cash Flows
Exercise 11-20 (LO 11-7)
Requirement 1
Sit.
Operating
Expenses
Prepaid Insurance
Increase (Decrease)
Salaries Payable
Increase (Decrease)
Cash Paid for
Operating Expenses
* Cash paid for operating expenses = Operating expenses
Requirement 2
1.
Operating Expenses
100
Prepaid Insurance
15
Salaries Payable
10
Cash
105
2.
Operating Expenses
100
Chapter 11 - Statement of Cash Flows
PROBLEMS: SET A
Problem 11-1A (LO 11-1)
Type of
Activity
Cash Inflow
or Outflow
Transaction
O
CO
1. Payment of employee salaries.
I
CI
2. Sale of land for cash.
O
CO
3. Purchase of rent in advance.
Chapter 11 - Statement of Cash Flows
Problem 11-2A (LO 11-1, 11-3, 11-4, 11-5)
ATM Software Developers
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Net income
$12,400
Adjustments to reconcile net income to net
Cash Flows from Investing Activities
Cash received from sale of land
8,650
Purchase of equipment
(39,865)
Net cash flows from investing activities
(31,215)
Cash Flows from Financing Activities
Issuance of common stock
13,075
Chapter 11 - Statement of Cash Flows
11-28 Financial Accounting, 5e
Problem 11-3A (LO 11-4)
Alliance Technologies
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Net income
$56,000
Adjustments to reconcile net income to net
Chapter 11 - Statement of Cash Flows
Problem 11-4A (LO 11-2, 11-3, 11-4, 11-5)
Video Phones, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Net income
$104,000
Adjustments to reconcile net income to net
Cash Flows from Investing Activities
Purchase investment in bonds
(115,000)
Cash Flows from Financing Activities
Payment of cash dividends
(30,000)
11-30 Financial Accounting, 5e
Problem 11-5A (LO 11-6)
Requirement 1
($ in millions)
Net Income
÷
Average
Total Assets
=
Return
on Assets
Requirement 2
($ in millions)
Operating
Cash Flows
÷
Average
Total Assets
=
Cash Return
on Assets
Requirement 3
($ in millions)
Operating
Cash Flows
÷
Net Sales
=
Cash Flow
to Sales
Requirement 4
Cyberdyne has a better return on assets, cash return on assets, cash flow to sales, and
asset turnover.
Chapter 11 - Statement of Cash Flows
*Problem 11-6A (LO 11-7)
Alliance Technologies
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Cash received from customers
$412,000
Net sales
$405,000
+ Decrease in accounts receivable
7,000
= Cash received from customers
$412,000
Cost of goods sold
$235,000
+ Increase in inventory
14,000
Chapter 11 - Statement of Cash Flows
11-32 Financial Accounting, 5e
*Problem 11-7A (LO 11-7)
Video Phones, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Cash received from customers
$3,614,000
Cash Flows from Investing Activities
Purchase investment in bonds
(115,000)
Proceeds from sale of land
31,000
Net cash flows from investing activities
(84,000)
Cash Flows from Financing Activities
Payment of cash dividends
(30,000)
Note: Noncash Activities
Purchase equipment issuing a note payable
$70,000
Chapter 11 - Statement of Cash Flows
Net sales
$3,636,000
− Increase in accounts receivable
(22,000)
= Cash received from customers
$3,614,000
Cost of goods sold
$2,450,000
− Decrease in inventory
(40,000)
= Purchases
2,410,000
Chapter 11 - Statement of Cash Flows
11-34 Financial Accounting, 5e
*Problem 11-8A (LO 11-3, 1-7)
Reverse Logic
Income Statement
For the Year Ended December 31, 2021
Net sales
$4,108
Expenses:
Cost of goods sold
$2,624
Net sales
$4,108
− Increase in accounts receivable
(38)
= Cash received from customers
$4,070
Chapter 11 - Statement of Cash Flows
PROBLEMS: SET B
Problem 11-1B (LO 11-1)
Type of
Activity
Cash Inflow
or Outflow
Transaction
F
CI
1. Issue common stock.
I
CI
2. Sale of land for cash.
F
CO
3. Purchase of treasury stock.
O
CI
4. Collection of an account receivable.
Chapter 11 - Statement of Cash Flows
11-36 Financial Accounting, 5e
Problem 11-2B (LO 11-1, 11-3, 11-4, 11-5)
CPU Hardware Designers
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Net income
$ 80,000
Adjustments to reconcile net income to net
Cash Flows from Investing Activities
Cash received from sale of land
4,000
Purchase of equipment
(230,000)
Net cash flows from investing activities
(226,000)
Cash Flows from Financing Activities
Issuance of common stock
300,000
Chapter 11 - Statement of Cash Flows
Problem 11-3B (LO 11-3)
Software Associates
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Net income
$78,000
Adjustments to reconcile net income to net
