Student Name:
+
Class:
–
NE
Purchase of treasury stock
Net cash flows from financing activities
Net increase (decrease) in cash
Cash at the beginning of the period
Payment of dividends
Issuance of common stock
Issuance of long-term notes payable
Cash Flows from Financing Activities
8,650
(39,865)
(31,215)
Cash received from sale of land
Purchase of equipment
Net cash flows from investing activities
Cash Flows from Investing Activities
McGraw-Hill/Irwin
Instructor
For the Year Ended December 31, 2021
Statement of Cash Flows
ATM SOFTWARE DEVELOPERS
Problem 11-02
Requirement 1:
Decrease in inventory
Decrease in prepaid rent
Decrease in accounts payable
Net cash flows from operating activities
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net
Depreciation expense
Increase in accounts receivable
3,765$
8,650$
Purchase of treasury stock
Issuance of long-term notes payable
Purchase of equipment
Decrease in inventory
Decrease in prepaid rent
Payment of dividends
Net income
Depreciation expense
Decrease in accounts payable
13,075
Given Data P11-02:
Cash received from the sale of land
Issuance of common stock
Statement of Cash Flow line items:
Net income
Adjustments to reconcile net income to net
cash flows from operating activities:
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
Net increase (decrease) in cash
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Cash Flows from Operating Activities
Cash at the beginning of the period
Net cash flows from financing activities
Net increase (decrease) in cash
Cash at the beginning of the period
Note: Noncash Activities
Student Name:
Class:
104,000$
37,000
(115,000)
31,000
(84,000)
(30,000)
Purchase investment in bonds
Proceeds from sale of land
Payment of cash dividends
Net cash flows from investing activities
Cash Flows from Financing Activities
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Net income
Adjustments to reconcile net income to net cash flows
Depreciation expense
from operating activities:
For the Year Ended December 31, 2021
Problem 11-04
McGraw-Hill/Irwin
Instructor
VIDEO PHONES INC.
Statement of Cash Flows
Requirement 1:
Net cash flows from operating activities
Loss (on sale of land)
Increase in accounts receivable
Decrease in inventory
Increase in prepaid rent
Decrease in accounts payable
Decrease in interest payable
Increase in income tax payable
3,636,000$
2,450,000$
104,000$
2021 2020
Land
Equipment
Accumulated depreciation
Total Assets
Long-Term Assets:
Investments
Accounts receivable
Prepaid rent
254,600$ 227,800$
Notes payable
Stockholders’ Equity:
Common stock
Retained earnings
Total Liabilities and Stockholders’ Equity
Long-Term Liabilities:
75,000$ 91,000$
7,000 12,000
16,000 15,000
115,000$
31,000$
Given Data P11-04:
Additional information for 2021:
Liabilities and Stockholders’ Equity
Assets
1. Purchase investment in bonds
2. Sell land:
Selling price
Current Liabilities:
Accounts payable
Interest payable
Income tax payable
Net Income
VIDEO PHONES, INC.
Current Assets:
Cash
Balance Sheets
December 31
VIDEO PHONES, INC.
For the Year Ended December 31, 2021
Income Statement
Net Sales
Expenses:
Cost of goods sold
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Operating expenses
Depreciation expense
Student Name:
Class:
4,108$
2,624$
Correct!
4,108$ Correct!
(38)
4,070$
2,624$ Correct!
2,585$
1,158$ Correct!
1,163$
+Decrease in income tax payable
=Cash paid for income taxes
Income tax expense
Operating expenses
Cost of goods sold
-Decrease in inventory
=Purchases
+Decrease in accounts payable
=Cash paid to suppliers
+Increase in prepaid rent
=Cash paid for operating expenses
Net Sales
Calculations:
-Increase in accounts receivable
=Cash received from customers
Cost of goods sold
Expenses:
Net Sales
For the Year Ended December 31, 2021
Problem 11-08
McGraw-Hill/Irwin
Instructor
REVERSE LOGIC
Income Statement
Requirement 1: (use results from calculations below)
Net income
Total expenses
Income tax expense
Depreciation expense
Operating expenses
174$
from operating activities:
4,070$
Cash paid to suppliers
Cash paid for operating expenses
Cash paid for income taxes
Net cash flows from operating activities
Cash received from customers
REVERSE LOGIC
Given Data P11-08:
Cash Flows from Operating Activities (Direct method)
Cash Flows from Operating Activities (Indirect method)
Net income
Adjustments to reconcile net income to net cash flows
Depreciation expense
Increase in accounts receivable
Decrease in inventory
Increase in prepaid rent
Decrease in accounts payable
Decrease in income tax payable
Net cash flows from operating activities