Net income
Increase in accounts receivable
Decrease in inventory
Decrease in prepaid rent
Net cash flows from operating activities
Payment of dividends
Issuance of long-term notes payable
Purchase of treasury stock
Net cash flows from financing activities
Net increase (decrease) in cash
Cash at the beginning of the period
Student Name:
Class:
cash flows from operating activities:
5,465
8,650
13,075
Instructor
For the Year Ended December 31, 2018
Statement of Cash Flows
ATM SOFTWARE DEVELOPERS
Problem 11-02
Requirement 1:
Cash Flows from Operating Activities
Cash Flows from Investing Activities
McGraw-Hill/Irwin
Adjustments to reconcile net income to net
Depreciation expense
Cash received from sale of land
Issuance of common stock
Cash Flows from Financing Activities
Purchase of equipment
Net cash flows from investing activities
3,765$
Statement of Cash Flows
For the Year Ended December 31, 2018
ATM SOFTWARE DEVELOPERS
Cash Flows from Operating Activities
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
Given Data P11-02:
Statement of Cash Flow line items:
Cash at the beginning of the period
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
Cash received from the sale of land
Issuance of common stock
Depreciation expense
Increase in accounts receivable
Decrease in accounts payable
Sale of land
Payment of cash dividends
Net cash flows from investing activities
Cash Flows from Financing Activities
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
9,000
(115,000)
For the Year Ended December 31, 2018
Problem 11-04
McGraw-Hill/Irwin
Instructor
VIDEO PHONES INC.
Statement of Cash Flows
Requirement 1:
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Net income
Adjustments to reconcile net income to net cash flows
Depreciation expense
Loss (on sale of land)
from operating activities:
Purchase investment in bonds
Increase in accounts receivable
Decrease in inventory
Increase in prepaid rent
Decrease in interest payable
Increase in income tax payable
Net cash flows from operating activities
3,636,000$
2,450,000$
958,000
2018 2017
Long-Term Assets:
Investments
Inventory
Prepaid rent
Equipment
Accumulated depreciation
254,600$ 227,800$
92,000 70,000
Income tax payable
Long-Term Liabilities:
Notes payable
Stockholders’ Equity:
Common stock
Retained earnings
75,000$ 91,000$
115,000$
3. Purchase equipment on three-year note
4. Declare and pay cash dividend
Net Sales
Expenses:
Cost of goods sold
Operating expenses
VIDEO PHONES, INC.
For the Year Ended December 31, 2018
Income Statement
VIDEO PHONES, INC.
Current Assets:
Cash
Accounts receivable
Balance Sheets
December 31
Current Liabilities:
Accounts payable
Given Data P11-04:
Additional information for 2018:
Liabilities and Stockholders’ Equity
Assets
1. Purchase investment in bonds
2. Sell land:
Loss on sale of land
Income tax expense
Total expenses
Depreciation expense
Student Name:
Class:
4,108$
4,108$ Correct!
2,624$ Correct!
1,158$ Correct!
-Increase in accounts receivable
+Decrease in income tax payable
Income tax expense
Operating expenses
Cost of goods sold
-Decrease in inventory
+Decrease in accounts payable
+Increase in prepaid rent
For the Year Ended December 31, 2018
Problem 11-08
McGraw-Hill/Irwin
Instructor
REVERSE LOGIC
Income Statement
Requirement 1: (use results from calculations below)
Net Sales
Net Sales
Calculations:
2,624$
Total expenses
Income tax expense
Depreciation expense
Operating expenses
Cost of goods sold
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
from operating activities:
62
4,070$
Cash paid for operating expenses
Cash paid for income taxes
Net cash flows from operating activities
(2,585)
REVERSE LOGIC
Given Data P11-08:
Cash Flows from Operating Activities (Direct method)
Adjustments to reconcile net income to net cash flows
Depreciation expense
Cash received from customers
Cash paid to suppliers
Cash Flows from Operating Activities (Indirect method)
Net income