Exercise 12-20A, Obj. 3 Students: Please fill-in areas that
Preparing the statement of cash flows — are shaded.
indirect method
Student Name
Course Name
Student ID:
Date:
The income statement and additional data of Bolton Travel Products, Inc., follow:
Revenues:
Service revenue……………………….. 237,000$
Dividend revenue…………………. 8,700 245,700$
Expenses:
Cost of goods sold ……………….. 100,000$
Salary expense …………………….. 59,000
Depreciation expense………….... 28,000
Advertising expense …………..…. 2,900
Interest expense …………………… 2,100
Income tax expense………………. 14,000 206,000
Net income ……………………..
39,700$
Additional data:
a. Acquisition of plant assets was $130,000. Of this amount, $75,000 was paid in cash and
$55,000 by signing a note payable.
b. Proceeds from sale of land totaled $25,000.
c. Proceeds from issuance of common stock totaled $50,000.
d. Payment of long-term note payable was $16,000.
e. Payment of dividends was $11,000.
f. From the balance sheet:
2012 2011
Current Assets:
Cash……………………………….. 125,000$ 50,800$
Accounts receivable ……..……. 41,000 57,000
Inventory…………………………. 94,000 73,000
Prepaid expenses……………….. 9,200 8,700
Current Liabilities:
Accounts payable……..……..… 32,000$ 18,000$
Accrued liabilities ……………… 82,000 57,000
Financial Accounting
Bolton Travel Products, Inc.
Income Statement
Years Ended December 31, 2012
December 31,
Exercise 12-20A
Instructions:
1. Prepare Bolton’s statement of cash flows for the year ended December 31, 2012, using the
indirect method. indirect method.
2.
Requirement 1
Cash flows from operating activities:
Net income …………………………………………………………………………………… 39,700$
Adjustments to reconcile net income to
net cash provided by operating activities:
Decrease in accounts receivable………………………….. 16,000
16,000
Net cash provided by operating activities………… FORMULA
Cash flows from investing activities:
Net cash used for investing activities………………… –
Cash flows from financing activities:
Proceeds from issuance of common stock…………… 50,000$
Net cash provided by financing activities…………..
Net increase in cash……………………………………………………….
Cash balance, December 31, 2011…………………………………
Cash balance, December 31, 2012…………………………………
Noncash investing and financing activities:
Requirement 2
Bolton Travel Products, Inc.
Statement of Cash Flows
Year Ended December 31, 2012
Enter explanation here.
Test Your Knowledge
Evaluate Bolton’s cash flows for the year. In your evaluation, mention all three categories of cash flows
and give the reason for your evaluation.
Exercise 12-20A, Obj. 3
Student Name
Course Name
Student ID:
Date:
The income statement and additional data of Nyman Travel Products, Inc., follow:
Revenues:
234,000$
Dividend revenue…………………. 8,300 242,300$
Expenses:
Cost of goods sold ……………….. 103,000$
Salary expense …………………….. 62,000
Depreciation expense……………. 33,000
Advertising expense ……………… 4,300
Interest expense …………………… 2,100
Income tax expense………………. 8,000 212,400
Net income …………….………. 29,900$
Additional data:
a. Acquisition of plant assets was $134,000. Of this amount, $90,000 was paid in cash and
$44,000 by signing a note payable.
b. Proceeds from sale of land totaled $34,000.
c. Proceeds from issuance of common stock totaled $60,000.
d. Payment of long-term note payable was $14,000.
e. Payment of dividends was $12,000.
f. From the balance sheet:
2016 2015
Current Assets:
Cash……………………………….. 165,000$ 68,000$
Accounts receivable …………… 42,000 56,000
Inventory…………………………. 48,000 61,000
Prepaid expenses……………….. 9,600 8,700
Current Liabilities:
Accounts payable………………. 38,000$ 25,000$
Accrued liabilities ……………… 99,000 82,000
Students: Please fill-in areas that are shaded.
Preparing the statement of cash flows —
indirect method
Financial Accounting
Nyman Travel Products, Inc.
Income Statement
Years Ended December 31, 2016
December 31,
Exercise 12-20A
Instructions:
1. Prepare Nyman’s statement of cash flows for the year ended December 31, 2016, using the
indirect method.
2.
Requirement 1
Cash flows from operating activities:
Net income …………………………………………………………………………………… 29,900$
Adjustments to reconcile net income to
net cash provided by operating activities:
Decrease in accounts receivable………………………….. 14,000
14,000
Net cash provided by operating activities………… FORMULA
Cash flows from investing activities:
Net cash used for investing activities………………… –
Cash flows from financing activities:
Proceeds from issuance of common stock…………… 60,000$
Net cash provided by financing activities…………..
Net increase in cash……………………………………………………….
Cash balance, December 31, 2015…………………………………
Cash balance, December 31, 2016…………………………………
Noncash investing and financing activities:
Requirement 2
Test Your Knowledge
Evaluate Nyman’s cash flows for the year. In your evaluation, mention all three categories of cash
flows and give the reason for your evaluation.
Nyman Travel Products, Inc.
Statement of Cash Flows
Year Ended December 31, 2016
Enter explanation here.
Exercise 12-20A, Obj. 3
Student Name
Course Name
Student ID:
Date:
The income statement and additional data of Nyman Travel Products, Inc., follow:
Revenues:
Service revenue……………………….. 234,000$
Dividend revenue…………………. 8,300 242,300$
Expenses:
Cost of goods sold ……………….. 103,000$
Salary expense …………………….. 62,000
Financial Accounting
Nyman Travel Products, Inc.
Income Statement
Years Ended December 31, 2016
Students: Please fill-in areas that are shaded.
Preparing the statement of cash flows — indirect
method
Exercise 12-20A
Instructions:
1. Prepare Nyman’s statement of cash flows for the year ended December 31, 2016, using the
indirect method.
2.
Requirement 1
Cash flows from operating activities:
Net income …………………………………………………………………………………… 29,900$
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation expense 33,000$
Decrease in accounts receivable………………………….. 14,000
Decrease in inventory 13,000
Test Your Knowledge
Nyman Travel Products, Inc.
Statement of Cash Flows
Year Ended December 31, 2016
Evaluate Nyman’s cash flows for the year. In your evaluation, mention all three categories of cash flows
and give the reason for your evaluation.
Exercise 12-25A, Obj. 4
Student Name
Course Name
Student ID:
Date:
The income statement and additional data of Value World, Inc., follow:
Revenues:
Sales revenue……………………….. 275,000$
Dividend revenue…………………. 8,500 283,500$
Expenses:
Cost of goods sold …….…………. 110,000$
Salary expense …………………….. 60,000
Depreciation expense……………. 22,000
Advertising expense ……………… 13,000
Interest expense …………………… 2,200
Income tax expense.……………… 8,000 215,200
Net income …………………….. 68,300$
Additional data:
a. Collections from customers are $12,000 more than sales.
b. Payments to suppliers are $2,300 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,500 less than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
f. Proceeds from sale of land total $29,000.
g. Proceeds from issuance of common stock total $31,000.
h. Payment of long-term note payable is $17,000.
i. Payment of dividends is $12,500.
j. Cash balance, June 30, 2015, was $25,000.
Students: Please fill-in areas that are shaded.
Prepare the statement of cash flows — direct method
Financial Accounting
Value World, Inc.
Income Statement
Year Ended June 30, 2016
e. Acquisition of plant assets is $210,000. Of this amount, $110,000 is paid in cash and $100,000 by signing a
long-term note payable.
Exercise 12-25A
Instructions:
1.
2.
Cash flows from operating activities:
Receipts:
Collections from customers……………………………………………………. 263,000$
Dividend received………………………………………………………………….. 8,500
Total cash receipts ……………………………………………………………… 271,500
Payments:
Total cash payments…………………………………………………………. FORMULA
Net cash provided by operating activities……………………………
Cash flows from investing activities:
Net cash used for investing activities………………………………… FORMULA
Cash flows from financing activites:
Proceeds from issuance of common stock……………………….. 31,000$
Net cash provided by financing activities……………………..
Net increase in cash…………………………………………………………………
Cash balance, June 30, 2015…………………………………………………….
Cash balance, June 30, 2016…………………………………………………….
Noncash investing and financing activities:
Requirement 2
Statement of Cash Flows
Year Ended June 30, 2016
Enter explanation here.
Test Your Knowledge
Value World, Inc.
Prepare Value World, Inc.’s statement of cash flows and accompanying schedule of non-cash investing and
financing activities. Report operating activities by the direct method.
Evaluate Value World’s cash flows for the year. In your evaluation, mention all three categories of cash flows
and give the reason for your evaluation.
Solution
Exercise 12-25A, Obj. 4
Student Name
Course Name
Student ID:
Date:
The income statement and additional data of Value World, Inc., follow:
Revenues:
Sales revenue……………………….. 275,000$
Dividend revenue…………………. 8,500 283,500$
Expenses:
Cost of goods sold ……………….. 110,000$
Salary expense …………………….. 60,000
Depreciation expense……………. 22,000
Advertising expense ……………… 13,000
Interest expense …………………… 2,200
Income tax expense………………. 8,000 215,200
Net income …………….………. 68,300$
Additional data:
a. Collections from customers are $12,000 more than sales.
b. Payments to suppliers are $2,300 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,500 less than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
f. Proceeds from sale of land total $29,000.
g. Proceeds from issuance of common stock total $31,000.
h. Payment of long-term note payable is $17,000.
i. Payment of dividends is $12,500.
j. Cash balance, June 30, 2015, was $25,000.
Financial Accounting
Value World, Inc.
Income Statement
Year Ended June 30, 2016
e. Acquisition of plant assets is $210,000. Of this amount, $110,000 is paid in cash and $100,000 by signing a
long-term note payable.
Students: Please fill-in areas that are shaded.
Prepare the statement of cash flows — direct method
ACCT121 ID 503
Solution
Exercise 12-25A
Instructions:
1.
2.
Cash flows from operating activities:
Receipts:
Collections from customers……………………………………………………. 263,000$
Dividend received………………………………………………………………….. 8,500
Total cash receipts ……………………………………………………………… 271,500
Payments:
To suppliers ($110,000 + $13,000 – $2,300) (120,700)$
To employees ($60,000 + $1,500) (61,500)
Value World, Inc.
Statement of Cash Flows
Year Ended June 30, 2016
Prepare Value World, Inc.’s statement of cash flows and accompanying schedule of non-cash investing and
financing activities. Report operating activities by the direct method.
Evaluate Value World’s cash flows for the year. In your evaluation, mention all three categories of cash flows
and give the reason for your evaluation.
Test Your Knowledge
ACCT121 ID 503
Problem 12-60A, Obj. 2, 3
Student Name
Course Name
Student ID:
Date:
2016 2015
Current Accounts:
Current assets:
Cash and cash equivalents ……………. 105,800$ 20,000$
Accounts receivable …………………….. 18,000 64,100
Inventories……..……………………..…… 8,600 86,000
Prepaid expenses…….…………………… 2,900 1,600
Current liabilities:
Accounts payable………….…………….. 9,300$ 55,400$
Income tax payable……………..………. 28,600 16,600
Accrued liabilities ….…………..……….. 15,000 27,400
Transaction Data for 2016:
Acquisition of land by issuing Purchase of treasury stock ….. 14,100$
long-term note payable ….. 202,000$ Loss on sale of equipment ….. 32,000
Stock dividends ……….……….. 34,900 Payment of cash dividends …. 46,000
Collection of loan….………….. 12,400 Issuance of long-term note
Depreciation expense ……..…. 19,000 payable to borrow cash….. 52,200
Purchase of building….………. 159,000 Net income……….………….... 58,000
Retirement of bonds payable Issuance of common stock
by issuing common stock …. 80,000 for cash ……………………… 83,100
Purchase of long-term Procedes from sale of
investment……….…………... 45,300 equipment ……..…………... 12,300
Amortization expense………. 5,500
Students: Please fill-in areas that are shaded.
Prepare the statement of cash flows — Indirect method
Financial Accounting
December 31,
Carlson Software Corp. has assembled the following data for the years ending December 31, 2016 and 2015.
Problem 12-60A
Instructions:
Cash flows from operating activites:
Net income……………………………………………………………………………………….. 58,000$
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation…………………………………………………………………… 19,000$
19,000
Net cash provided by operating activities……………………….
Cash flows from investing activities:
Net cash used for investing activities…………………………..
Cash flows from financing activities:
Net cash provided by financing activities –
Net increase in cash………………………………………………………………….
Cash balance, December 31, 2015……………………………………………
Cash balance, December 31, 2016……………………………………………
Noncash investng and financing activities:
Total noncash investing and financing activities…………………………
Test Your Knowledge
Carlson Software Corp.
Statement of Cash Flows
Year Ended December 31, 2016
1. Prepare Carlson Software Corp.’s statement of cash flows using the indirect method to report operating activities.
Include an accompanying schedule of non-cash investing and financing activities.
Problem 12-60A, Obj. 2, 3
Student Name
Course Name
Student ID:
Date:
2016 2015
Current Accounts:
Current assets:
Cash and cash equivalents ……………. 105,800$ 20,000$
Accounts receivable …………………….. 18,000 64,100
Inventories…………………………………. 8,600 86,000
Prepaid expenses…………………………. 2,900 1,600
Current liabilities:
Accounts payable………………………… 9,300$ 55,400$
Income tax payable……………………… 28,600 16,600
Accrued liabilities ……………………….. 15,000 27,400
Transaction Data for 2016:
Acquisition of land by issuing Purchase of treasury stock ….. 14,100$
long-term note payable ….. 202,000$ Loss on sale of equipment ….. 32,000
Stock dividends ………………… 34,900 Payment of cash dividends …. 46,000
Collection of loan……………… 12,400 Issuance of long-term note
Depreciation expense ………… 19,000 payable to borrow cash….. 52,200
Purchase of building………..… 159,000 Net income…………………….. 58,000
Retirement of bonds payable Issuance of common stock
by issuing common stock …. 80,000 for cash ……………………… 83,100
Purchase of long-term Procedes from sale of
investment……………………. 45,300 equipment ………………….. 12,300
Amortization expense………. 5,500
Students: Please fill-in areas that are shaded.
Prepare the statement of cash flows — Indirect method
December 31,
Financial Accounting
Carlson Software Corp. has assembled the following data for the years ending December 31, 2016 and 2015.
ACC105 ID503
Problem 12-60A
Instructions:
Cash flows from operating activites:
Net income……………………………………………………………………………………….. 58,000$
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation…………………………………………………………………… 19,000$
Amortization expense 5,500$
Loss on sale of equipment 32,000$
Decrease in accounts receivable 46,100$
Statement of Cash Flows
Year Ended December 31, 2016
Test Your Knowledge
Carlson Software Corp.
1. Prepare Carlson Software Corp.’s statement of cash flows using the indirect method to report operating activities. Include
an accompanying schedule of non-cash investing and financing activities.
ACC105 ID503
Decrease in inventores 77,400$
Increase in prepaid expenses (1,300)$
Decrease in accounts payable (46,100)
Increase in income tax payable 12,000
Cash flows from investing activities:
Purchase of building (159,000)$
Purchase of long-term investment (45,300)$
Proceeds from sale of equipment 12,300$
Cash flows from financing activities:
Inssuance of common stock 83,100$
Issuance of long-term note payable 52,200$
Payment of cash dividends (46,000)$
Purchase of treasury stock (14,100)
Net cash provided by financing activities 75,200
Net increase in cash…………………………………………………………………. 85,800$
Cash balance, December 31, 2015…………………………………………… 20,000
Noncash investng and financing activities:
Problem 12-61A, Obj. 2, 3
Student Name
Course Name
Student ID:
Date:
2016 2015
Current assets:
Cash and cash equivalents ……………
45,400$ 14,500$
Accounts receivable …………………….
14,500 22,200
Inventories………………………………… 63,800 61,200
Prepaid expenses…………………………
3,100 2,200
Current liabilities:
Accounts payable……………………….. 57,300$ 55,600$
Accrued liabilities ………………………. 32,700 46,700
Income tax payable…………………….. 9,800 10,900
Mystic Movie Theater’s transactions during the year ended June 30, 2016, included the following:
Acquisition of land Sale of long-term investment. 15,500$
by issuing note payable ….. 104,000$ Depreciation expense ………… 15,200
Amortization expense………… 5,000 Cash purchase of building ….. 44,000
Payment of cash dividend…… 28,000 Net income………………………. 54,000
Cash purchase of Issuance of common
equipment ……………………. 34,600 stock for cash……………….. 10,000
Issuance of long-term note Stock dividend………………….. 12,000
payable to borrow cash….. 47,000
Financial Accounting
Students: Please fill-in areas
that are shaded light-yellow.
Prepare the statement of cash flows – indirect method
June 30,
The comparative balance sheets of Canton Movie Theater Company at June 30, 2016, and 2015, reported the
following:
Problem 12-61A
Instructions:
Requirement 1
Cash flows from operating activities:
Net income……………………………………………………………………………………………
54,000$
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation……………………………………………………………. 15,200$
Net cash provided by operating activities……………………………………………….
Cash flows from investing activities:
Purchase of equipment……………………………………………………………… (34,600)$
Net cash used for investing activities…………………………..
Cash flow from financing activities:
Issuance of long-term note payable………………………………………….. 47,000$
Net cash provided by financing activities…………………….
Net (decrease) in cash……………………………………………………………………………… –
Cash balance, June 30, 2015………………………………………………………………….. 14,500
Cash balance, June 30, 2016………………………………………………………………….. 14,500$
Noncash investing and financing activities:
Requirement 2
Test Your Knowledge
Canton Movie Theater Company
Statement of Cash Flows
Year Ended June 30, 2016
Enter evaluation as required.
1. Prepare Canton Movie Theater Company’s statement of cash flows for the year ended June 30, 2016, using
the indirect method to report cash flows from operating activities. Report non-cash investing and financing
activities in an accompanying schedule.
2. Evaluate Canton Movie Theater’s cash flows for the year. Mention all three categories of cash flows and give
the reason for your evaluation.
Problem 12-61A, Obj. 2, 3
Student Name
Course Name
Student ID:
Date:
2016 2015
Current assets:
Cash and cash equivalents …………… 45,400$ 14,500$
Accounts receivable ……………………. 14,500 22,200
Inventories………………………………… 63,800 61,200
Prepaid expenses………………………… 3,100 2,200
Current liabilities:
Accounts payable……………………….. 57,300$ 55,600$
Accrued liabilities ………………………. 32,700 46,700
Income tax payable…………………….. 9,800 10,900
Mystic Movie Theater’s transactions during the year ended June 30, 2016, included the following:
Acquisition of land Sale of long-term investment. 15,500$
by issuing note payable ….. 104,000$ Depreciation expense ………… 15,200
Amortization expense………… 5,000 Cash purchase of building ….. 44,000
Payment of cash dividend…… 28,000 Net income………………………. 54,000
Cash purchase of Issuance of common
equipment ……………………. 34,600 stock for cash……………….. 10,000
Issuance of long-term note Stock dividend………………….. 12,000
payable to borrow cash….. 47,000
Students: Please fill-in areas that are
shaded light-yellow.
Prepare the statement of cash flows – indirect method
Financial Accounting
The comparative balance sheets of Canton Movie Theater Company at June 30, 2016, and 2015, reported the
following:
June 30,
BU 122 ID 50003
Problem 12-61A
Instructions:
Requirement 1
Cash flows from operating activities:
Net income……………………………………………………………………………………………
54,000$
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation……………………………………………………………. 15,200$
Amortization 5,000
Decrease in accounts receivable 7,700
Increase in inventories (2,600)
1. Prepare Canton Movie Theater Company’s statement of cash flows for the year ended June 30, 2016, using the
indirect method to report cash flows from operating activities. Report non-cash investing and financing activities in an
accompanying schedule.
2. Evaluate Canton Movie Theater’s cash flows for the year. Mention all three categories of cash flows and give the
reason for your evaluation.
Test Your Knowledge
Canton Movie Theater Company
Statement of Cash Flows
Year Ended June 30, 2016
BU 122 ID 50003
Increase in prepaid expenses (900)
Increase in accounts payable 1,700
Decrease in accrued liabilities (14,000)
Cash flows from investing activities:
Net (decrease) in cash……………………………………………………………………………… 30,900
Requirement 2