Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
but is provided as an aid in determining amounts for the statement.
Problem 14(13)-1A
Name:
Section:
Score:
Key Code:
0%
[Key code here]
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Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Net cash flow used for investing activities
Net cash flow from financing activities
Cash at the beginning of the year
Cash at the end of the year
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 585,920 625,760
Accounts receivable (net) 208,960 227,840
Inventories 617,120 641,760
Investments 240,000 –
Land – 328,000
Equipment 553,120 705,120
Accum. depr. – equipment (148,000) (166,400)
Accounts payable (404,960) (424,480)
Accrued expenses payable (52,640) (42,240)
Dividends payable (19,200) (24,000)
Common stock, $2 par (100,000) (150,000)
Paid-in capital in excess of par (280,000) (417,500)
Retained earnings (1,200,320) (1,303,860)
Totals – –
Operating activities:
Net income
Depreciation
Cash flows from investing activities:
Increase in cash
For the Year Ended December 31, 2016
CROMME INC.
Statement of Cash Flows
Transactions
Cash flows from financing activities:
For the Year Ended December 31, 2016
Spreadsheet (Work Sheet) for Statement of Cash Flows
CROMME INC.
Cash flows from operating activities:
Gain on sale of investments
Increase in accounts receivable
Increase in inventories
Increase in accounts payable
Decrease in accrued expenses payable
Investing activities:
Purchase of equipment
Purchase of land
Sale of investments
Financing activities:
Declaration of cash dividends
Sale of common stock
Increase in dividends payable
Net increase in cash
Totals
Instructions
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 199,540$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 18,400
(40,000)
Changes in current operating assets and liabilities:
(18,880)
(24,640)
19,520
(10,400)
Net cash flow from operating activities 143,540$
280,000$
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 585,920 (m) 39,840 625,760
Accounts receivable (net) 208,960 (l) 18,880 227,840
Inventories 617,120 (k) 24,640 641,760
CROMME INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
Problem 14(13)-1A
Name:
Section:
Gain on sale of investments
Increase in accounts receivable
Solution
ON
Score:
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
CROMME INC.
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Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Increase in accounts payable
Increase in inventories
Decrease in accrued expenses payable
Cash flows from investing activities:
Cash received from sale of investments
For the Year Ended December 31, 2016
Cash flows from financing activities:
Increase in cash
Less cash paid for purchase of land
Less cash paid for purchase of equipment
Cash received from sale of common stock
Less cash paid for dividends
Investments 240,000 (j) 240,000 –
Land – (i) 328,000 328,000
Equipment 553,120 (h) 152,000 705,120
Accum. depr. – equipment (148,000) (g) 18,400 (166,400)
Accounts payable (404,960) (f) 19,520 (424,480)
Accrued expenses payable (52,640) (e) 10,400 (42,240)
Gain on sale of investments (j) 40,000
Increase in accounts receivable (l) 18,880
Increase in inventories (k) 24,640
Increase in accounts payable (f) 19,520
Decrease in accrued expenses payable (e) 10,400
Investing activities:
Purchase of equipment (h) 152,000
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
but is provided as an aid in determining amounts for the statement.
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Net cash flow used for investing activities
Net cash flow provided by financing activities
Cash at the beginning of the year
Cash at the end of the year
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 47,940 70,720
Accounts receivable (net) 188,190 207,230
Inventories 289,850 298,520
Investments 102,000 –
Section:
Problem 14(13)-1B
For the Year Ended December 31, 2016
Score:
Key Code:
0%
[Key code here]
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MERRICK EQUIPMENT CO.
Statement of Cash Flows
Name:
Cash flows from operating activities:
Transactions
Cash flows from financing activities:
For the Year Ended December 31, 2016
Spreadsheet (Work Sheet) for Statement of Cash Flows
Cash flows from investing activities:
Increase in cash
MERRICK EQUIPMENT CO.
Land – 295,800
Equipment 358,020 438,600
Accum. depr. – equipment (84,320) (99,110)
Accounts payable (194,140) (205,700)
Accrued expenses payable (26,860) (30,600)
Dividends payable (20,400) (25,500)
Common stock, $1 par (102,000) (202,000)
Paid-in capital in excess of par (204,000) (354,000)
Retained earnings (354,280) (393,960)
Totals – –
Operating activities:
Net income
Depreciation
Loss on sale of investments
Increase in accounts receivable
Increase in inventories
Increase in accounts payable
Increase in accrued expenses payable
Investing activities:
Purchase of equipment
Purchase of land
Sale of investments
Financing activities:
Declaration of cash dividends
Sale of common stock
Increase in dividends payable
Net increase in cash
Totals
Instructions
Increase in cash
Cash received from sale of common stock
Less cash paid for dividends
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 141,680$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 14,790
10,200
91,800$
(295,800)
(80,580)
Net cash flow used for investing activities (284,580)
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 47,940 (m) 22,780 70,720
Accounts receivable (net) 188,190 (l) 19,040 207,230
Inventories 289,850 (k) 8,670 298,520
Less cash paid for purchase of land
Less cash paid for purchase of equipment
Cash flows from investing activities:
Cash received from sale of investments
Name:
Section:
Problem 14(13)-1B
Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Cash flows from financing activities:
Cells with non-gray backgrounds are protected and cannot be edited.
Loss on sale of investments
Solution
ON
For the Year Ended December 31, 2016
MERRICK EQUIPMENT CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
Score:
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
MERRICK EQUIPMENT CO.
Investments 102,000 (j) 102,000 –
Land – (i) 295,800 295,800
Operating activities:
Net income (a) 141,680
Depreciation (g) 14,790
Loss on sale of investments (j) 10,200
Increase in accounts receivable (l) 19,040
Increase in inventories (k) 8,670
Increase in accounts payable (f) 11,560
Increase in accrued expenses payable (e) 3,740
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
but is provided as an aid in determining amounts for the statement.
Cells with non-gray backgrounds are protected and cannot be edited.
Key Code:
[Key code here]
Name:
Section:
0%
Score:
Problem 14(13)-2A
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Net cash flow used for investing activities
Net cash flow used for financing activities
Cash at the beginning of the year
Cash at the end of the year
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 179,800 146,600
Accounts receivable (net) 242,000 224,600
Merchandise inventory 299,200 321,600
Prepaid expenses 9,600 13,400
Equipment 537,000 655,000
Accum. depr. – equipment (132,200) (170,800)
Accounts payable (237,600) (250,200)
Mortgage note payable (336,000) –
Common stock, $25 par (24,000) (74,000)
Paid-in capital in excess of par (320,000) (470,000)
Retained earnings (217,800) (396,200)
Totals – –
Operating activities:
Net income
Depreciation
Decrease in accounts receivable
Increase in merchandise inventory
Increase in prepaid expenses
Increase in accounts payable
Investing activities:
Purchase of equipment
Financing activities:
Payment of cash dividends
Sale of common stock
DEL RAY ENTERPRISES INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Transactions
Cash flows from investing activities:
Cash flows from financing activities:
DEL RAY ENTERPRISES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Increase (decrease) in cash
Payment of mortgage note payable
Net decrease in cash
Totals
Instructions
Increase (decrease) in cash
Cash received from sale of common stock
Less cash paid for dividends
Cash flows from financing activities:
Less cash paid to retire mortgage note payable
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 332,000$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 83,400
(162,800)$
Net cash flow used for investing activities (162,800)
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 179,800 (l) 33,200 146,600
Accounts receivable (net) 242,000 (k) 17,400 224,600
Accum. depr. – equipment (132,200) (g) 44,800 (f) 83,400 (170,800)
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
DEL RAY ENTERPRISES INC.
Cash flows from investing activities:
Score:
DEL RAY ENTERPRISES INC.
Cells with non-gray backgrounds are protected and cannot be edited.
Less cash paid for purchase of equipment
Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Problem 14(13)-2A
Name:
Section:
Solution
ON
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
Accounts payable (237,600) (e) 12,600 (250,200)
Mortgage note payable (336,000) (d) 336,000 –
Common stock, $25 par (24,000) (c) 50,000 (74,000)
Paid-in capital in excess of par (320,000) (c) 150,000 (470,000)
Retained earnings (217,800) (b) 153,600 (a) 332,000 (396,200)
Payment of cash dividends (b) 153,600
Sale of common stock (c) 200,000
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
but is provided as an aid in determining amounts for the statement.
Cells with non-gray backgrounds are protected and cannot be edited.
Score:
Key Code:
Problem 14(13)-2B
Name:
Section:
0%
[Key code here]
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Patent amortization
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Net cash flow used for investing activities
Net cash flow from financing activities
Cash at the beginning of the year
Cash at the end of the year
Schedule of Noncash Financing and Investing Activities:
Issuance of common stock to retire bonds
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 360,920 443,240
Accounts receivable (net) 592,200 665,280
Inventories 1,022,560 887,880
Prepaid expenses 25,200 31,640
Land 302,400 302,400
Buildings 1,134,000 1,713,600
Accum. depr. – buildings (414,540) (466,200)
Machinery and equipment 781,200 781,200
Accum. depr. – machinery and equipment (191,520) (214,200)
Patents 112,000 106,960
Accounts payable (927,080) (837,480)
Dividends payable (25,200) (32,760)
Salaries payable (87,080) (78,960)
Mortgage note payable – (224,000)
HARRIS INDUSTRIES INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Transactions
Increase (decrease) in cash
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from investing activities:
Cash flows from financing activities:
HARRIS INDUSTRIES, INC.
Bonds payable (390,000) –
Common stock, $5 par (50,400) (200,400)
Paid-in capital in excess of par (126,000) (366,000)
Retained earnings (2,118,660) (2,512,200)
Totals – –
Operating activities:
Net income
Depreciation – buildings
Depreciation – machinery and equipment
Amortization of patents
Increase in accounts receivable
Decrease in inventories
Increase in prepaid expenses
Decrease in accounts payable
Decrease in salaries payable
Investing activities:
Construction of building
Financing activities:
Declaration of cash dividends
Issuance of mortgage note payable
Increase in dividends payable
Schedule of noncash investing and financing activities:
Issuance of common stock to retire bonds
Net increase in cash
Totals
Instructions
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 524,580$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 74,340
Patent amortization 5,040
Changes in current operating assets and liabilities:
(73,080)
(579,600)$
Net cash flow used for investing activities
Less cash paid for dividends
Increase (decrease) in cash
Cash received from issuance of mortgage note
(579,600)
Issuance of common stock to retire bonds 390,000$
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 360,920 (p) 82,320 443,240
Accounts receivable (net) 592,200 (o) 73,080 665,280
Inventories 1,022,560 (n) 134,680 887,880
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
Score:
Cash flows from investing activities:
Problem 14(13)-2B
Name:
Section:
Increase in accounts receivable
Solution
HARRIS INDUSTRIES INC.
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ON
Cash paid for construction of building
HARRIS INDUSTRIES, INC.
Cash flows from financing activities:
Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Prepaid expenses 25,200 (m) 6,440 31,640
Land 302,400 302,400
Buildings 1,134,000 (l) 579,600 1,713,600
Accum. depr. – buildings (414,540) (k) 51,660 (466,200)
Bonds payable (390,000) (d) 390,000 –
Common stock, $5 par (50,400) (c) 150,000 (200,400)
Paid-in capital in excess of par (126,000) (c) 240,000 (366,000)
Retained earnings (2,118,660) (b) 131,040 (a) 524,580 (2,512,200)
Totals – 1,360,200 1,360,200 –
Operating activities:
Net income (a) 524,580
Depreciation – buildings (k) 51,660
Depreciation – machinery and equipment (j) 22,680
Amortization of patents (i) 5,040
Increase in accounts receivable (o) 73,080
Decrease in inventories (n) 134,680
Increase in prepaid expenses (m) 6,440
Net increase in cash (p) 82,320
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
but is provided as an aid in determining amounts for the statement.
0%
Score:
Problem 14(13)-3A
Key Code:
Name:
Section:
[Key code here]
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