Net income (loss)
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Loss on sale of land
Changes in current operating assets and liabilities:
Net cash flow used for 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 964,800 918,000
Accounts receivable (net) 761,940 828,900
Inventories 1,162,980 1,268,460
Prepaid expenses 35,100 29,340
Land 479,700 315,900
Buildings 900,900 1,462,500
Accum. depr. – buildings (382,320) (408,600)
Equipment 454,680 512,280
Accum. depr. – equipment (158,760) (141,300)
Accounts payable (958,320) (922,500)
Bonds payable – (270,000)
Common stock, $25 par (117,000) (317,000)
Paid-in capital in excess of par (558,000) (758,000)
Retained earnings (2,585,700) (2,517,980)
For the Year Ended December 31, 2016
Cash flows from investing activities:
Transactions
Increase (decrease) in cash
Spreadsheet (Work Sheet) for Statement of Cash Flows
WHITMAN CO.
Cash flows from financing activities:
Cash flows from operating activities:
For the Year Ended December 31, 2016
WHITMAN CO.
Statement of Cash Flows
Totals – –
Operating activities:
Net loss
Depreciation – equipment
Depreciation – buildings
Loss on sale of land
Increase in accounts receivable
Increase in inventories
Decrease in prepaid expenses
Decrease in accounts payable
Investing activities:
Purchase of equipment
Acquisition of building
Sale of land
Financing activiities:
Payment of cash dividends
Issuance of bonds payable
Issuance of common stock
Net decrease in cash
Totals
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income (loss) (35,320)$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 55,620
Loss on sale of land 12,600
151,200$
(561,600)
(104,400)
Net cash flow used for investing activities
Less cash paid for dividends
Cash received from issuance of bonds payable
Cash received from issuance of common stock
Cash flows from financing activities:
Increase (decrease) in cash
(514,800)
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 964,800 (o) 46,800 918,000
Accounts receivable (net) 761,940 (g) 66,960 828,900
Inventories 1,162,980 (j) 105,480 1,268,460
Prepaid expenses 35,100 (f) 5,760 29,340
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Score:
WHITMAN CO.
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Cash flows from investing activities:
Less cash paid for acquisition of building
Problem 14(13)-3A
Name:
Section:
Solution
ON
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
WHITMAN CO.
Less cash paid for purchase of equipment
Cash received from land sold
Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Instructions
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but is provided as an aid in determining amounts for the statement.
0%
[Key code here]
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Problem 14(13)-3B
Score:
Key Code:
Name:
Section:
Net income (loss)
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Gain on sale of land
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 337,800 300,600
Accounts receivable (net) 609,600 704,400
Inventories 865,800 918,600
Prepaid expenses 26,400 18,600
Land 1,386,000 990,000
Buildings 990,000 1,980,000
Accum. depr. – buildings (366,000) (397,200)
Equipment 529,800 660,600
Accum. depr. – equipment (162,000) (133,200)
Accounts payable (631,200) (594,000)
Income tax payable (21,600) (26,400)
Bonds payable – (330,000)
Common stock, $20 par (180,000) (320,000)
Paid-in capital in excess of par (810,000) (950,000)
Cash flows from operating activities:
COULSON INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from investing activities:
COULSON INC.
Cash flows from financing activities:
For the Year Ended December 31, 2016
Transactions
Increase (decrease) in cash
Spreadsheet (Work Sheet) for Statement of Cash Flows
Retained earnings (2,574,600) (2,822,000)
Totals – –
Operating activities:
Net income
Depreciation – equipment
Depreciation – buildings
Gain on sale of land
Increase in accounts receivable
Increase in inventories
Decrease in prepaid expenses
Decrease in accounts payable
Increase in income taxes payable
Investing activities:
Purchase of equipment
Acquisition of building
Sale of land
Financing activiities:
Payment of cash dividends
Issuance of bonds payable
Issuance of common stock
Net decrease in cash
Totals
Cash flows from investing activities:
Less cash paid for acquisition of building
Less cash paid for purchase of equipment
Cash received from land sold
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income (loss) 326,600$
Adjustments to reconcile net income to net cash
(94,800)
(52,800)
7,800
(37,200)
4,800
Less cash paid for dividends
Increase (decrease) in cash
Cash received from issuance of common stock
330,000$
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 337,800 (p) 37,200 300,600
Accounts receivable (net) 609,600 (i) 94,800 704,400
Inventories 865,800 (h) 52,800 918,600
Cash flows from financing activities:
Decrease in accounts payable
Problem 14(13)-3B
Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Decrease in prepaid expenses
Increase in inventories
Increase in income taxes payable
COULSON INC.
ON
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Score:
COULSON INC.
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Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Cash received from issuance of bonds payable
Name:
Section:
Increase in accounts receivable
Solution
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers
Deduct:
Net cash flow from operating activities
Cash flows from investing activities:
Cash received from sale of investments
Less:
Net cash flow used for investing activities
Cash flows from financing activities:
Cash received from sale of common stock
Less:
Net cash flow from financing activities
Decrease in cash
Cash at the beginning of the year
Cash at the end of the year
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense
Loss on sale of investments
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Computations:
1. Sales
Cash received from customers
2. Cost of merchandise sold
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CANACE PRODUCTS INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
0%
[Key code here]
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Score:
Key Code:
Instructions
Problem 14(13)-4A
Name:
Section:
Subtotal
Cash payments for merchandise
3. Operating expenses other than depreciation
Cash payments for operating expenses
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers 5,960,600$
Deduct: (2,456,800)$
Net cash flow used for investing activities (544,000)
Cash flows from financing activities:
Cash received from sale of common stock 240,000$
Less: (25,600)
Net cash flow from financing activities 214,400
Decrease in cash (36,000)$
Cash at the beginning of the year
Net income
Increase in accounts payable
Decrease in accrued expenses payable
Increase in inventories
Computations:
1. Sales 5,980,000$
19,400
Cash received from customers 5,960,600$
2. Cost of merchandise sold 2,452,000$
28,200
Deduct increase in accounts receivable
Add increase in inventories
Cash paid for dividends
For the Year Ended December 31, 2016
CANACE PRODUCTS INC.
Statement of Cash Flows
Cash payments for merchandise
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Score:
Instructions
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Problem 14(13)-4A
Name:
Solution
Section:
ON
Cash flows from investing activities:
Cash payments for operating expenses
Cash payments for income taxes
Cash paid for purchase of land
Cash paid for purchase of equipment
Subtotal 2,480,200$
23,400
Deduct increase in accounts payable
Add decrease in accrued expenses payable
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers
Deduct:
Net cash flow from operating activities
Cash flows from investing activities:
Cash received from sale of investments
Less:
Net cash flow used for investing activities
Cash flows from financing activities:
Cash received from sale of common stock
Less:
Net cash flow from financing activities
Decrease in cash
Cash at the beginning of the year
Cash at the end of the year
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense
Gain on sale of investments
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Computations:
1. Sales
Cash received from customers
2. Cost of merchandise sold
0%
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[Key code here]
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Score:
Key Code:
Instructions
Problem 14(13)-4B
Name:
Section:
MARTINEZ INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
Subtotal
Cash payments for merchandise
3. Operating expenses other than depreciation
Cash payments for operating expenses
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers 4,433,760$
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
558,960$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense 113,100
Gain on sale of investments (156,000)
Computations:
1. Sales 4,512,000$
78,240
Deduct increase in accounts receivable
Instructions
Answers are entered in the cells with gray backgrounds.
ON
For the Year Ended December 31, 2016
MARTINEZ INC.
Statement of Cash Flows
Problem 14(13)-4B
Name:
Solution
Section:
Key Code:
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Score:
Cash flows from investing activities:
Cash flows from financing activities:
Cash at the beginning of the year