CHAPTER 14 Statement of Cash Flows
Prob. 14–1A (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 439,440 (m) 29,880 469,320
Accounts receivable (net) 156,720 (l) 14,160 170,880
Inventories 462,840 (k) 18,480 481,320
Investments 180,000 (j) 180,000 0
Operating activities:
Net income (a) 190,280
Debit Credit
CHARLES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
14-21
CHAPTER 14 Statement of Cash Flows
Prob. 14–2A
Cash flows from operating activities:
Net income $ 198,000
Cash flows from investing activities:
Cash paid for equipment $(244,200)
For the Year Ended December 31, 2014
LANKAU ENTERPRISES INC.
Statement of Cash Flows
14-22
CHAPTER 14 Statement of Cash Flows
Prob. 14–2A (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 269,700 (l) 49,800 219,900
Paid-in capital in excess
Increase in merchandise
inventory (j) 33,600
Increase in prepaid expenses (i) 5,700
Increase in accounts payable (e) 18,900
Investing activities:
Debit Credit
LANKAU ENTERPRISES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
14-23
CHAPTER 14 Statement of Cash Flows
Prob. 14–3A
Cash flows from operating activities:
Cash flows from investing activities:
Cash received from land sold $151,200
Less: Cash paid for acquisition
Cash flows from financing activities:
Cash received from issuance of
For the Year Ended December 31, 2014
WHITMAN CO.
Statement of Cash Flows
14-24
CHAPTER 14 Statement of Cash Flows
Prob. 14–3A (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 964,800 (o) 46,800 918,000
Accounts payable (958,320) (c) 35,820 (922,500)
Bonds payable 0 (m) 270,000 (270,000)
Operating activities:
Net loss (a) 35,320
Depreciation—equipment (d) 29,340
Depreciation—buildings (e) 26,280
Loss on sale of land (l) 12,600
Increase in accts. receivable (g) 66,960
Debit Credit
WHITMAN CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
14-25
CHAPTER 14 Statement of Cash Flows
Prob. 14–4A
Cash flows from operating activities:
Cash flows from investing activities:
Cash received from sale of investments $ 176,000
Less: Cash paid for purchase of land $ (520,000)
Cash paid for purchase of
equipment (200,000) (720,000)
Net cash flow used for investing activities (544,000)
Cash flows from financing activities:
Reconciliation of Net Income with Cash Flows from Operating Activities:
Adjustments to reconcile net income to net cash flow
from operating activities:
For the Year Ended December 31, 2014
CANACE PRODUCTS INC.
Statement of Cash Flows
14-26
CHAPTER 14 Statement of Cash Flows
Prob. 14–4A (Concluded)
Computations:
1. Sales…………………………………………………………………………………
…
$5,980,000
2. Cost of merchandise sold…………………………………………………………
…
$2,452,000
3. Operating expenses other than depreciation…………………………………
…
$3,100,000
…
…
14-27
…
CHAPTER 14 Statement of Cash Flows
Prob. 14–5A
Cash flows from operating activities:
Cash flows from financing activities:
Reconciliation of Net Income with Cash Flows from Operating Activities:
Net income……………………………………………………………………………
$190,280
Adjustments to reconcile net income to net cash flow
from operating activities:
For the Year Ended December 31, 2014
CHARLES INC.
Statement of Cash Flows
14-28
CHAPTER 14 Statement of Cash Flows
Prob. 14–5A (Concluded)
Computations:
1. Sales…………………………………………………………………………………
…
$5,261,701
2. Cost of merchandise sold………………………………………………………
…
$3,237,970
Add increase in inventories……………………………………………………… 18,480
3. Operating expenses other than depreciation………………………………… $1,722,798
…
…
4. Cash dividends declared…………………………………………………………
…
$ 72,000
14-29
…
CHAPTER 14 Statement of Cash Flows
Prob. 14–1B
Cash flows from operating activities:
Net income $141,680
Adjustments to reconcile net income to
net cash flow from operating activities:
Cash flows from investing activities:
Cash received from sale of investments $ 91,800
Less: Cash paid for purchase of land $295,800
For the Year Ended December 31, 2014
MERRICK EQUIPMENT CO.
Statement of Cash Flows
14-30
CHAPTER 14 Statement of Cash Flows
Prob. 14–1B (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 47,940 (m) 22,780 70,720
Accrued expenses payable (26,860) (e) 3,740 (30,600)
Dividends payable (20,400) (d) 5,100 (25,500)
Common stock, $1 par (102,000) (c) 100,000 (202,000)
Increase in inventories (k) 8,670
Increase in accounts payable (f) 11,560
Increase in accrued expenses
payable (e) 3,740
Investing activities:
Debit Credit
MERRICK EQUIPMENT CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
14-31
CHAPTER 14 Statement of Cash Flows
Prob. 14–2B
Cash flows from operating activities:
Net income $ 524,580
Adjustments to reconcile net income to
net cash flow from operating activities:
Cash flows from investing activities:
Cash paid for construction of building $(579,600)
Net cash flow used for investing activities (579,600)
Cash flows from financing activities:
For the Year Ended December 31, 2014
HARRIS INDUSTRIES INC.
Statement of Cash Flows
14-32
CHAPTER 14 Statement of Cash Flows
Prob. 14–2B (Continued)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 360,920 (p) 82,320 443,240
Accum. depr.—machinery and
equipment (191,520) (j) 22,680 (214,200)
Patents 112,000 (i) 5,040 106,960
Debit Credit
HARRIS INDUSTRIES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
14-33