CHAPTER 14 Statement of Cash Flows
Prob. 14–1A (Concluded)
(Optional)
Balance, Balance,
Account Title Dec. 31, 2015 Dec. 31, 2016
Cash 585,920 (m) 39,840 625,760
Accounts receivable (net) 208,960 (l) 18,880 227,840
Accrued expenses payable (52,640) (e) 10,400 (42,240)
Dividends payable (19,200) (d) 4,800 (24,000)
Common stock, $2 par (100,000) (c) 50,000 (150,000)
Paid-in capital in excess
Increase in accounts payable (f) 19,520
Decrease in accrued
expenses payable (e) 10,400
Investing activities:
Purchase of equipment (h) 152,000
Debit Credit
CROMME INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Transactions
14-21
CHAPTER 14 Statement of Cash Flows
Prob. 14–2A
Cash flows from operating activities:
Net income $ 332,000
Adjustments to reconcile net income to
net cash flow from operating activities:
Net cash flow from operating activities $ 419,200
Cash flows from investing activities:
Cash paid for equipment $(162,800)
Cash at the beginning of the year 179,800
Cash at the end of the year $ 146,600
Note to Instructors: The disposal of fully depreciated equipment is not included in the
cash flow statement because there is no associated cash flow. This transaction strictly
involves the removal of $44,800 from the equipment and accumulated depreciation—
For the Year Ended December 31, 2016
DEL RAY 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, 2015 Dec. 31, 2016
Cash 179,800 (l) 33,200 146,600
Accounts receivable (net) 242,000 (k) 17,400 224,600
Mortgage note payable (336,000) (d) 336,000 0
Common stock, $25 par (24,000) (c) 50,000 (74,000)
Paid-in capital in excess
of par—common stock (320,000) (c) 150,000 (470,000)
Investing activities:
Purchase of equipment (h) 162,800
Financing activities:
Payment of cash dividends (b) 153,600
Sale of common stock (c) 200,000
Debit Credit
DEL RAY ENTERPRISES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Transactions
14-23
CHAPTER 14 Statement of Cash Flows
Prob. 14–3A
Cash flows from operating activities:
Net loss $ (35,320)
Adjustments to reconcile net loss to
net cash flow from operating activities:
Depreciation* 55,620
Decrease in prepaid expenses 5,760
Decrease in accounts payable (35,820)
Net cash flow used for operating activities $(169,600)
Cash flows from investing activities:
Cash received from issuance of
common stock 400,000 $670,000
Less cash paid for dividends 32,400
Net cash flow from financing activities 637,600
Decrease in cash $ (46,800)
For the Year Ended December 31, 2016
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, 2015 Dec. 31, 2016
Cash 964,800 (o) 46,800 918,000
Accum. depr.—equipment (158,760) (j) 46,800 (d) 29,340 (141,300)
Accounts payable (958,320) (c) 35,820 (922,500)
Bonds payable 0 (m) 270,000 (270,000)
Loss on sale of land (l) 12,600
Increase in accts. receivable (g) 66,960
Increase in inventories (h) 105,480
Decrease in prepaid expenses (f) 5,760
Decrease in accounts payable (c) 35,820
Debit Credit
WHITMAN CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Transactions
14-25
CHAPTER 14 Statement of Cash Flows
Prob. 14–4A
Cash flows from operating activities:
Cash received from customers1$5,960,600
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:
Depreciation…………………………………………………………………
…
44,000
Loss on sale of investments………………………………………………
…
64,000
Changes in current operating assets and liabilities:
Increase in accounts receivable……………………………………… (19,400)
Increase in inventories…………………………………………………
…
(28,200)
For the Year Ended December 31, 2016
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 received from customers1$5,353,679
Deduct: Cash payments for merchandise2$3,311,310
Cash paid for purchase of equipment 152,000 480,000
Net cash flow used for investing activities (200,000)
Cash flows from financing activities:
Cash received from sale of common stock $ 187,500
Gain on sale of investments……………………………………………………… (40,000)
Changes in current operating assets and liabilities:
Increase in accounts receivable……………………………………………
…
(18,880)
Increase in inventories………………………………………………………… (24,640)
Increase in accounts payable………………………………………………… 19,520
For the Year Ended December 31, 2016
CROMME INC.
Statement of Cash Flows
14-28
CHAPTER 14 Statement of Cash Flows
Prob. 14–5A (Concluded)
Computations:
1. Sales……………………………………………………………………………… $5,372,559
2. Cost of merchandise sold……………………………………………………
…
$3,306,190
3. Operating expenses other than depreciation……………………………
…
$1,755,402
4. Cash dividends declared……………………………………………………
…
$ 96,000
…
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
Increase in accounts receivable (19,040)
Increase in inventories (8,670)
Increase in accounts payable 11,560
Increase in accrued expenses
payable 3,740
Net cash flow from operating activities $ 154,260
For the Year Ended December 31, 2016
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, 2015 Dec. 31, 2016
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, 2016
Transactions
14-31
CHAPTER 14 Statement of Cash Flows
Prob. 14–2B
Cash flows from operating activities:
Net income $ 524,580
Increase in prepaid expenses (6,440)
Decrease in accounts payable (89,600)
Decrease in salaries payable (8,120)
Net cash flow from operating activities $ 561,400
For the Year Ended December 31, 2016
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, 2015 Dec. 31, 2016
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
Accounts payable (927,080) (h) 89,600 (837,480)
Dividends payable (25,200) (g) 7,560 (32,760)
Salaries payable (87,080) (f) 8,120 (78,960)
Mortgage note payable 0 (e) 224,000 (224,000)
Debit Credit
HARRIS INDUSTRIES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Transactions