Subtotal 2,382,600$
113,400
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
Increase 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%
[Key code here]
Score:
Key Code:
Problem 14(13)-5A
Name:
Section:
CROMME 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
4. Cash dividends declared
Cash paid for dividends
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers 5,353,679$
Deduct: (3,311,310)$
(1,765,802)
Net cash flow from financing activities 96,300
Increase in cash 39,840$
Cash at the beginning of the year
585,920
Cash at the end of the year 625,760$
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
199,540$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense 18,400
Gain on sale of investments (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$
Computations:
1. Sales 5,372,559$
18,880
Problem 14(13)-5A
Name:
Solution
Section:
For the Year Ended December 31, 2016
CROMME INC.
Statement of Cash Flows
Cash payments for merchandise
ON
Score:
Increase in accounts receivable
Increase in inventories
Cash payments for operating expenses
Increase in accounts payable
Decrease in accrued expenses payable
Deduct increase in accounts receivable
Cash flows from investing activities:
Cash flows from financing activities:
Cash paid for dividends
Cash payments for income taxes
Cash paid for land
Cash paid for equipment
Subtotal 3,330,830$
19,520
Cash payments for merchandise 3,311,310$
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
Increase 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
0%
[Key code here]
Score:
Key Code:
Problem 14(13)-5B
Name:
Section:
MERRICK EQUIPMENT CO.
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 2,004,858$
Deduct: (1,242,586)$
Net cash flow used for investing activities (284,580)
Cash flows from financing activities:
Cash at the beginning of the year
Cash received from sale of common stock 250,000$
Less: (96,900)
Net cash flow from financing activities 153,100
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
141,680$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense 14,790
Loss on sale of investments 10,200
Changes in current operating assets and liabilities:
Computations:
1. Sales 2,023,898$
Cash payments for merchandise
Cash paid for dividends
ON
For the Year Ended December 31, 2016
MERRICK EQUIPMENT CO.
Statement of Cash Flows
Problem 14(13)-5B
Name:
Solution
Section:
Score:
Cash flows from investing activities:
Cash payments for operating expenses
Cash paid for purchase of land
Cash paid for purchase of equipment
Cash payments for income tax
Subtotal 1,254,146$
11,560
Cash payments for merchandise 1,242,586$
Deduct increase in accounts payable
Deduct increase in accrued expenses payable
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Exercise 14(13)-16
Name:
Section:
Score:
Key Code:
0%
[Key code here]
Cells with non-gray backgrounds are protected and cannot be edited.
a.
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Stock-based compensation expense (noncash)
Losses on inventory write down and fixed assets
Changes in current operating assets and liabilities:
Increase in accounts receivable
Increase in inventory
Decrease in prepaid expenses
Decrease in accounts payable and other current liabilities
Net cash flow from operating activities
b.
Cash flows from operating activities:
[Key essay answer here]
NATIONAL BEVERAGE CO.
Cash Flows from Operating Activities
(in thousands)
Instructions
Answers are entered in the cells with gray backgrounds.
a.
Net income 43,993$
Adjustments to reconcile net income to net cash
flow from operating activities:
Increase in accounts receivable
Decrease in prepaid expenses
(5,679)
b.
Cash flows from operating activities:
Exercise 14(13)-16
Name:
Section:
Solution
Cells with non-gray backgrounds are protected and cannot be edited.
ON
National Beverage is doing well financially. The company has positive earnings and positive net cash
flow from operating activities. The company continues to grow, and the trend in recent years has been
positive. The increase in accounts receivable is a positive sign, indicating an increase in sales. The
increase in inventory supports this trend. In addition, the company is using its cash to decrease its
accounts payable balance, which indicates that the company is generating enough cash from
operations to pay for its inventory in cash. This is a healthy trend.
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Score:
NATIONAL BEVERAGE CO.
Cash Flows from Operating Activities
(in thousands)
Changes in current operating assets and liabilities:
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Score:
Key Code:
0%
[Key code here]
Cells with non-gray backgrounds are protected and cannot be edited.
Exercise 14-(13)17
Name:
Section:
a.
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 from investing activities
Net cash flow from financing activities
Cash at the beginning of the year
Cash at the end of the year
b.
For the Year Ended December 31, 2016
Cash flows from operating activities:
PELICAN JOE INDUSTRIES INC.
Statement of Cash Flows
Cash flows from investing activities:
[Key essay answer here]
Cash flows from financing activities:
Increase in cash
Instructions
Answers are entered in the cells with gray backgrounds.
a.
Net income 325$
Adjustments to reconcile net income to net cash
flow from operating activities:
Cash received from sale of common stock
Less cash paid for dividends
Cash flows from financing activities:
Increase in cash
125$
(50)
Net cash flow from investing activities 75
b.
Name:
Section:
Pelican Joe Industries Inc.’s net income was more than the cash flows from
operations because of:
$30 of depreciation expense, which has no effect on cash.
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Score:
PELICAN JOE INDUSTRIES INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Less cash paid for purchase of equipment
Cash received from sale of land
Exercise 14-(13)17
Cells with non-gray backgrounds are protected and cannot be edited.
ON
Solution
Cash flows from investing activities:
Gain on sale of land
Pelican Joe Industries Inc.’s net income was more than the cash flows from
depending on their effect on cash flows:
Increase in accounts receivable, $80 deducted
Increase in inventories, $65 deducted