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 15-2B
Name:
Section:
0%
[Key code here]
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Score:
Key Code:
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Depreciation
Patent amortization
Net cash flow from operating activities
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Net cash flow from financing activities
Cash balance, January 1, 20Y4
Cash balance, December 31, 20Y4
Schedule of Noncash Financing and Investing Activities:
Issuance of common stock to retire bonds
Optional:
Balance, Balance,
Dec. 31, 20Y3 Debit Credit Dec. 31, 20Y4
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
Cash flows from (used for) operating activities:
Transactions
Net increase (decrease) in cash
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y4
Cash flows from (used for) investing activities:
Harris Industries Inc.
Accounts payable (927,080) (837,480)
Dividends payable (25,200) (32,760)
Salaries payable (87,080) (78,960)
Mortgage note payable – (224,000)
Bonds payable (390,000) –
Common stock, $5 par (50,400) (200,400)
Paid-in capital in excess of par (126,000) (366,000)
Retained earnings (2,118,660) (2,512,200)
Totals – –
Operating activities:
Net income
Depreciation – buildings
Depreciation – machinery and equipment
Amortization of patents
Increase in accounts receivable
Decrease in inventories
Increase in prepaid expenses
Decrease in accounts payable
Decrease in salaries payable
Instructions
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 524,580$
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:
Net cash flow from operating activities 561,400$
Cash flows from (used for) investing activities:
Cash paid for construction of building
Net cash flow used for investing activities (579,600)
Cash received from issuance of mortgage note
Cash paid for dividends
Cash flows from (used for) financing activities:
Net cash flow from financing activities 100,520
82,320$
Cash balance, January 1, 20Y4 360,920
Cash balance, December 31, 20Y4 443,240$
Schedule of Noncash Financing and Investing Activities:
Optional:
Problem 15-2B
Name:
Section:
Solution
Harris Industries Inc.
Cells with non-gray backgrounds are protected and cannot be edited.
ON
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
Score:
Statement of Cash Flows
For the Year Ended December 31, 20Y4
Cash flows from (used for) operating activities:
Net increase (decrease) in cash
Spreadsheet (Work Sheet) for Statement of Cash Flows
Harris Industries Inc.
Balance, Balance,
Dec. 31, 20Y3 Debit Credit Dec. 31, 20Y4
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
Issuance of mortgage note payable (e) 224,000
Increase in dividends payable (g) 7,560
Schedule of noncash investing and financing activities:
Transactions
For the Year Ended December 31, 20Y4