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 15-1B
Score:
Key Code:
0%
[Key code here]
Cells with non-gray backgrounds are protected and cannot be edited.
Name:
Section:
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Loss on inventory write down and fixed assets
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Net cash flow used for investing activities
Net cash flow from financing activities
Cash balance, January 1, 20Y9
Cash balance, December 31, 20Y9
Optional:
Balance, Balance,
Dec. 31, 20Y8 Debit Credit Dec. 31, 20Y9
Cash 47,940 70,720
Accounts receivable (net) 188,190 207,230
Inventories 289,850 298,520
Merrick Equipment Co.
Transactions
For the Year Ended December 31, 20Y9
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y9
Merrick Equipment Co.
Statement of Cash Flows
Dividends payable (20,400) (25,500)
Common stock, $1 par (102,000) (202,000)
Paid-in capital in excess of par (204,000) (354,000)
Retained earnings (354,280) (393,960)
Totals – –
Operating activities:
Net income
Depreciation
Loss on sale of investments
Increase in accounts receivable
Increase in inventories
Increase in accounts payable
Increase in accrued expenses payable
Investing activities:
Purchase of equipment
Purchase of land
Sale of investments
Financing activities:
Declaration of cash dividends
Sale of common stock
Increase in dividends payable
Net increase in cash
Totals
Instructions
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 141,680$
Adjustments to reconcile net income to net cash
flow from operating activities:
Loss on inventory write down and fixed assets
Loss on sale of investments
Changes in current operating assets and liabilities:
Net cash flow from operating activities 154,260$
Cash paid for purchase of land
Cash paid for purchase of equipment
Cash flows from (used for) investing activities:
Cash received from sale of investments
Net cash flow used for investing activities (284,580)
Cash received from sale of common stock
Cash paid for dividends
Cash flows from (used for) financing activities:
Net cash flow from financing activities 153,100
22,780$
Cash balance, January 1, 20Y9 47,940
Cash balance, December 31, 20Y9 70,720$
Optional:
Merrick Equipment Co.
Score:
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
Merrick Equipment Co.
Cells with non-gray backgrounds are protected and cannot be edited.
Solution
ON
Problem 15-1B
Statement of Cash Flows
For the Year Ended December 31, 20Y9
Cash flows from (used for) operating activities:
Net increase (decrease) in cash
Name:
Section:
Balance, Balance,
Dec. 31, 20Y8 Debit Credit Dec. 31, 20Y9
Cash 47,940 (m) 22,780 70,720
Investments 102,000 (j) 102,000 –
Land – (i) 295,800 295,800
Equipment 358,020 (h) 80,580 438,600
Accum. depr. – equipment (84,320) (g) 14,790 (99,110)
Totals – 528,870 528,870 –
Investing activities:
Purchase of equipment (h) 80,580
Purchase of land (i) 295,800
Sale of investments (j) 91,800
Financing activities:
For the Year Ended December 31, 20Y9
Spreadsheet (Work Sheet) for Statement of Cash Flows
Transactions