CHAPTER 15 Statement of Cash Flows
Prob. 15–3A (Concluded)
(Optional)
Whitman Co.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y2
Account Title
Balance,
Dec. 31, 20Y1
Transactions
Balance,
Dec. 31, 20Y2
Debit
Credit
Cash
964,800
(o) 46,800
918,000
Accounts receivable
761,940
(g) 66,960
828,900
Inventories
(h) 105,480
Prepaid expenses
(f) 5,760
479,700
(l) 163,800
315,900
Buildings
900,900
(k) 561,600
Accum. depr.—buildings
(382,320)
(e) 26,280
(408,600)
Equipment
454,680
(i) 104,400
(j) 46,800
512,280
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)
Common stock, $25 par
(117,000)
(n) 200,000
(317,000)
Paid-in capital in excess of
par—common stock
(558,000)
(n) 200,000
(758,000)
Retained earnings
(a) 35,320
(b) 32,400
Totals
0
0
Operating activities:
Net loss
(a) 35,320
(d) 29,340
(e) 26,280
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
Investing activities:
Purchase of equipment
(i) 104,400
Acquisition of building
(k) 561,600
Sale of land
(l) 151,200
Financing activities:
Payment of cash dividends
(b) (32,400)
Issuance of bonds payable
(m) 270,000
Issuance of common stock
(n) 400,000
Net decrease in cash
(o) 46,800
Totals
CHAPTER 15 Statement of Cash Flows
Appendix 2 Prob. 15–4A
Canace Products Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y6
$ 5,960,600
(2,456,800)
(520,000)
(200,000)
(544,000)
$ 240,000
(25,600)
Changes in current operating assets and liabilities:
Increase in accounts receivable …………………………………………………. (19,400)
Increase in inventories …………………………..………………………………….. (28,200)
Increase in accounts payable …………………………………………………….. 23,400
Decrease in accrued expenses payable ………………………………………. (7,400)
CHAPTER 15 Statement of Cash Flows
Appendix 2 Prob. 15–4A (Concluded)
Computations:
1. Sales ……………………………………………………………………………………………. $5,980,000
Increase in accounts receivable …………………………………………………….. (19,400)
Cash received from customers ……………………………………………………… $5,960,600
2. Cost of goods sold ……………………………………………………………………….. $2,452,000
3. Operating expenses other than depreciation ………………………………….. $3,100,000
CHAPTER 15 Statement of Cash Flows
Appendix 2 Prob. 15–5A
Livers Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y3
Cash flows from (used for) operating activities:
Cash received from customers1
$ 2,950,000
Cash payments for inventories2
Cash payments for operating expenses3
(955,000)
Cash payments for income taxes
(125,000)
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Cash received from sale of investments
$ 175,000
Cash paid for purchase of land
(500,000)
Cash paid for purchase of equipment
(200,000)
Net cash flow used for investing activities
(525,000)
Cash flows from (used for) financing activities:
Cash received from sale of common stock
$ 125,000
Cash paid for dividends4
Net cash flow from financing activities
Net increase in cash
Cash balance, January 1, 20Y3
Cash balance, December 31, 20Y3
Reconciliation of Net Income with Cash Flows from Operating Activities:
Net income ………………………………………………………………………………………… $500,000
Adjustments to reconcile net income to net cash flow
from operating activities:
CHAPTER 15 Statement of Cash Flows
Appendix 2 Prob. 15–5A (Concluded)
Computations:
1. Sales …………………………………………………………………………………….. $3,000,000
Increase in accounts receivable ……………………………………………… (50,000)
Cash received from customers …………………………..………………….. $2,950,000
2. Cost of goods sold …………………………………………………………………. $1,400,000
3. Operating expenses other than depreciation ……………………………. $950,000
Decrease in accrued expenses payable…………………………………… 5,000
Cash payments for operating expenses ………………………………….. $955,000
4. Cash dividends declared ………………………………………………………… $90,000
CHAPTER 15 Statement of Cash Flows
Prob. 15–1B
Merrick Equipment Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y9
Cash flows from (used for) operating activities:
Net income
$ 141,680
Adjustments to reconcile net income to
14,790
10,200
and liabilities:
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
Cash flows from (used for) investing activities:
Cash received from sale of investments
Cash paid for purchase of land
Cash paid for purchase of equipment
(80,580)
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash received from sale of common stock
$ 250,000
Cash paid for dividends*
(96,900)
Net cash flow from financing activities
153,100
Net increase in cash
Cash balance, January 1, 20Y9
Cash balance, December 31, 20Y9
* $102,000 + $20,400 – $25,500 = $96,900
CHAPTER 15 Statement of Cash Flows
Prob. 15–1B (Concluded)
(Optional)
Merrick Equipment Co.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y9
Balance,
Transactions
Balance,
Account Title
Dec. 31, 20Y8
Debit
Credit
Dec. 31, 20Y9
Cash
(m) 22,780
Accounts receivable (net)
(l) 19,040
Inventories
(k) 8,670
Investments
(j) 102,000
(i) 295,800
Equipment
(h) 80,580
Accum. depr.—equipment
(84,320)
(g) 14,790
(99,110)
Accounts payable
(194,140)
(f) 11,560
(205,700)
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)
Paid-in capital in excess
of par—common stock
(204,000)
(c) 150,000
(354,000)
Retained earnings
(354,280)
(b) 102,000
(a) 141,680
(393,960)
Totals
Operating activities:
Net income
(a) 141,680
Depreciation
(g) 14,790
Loss on sale of investments
(j) 10,200
Increase in accounts
receivable
(l) 19,040
Increase in inventories
(k) 8,670
Increase in accounts payable
(f) 11,560
Increase in accrued expenses
payable
(e) 3,740
Investing activities:
Purchase of equipment
(h) 80,580
Purchase of land
(i) 295,800
Sale of investments
(j) 91,800
Financing activities:
Declaration of cash dividends
(b) 102,000
Sale of common stock
Increase in dividends payable
(d) 5,100
Net increase in cash
(m) 22,780
Totals
CHAPTER 15 Statement of Cash Flows
Prob. 15–2B
Harris Industries Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y4
Cash flows from (used for) operating activities:
Net income
Adjustments to reconcile net income to
and liabilities:
Increase in accounts receivable
(73,080)
Decrease in inventories
134,680
Increase in prepaid expenses
(6,440)
Decrease in accounts payable
(89,600)
Decrease in salaries payable
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Cash paid for construction of building
Net cash flow used for investing activities
(579,600)
Cash flows from (used for) financing activities:
Cash received from issuance of mortgage note
$ 224,000
Cash paid for dividends**
(123,480)
Net cash flow from financing activities
100,520
Net increase in cash
Cash balance, January 1, 20Y4
360,920
Cash balance, December 31, 20Y4
Schedule of Noncash Financing and Investing Activities:
Issuance of common stock to retire bonds
* $51,660 + $22,680
** Cash paid for dividends = $131,040 + $25,200 – $32,760 = $123,480
CHAPTER 15 Statement of Cash Flows
Prob. 15–2B (Continued)
(Optional)
Harris Industries Inc.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y4
Account Title
Balance,
Dec. 31, 20Y3
Transactions
Balance,
Dec. 31, 20Y4
Debit
Credit
Cash
360,920
443,240
Accounts receivable (net)
592,200
665,280
Inventories
1,022,560
(n) 134,680
887,880
302,400
302,400
Buildings
1,134,000
(l) 579,600
1,713,600
Accum. depr.—buildings
(414,540)
(k) 51,660
(466,200)
Machinery and equipment
781,200
781,200
Accum. depr.—machinery
and equipment
(191,520)
(214,200)
Patents
112,000
106,960
Accounts payable
(927,080)
(837,480)
Dividends payable
(25,200)
Salaries payable
(87,080)
(f) 8,120
Mortgage note payable
(e) 224,000
(224,000)
Bonds payable
(390,000)
(d) 390,000
0
Common stock, $5 par
(50,400)
(c) 150,000
(200,400)
Paid-in capital in excess of
par—common stock
(126,000)
(c) 240,000
(366,000)
Retained earnings
(a) 524,580
(2,512,200)
Totals
1,360,200
0
Note to Instructors: The letters in the debit and credit columns are included for
reference purposes only.
CHAPTER 15 Statement of Cash Flows
Prob. 15–2B (Concluded)
Harris Industries Inc.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y4
Account Title
Balance,
Transactions
Balance,
Dec. 31, 20Y4
Dec. 31, 20Y3
Debit
Credit
Operating activities:
Net income
(a) 524,580
and equipment
Amortization of patents
Increase in accounts
receivable
(o) 73,080
Decrease in inventories
(n) 134,680
Increase in prepaid expenses
(m) 6,440
Decrease in accounts payable
(h) 89,600
Decrease in salaries payable
(f) 8,120
Investing activities:
Construction of building
(l) 579,600
Financial activities:
(e) 224,000
Increase in dividends payable
Schedule of noncash investing
and financing activities:
Issuance of common stock
to retire bonds
(c) 390,000
Net increase in cash
(p) 82,320
Totals
CHAPTER 15 Statement of Cash Flows
Prob. 15–3B
Coulson, Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from (used for) operating activities:
Net income
$ 326,600
Adjustments to reconcile net income to
net cash flow from operating activities:
(60,000)**
Increase in accounts receivable
(94,800)
Increase in inventories
(52,800)
Decrease in prepaid expenses
7,800
Decrease in accounts payable
(37,200)
Increase in income taxes payable
4,800
Net cash flow from operating activities
$ 162,800
Cash flows from (used for) investing activities:
Cash received from sale of land
Cash paid for acquisition of building
Cash paid for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash received from issuance of bonds payable
$ 330,000
Cash received from issuance of common stock
280,000
Cash paid for dividends
(79,200)
Net cash flow from financing activities
Net decrease in cash
Cash balance, January 1, 20Y2
Cash balance, December 31, 20Y2
$ 300,600
* $31,200 + $37,200
** $456,000 – $396,000
CHAPTER 15 Statement of Cash Flows
Prob. 15–3B (Concluded)
(Optional)
Coulson, Inc.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 20Y2
Balance,
Transactions
Balance,
Account Title
Dec. 31, 20Y1
Debit
Credit
Dec. 31, 20Y2
Cash
337,800
(p) 37,200
300,600
Accounts receivable (net)
609,600
(i) 94,800
704,400
Inventories
865,800
(h) 52,800
918,600
Prepaid expenses
(g) 7,800
(m) 396,000
990,000
Buildings
990,000
(l) 990,000
Accum. depr.—buildings
(366,000)
(f) 31,200
(397,200)
Equipment
529,800
(j) 196,800
(k) 66,000
660,600
Accum. depr.—equipment
(162,000)
(k) 66,000
(e) 37,200
(133,200)
Accounts payable
(631,200)
(d) 37,200
(594,000)
Income taxes payable
(21,600)
(c) 4,800
(26,400)
Bonds payable
(n) 330,000
(330,000)
Common stock, $20 par
(180,000)
(o) 140,000
(320,000)
Paid-in capital in excess of
par—common stock
(810,000)
(o) 140,000
(950,000)
(b) 79,200
(a) 326,600
Totals
1,516,800
Operating activities:
Net income
(a) 326,600
Depreciation—equipment
(e) 37,200
Depreciation—buildings
(f) 31,200
Gain on sale of land
(m) 60,000
Increase in accts. receivable
(i) 94,800
Increase in inventories
(h) 52,800
Decrease in prepaid expenses
(g) 7,800
Decrease in accounts payable
(d) 37,200
Increase in income taxes
payable
(c) 4,800
Investing activities:
(j) 196,800
(l) 990,000
Financing activities:
(b) 79,200
Net decrease in cash
(p) 37,200
Totals
1,510,800