Problem 16-1B
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.
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 provided by financing activities
Cash at the beginning of the year
Cash at the end of the year
Optional:
Cash flows from investing activities:
Increase in cash
Cash flows from operating activities:
Cash flows from financing activities:
Name:
Section:
For the Year Ended December 31, 2014
Score:
Key Code:
0%
[Key code here]
Cells with non-gray backgrounds are protected and cannot be edited.
MERRICK EQUIPMENT CO.
Statement of Cash Flows
Balance, Balance,
Dec. 31, 2013 Debit Credit Dec. 31, 2014
Cash 47,940 70,720
Accounts receivable (net) 188,190 207,230
Inventories 289,850 298,520
Investments 102,000 –
Land – 295,800
Equipment 358,020 438,600
Accum. depr. – equipment (84,320) (99,110)
Accounts payable (194,140) (205,700)
Accrued expenses payable (26,860) (30,600)
Dividends payable (20,400) (25,500)
Common stock, $1 par (102,000) (202,000)
Paid-in capital in excess of par (204,000) (354,000)
Retained earnings (354,280) (393,960)
Totals – –
Operating activities:
Net income
Depreciation
Loss on sale of investments
Increase in accounts receivable
Increase in inventories
Increase in accounts payable
Increase in accrued expenses payable
Investing activities:
Purchase of equipment
Purchase of land
Sale of investments
Financing activities:
Declaration of cash dividends
Sale of common stock
Increase in dividends payable
Net increase in cash
Totals
For the Year Ended December 31, 2014
MERRICK EQUIPMENT CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
Transactions
Problem 16-1B
Instructions
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 141,680$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 14,790
Loss on inventory write down and fixed assets
10,200
Name:
Section:
Loss on sale of investments
Solution
ON
Score:
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
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.
Cash received from sale of common stock
Cash flows from financing activities:
Less cash paid for purchase of land
Cash flows from investing activities:
Balance, Balance,
Dec. 31, 2013 Debit Credit Dec. 31, 2014
Cash 47,940 (m) 22,780 70,720
Accounts receivable (net) 188,190 (l) 19,040 207,230
For the Year Ended December 31, 2014
Spreadsheet (Work Sheet) for Statement of Cash Flows
Transactions