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Exercise 16-12B (continued)
Notes
(1)
Sales ...............................................................................................................
$678,000
(2)
Cost of goods sold .........................................................................................
$411,000
(3)
Other operating expenses .............................................................................
$ 67,000
(4)
Income taxes expense ...................................................................................
$ 43,890
(5)
Cost of equipment sold (Given) ....................................................................
$ 48,600
Equipment
Accumulated Depreciation, Equipment
(7)
Retained Earnings
958
Exercise 16-13A (30 minutes)
SCORETECK CORPORATION
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2017
December
31, 2016
Analysis of Changes
December
31, 2017
Debit
Credit
Balance sheet—debit bal. accounts
Cash ..........................................................
$ 80,000
$ 60,000
Balance sheet—credit bal. accounts
Accum. depreciation—Plant assets ....
$ 100,000
(c)
70,000
$ 170,000
Statement of cash flows
Operating activities
Net income ...............................................
(a)
100,000
959
Exercise 16-14B (15 minutes)
Statement of Cash Flows
Noncash
Operating
Activities
Investing
Activities
Financing
Activities
Investing &
Financing
Activities
Not Reported
on Statement
or in Notes
a. Retired long-term notes
payable by issuing stock
X
960
Exercise 16-15B (15 minutes)
Case X:
Sales revenue ...........................................................
$515,000
Accounts receivable, Dec. 31, 2017 ........................
$ 27,200
Exercise 16-16B (20 minutes)
Cash flows from operating activities
Receipts from customers (see note a) ............................................
$1,797,500
Exercise 16-17B (20 minutes)
FERRON COMPANY
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Receipts from customers ...........................................
$ 495,000
Receipts of interest.....................................................
3,500
Note No. ___
Noncash investing and financing activities
(1) Issued common stock to retire $185,500 of bonds payable.
Exercise 16-18B (40 minutes)
1.
THOMAS CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Cash received from customers ........................................
$5,000,000
Cash received from dividends .........................................
208,400
2.
a. (i) Financing section reported the largest cash inflow of $4,036,000.
(ii) Investing section reported the largest cash outflow of $2,566,000.
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 16
963
PROBLEM SET A
Problem 16-1A (35 minutes)
LANSING COMPANY
Cash Flows from Operating Activities—Indirect Method
For Year Ended December 31, 2017
Cash flows from operating activities
Net income ...............................................................................
$ 6,000
964
Problem 16-2AB (35 minutes)
LANSING COMPANY
Cash Flows from Operating Activities—Direct Method
For Year Ended December 31, 2017
Cash flows from operating activities
Cash receipts from customers (1) .........................................................
$ 97,400
Supporting calculations
(1) Sales + Decrease in receivables = $97,200 + ($5,800 - $5,600) = $97,400
965
Problem 16-3A (50 minutes)
Part 1
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Net income ..........................................................................................
$114,975
Adjustments to reconcile net income to net
cash provided by operating activities:
Cash flows from investing activities
Cash received from sale of equipment .........................................
11,625
Problem 16-3A (Concluded)
Part 2
Forten Company's operations provide a positive net cash inflow of $40,900—a
good result. At the same time, the cash balance decreased by $23,700 (32%)
Problem 16-4AA (60 minutes)
FORTEN COMPANY
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2017
December
31, 2016
Analysis of Changes
December
31, 2017
Debit
Credit
Balance sheet—debits
Cash ..........................................................
$ 73,500
$ 49,800
Balance sheet--credits
Accum. depreciation—Equip. ..............
$ 46,000
(g)
30,125
(f)
20,750
$ 36,625
Statement of cash flows
Operating activities
Net income ..............................................
(a)
114,975
Noncash investing and
financing activities
Purchase of equip. financed
968
Problem 16-4AA (Concluded)
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Adjustments to reconcile net income to net
cash provided by operating activities:
Income statement items not affecting cash
Depreciation expense ................................................................
20,750
Cash flows from investing activities
Cash received from sale of equipment .........................................
11,625
969
Problem 16-5AB (40 minutes)
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Cash received from customers (Note 1) ....................
$567,315
Noncash investing and financing activities
Supporting calculations
(1) Sales - Increase in receivables = $582,500 - ($65,810 - $50,625) = $567,315
970
Problem 16-6A (35 minutes)
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Cash flows from investing activities
Cash paid for equipment ...........................................................
(36,000)
971
Problem 16-7AA (50 minutes)
GOLDEN CORPORATION
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2017
December
31, 2016
Analysis of Changes
December
31, 2017
Debit
Credit
Balance sheet--debits
Cash ..........................................................
$ 107,000
$ 164,000
Balance sheet--credits
Accum. depreciation—Equip. ..............
$ 104,000
(f)
$ 54,000
$ 158,000
Accounts payable ................................
71,000
(d)
16,000
87,000
Statement of cash flows
Operating activities
Net income ...............................................
(a)
136,000
Investing activities
Payment for equipment .........................
(g)
36,000
972
Problem 16-7AA (Concluded)
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Net income ...................................................................................
$136,000
Adjustments to reconcile net income to net
cash provided by operating activities
Income statement items not affecting cash
Depreciation expense ..........................................................
54,000
973
Problem 16-8AB (35 minutes)
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Cash received from customers (Note 1) .................
$1,780,000
Supporting calculations
(2) Cost of Increase in Increase in
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 16
974
PROBLEM SET B
Problem 16-1B (35 minutes)
SALT LAKE COMPANY
Cash Flows from Operating Activities—Indirect Method
For Year Ended December 31, 2017
Cash flows from operating activities
Net income ...............................................................................
$ 20,000
Adjustments to reconcile net income to net cash
provided by operating activities
Income statement items not affecting cash
975
Problem 16-2BB (35 minutes)
SALT LAKE COMPANY
Cash Flows from Operating Activities—Direct Method
For Year Ended December 31, 2017
Cash flows from operating activities
Cash receipts from customers (1) ........................................................
$ 155,400
Supporting calculations
976
Problem 16-3B (40 minutes)
Part 1
GAZELLE CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Net income ..........................................................................................
$158,100
Adjustments to reconcile net income to net
cash provided by operating activities
Income statement item not affecting cash
