CHAPTER 16 Statement of Cash Flows
Prob. 16–1A (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 439,440 (m) 29,880 469,320
Accrued expenses payable (39,480) (e) 7,800 (31,680)
Dividends payable (14,400) (d) 3,600 (18,000)
Common stock, $2 par (75,000) (c) 20,000 (95,000)
Paid-in capital in excess
Increase in accounts payable (f) 14,640
Decrease in accrued expenses
payable (e) 7,800
Investing activities:
Purchase of equipment (h) 114,000
Debit Credit
CHARLES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
16-21
CHAPTER 16 Statement of Cash Flows
Prob. 16–2A
Cash flows from operating activities:
Net income $ 198,000
Adjustments to reconcile net income to
net cash flow from operating activities:
Cash flows from investing activities:
Cash paid for equipment $(244,200)
Net cash flow used for investing
For the Year Ended December 31, 2014
LANKAU ENTERPRISES INC.
Statement of Cash Flows
16-22
CHAPTER 16 Statement of Cash Flows
Prob. 16–2A (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 269,700 (l) 49,800 219,900
Paid-in capital in excess
of par—common stock (480,000) (c) 225,000 (705,000)
Investing activities:
Purchase of equipment (h) 244,200
Financing activities:
Payment of cash dividends (b) 230,400
Sale of common stock (c) 600,000
Debit Credit
LANKAU ENTERPRISES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
16-23
CHAPTER 16 Statement of Cash Flows
Prob. 16–3A
Cash flows from operating activities:
Cash flows from investing activities:
Cash received from issuance of
common stock 400,000 $670,000
Less cash paid for dividends 32,400
Net cash flow from financing activities 637,600
Decrease in cash $ (46,800)
For the Year Ended December 31, 2014
WHITMAN CO.
Statement of Cash Flows
16-24
CHAPTER 16 Statement of Cash Flows
Prob. 16–3A (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Cash 964,800 (o) 46,800 918,000
Accounts payable (958,320) (c) 35,820 (922,500)
Bonds payable 0 (m) 270,000 (270,000)
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
Debit Credit
WHITMAN CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
16-25
CHAPTER 16 Statement of Cash Flows
Prob. 16–4A
Cash flows from operating activities:
Cash received from customers1$5,960,600
Cash paid for purchase of
equipment (200,000) (720,000)
Net cash flow used for investing activities (544,000)
Cash flows from financing activities:
Reconciliation of Net Income with Cash Flows from Operating Activities:
Adjustments to reconcile net income to net cash flow
from operating activities:
Changes in current operating assets and liabilities:
Increase in accounts receivable………………………………………………
…
(19,400)
Increase in inventories…………………………………………………………
…
(28,200)
For the Year Ended December 31, 2014
CANACE PRODUCTS INC.
Statement of Cash Flows
16-26
CHAPTER 16 Statement of Cash Flows
Prob. 16–4A (Concluded)
Computations:
1. Sales…………………………………………………………………………………
…
$5,980,000
2. Cost of merchandise sold…………………………………………………………
…
$2,452,000
3. Operating expenses other than depreciation…………………………………
…
$3,100,000
16-27
…
CHAPTER 16 Statement of Cash Flows
Prob. 16–5A
Cash flows from operating activities:
Cash flows from investing activities:
Cash received from sale of investments $ 210,000
Less: Cash paid for purchase of land $ 246,000
Cash paid for purchase of equipment 114,000 360,000
Net cash flow used for investing activities (150,000)
Cash flows from financing activities:
Reconciliation of Net Income with Cash Flows from Operating Activities:
Net income……………………………………………………………………………………
…
$190,280
Adjustments to reconcile net income to net cash flow
For the Year Ended December 31, 2014
CHARLES INC.
Statement of Cash Flows
16-28
CHAPTER 16 Statement of Cash Flows
Prob. 16–5A (Concluded)
Computations:
1. Sales…………………………………………………………………………………
…
$5,261,701
2. Cost of merchandise sold…………………………………………………………
…
$3,237,970
3. Operating expenses other than depreciation…………………………………
…
$1,722,798
4. Cash dividends declared…………………………………………………………
…
$ 72,000
…
16-29
…
CHAPTER 16 Statement of Cash Flows
Prob. 16–1B
Cash flows from operating activities:
Net income $141,680
Adjustments to reconcile net income to
net cash flow from operating activities:
Increase in accrued expenses
payable 3,740
Net cash flow from operating activities $ 154,260
For the Year Ended December 31, 2014
MERRICK EQUIPMENT CO.
Statement of Cash Flows
16-30
CHAPTER 16 Statement of Cash Flows
Prob. 16–1B (Concluded)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
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)
Increase in inventories (k) 8,670
Increase in accounts payable (f) 11,560
Increase in accrued expenses
payable (e) 3,740
Investing activities:
Debit Credit
MERRICK EQUIPMENT CO.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions
16-31
CHAPTER 16 Statement of Cash Flows
Prob. 16–2B
Cash flows from operating activities:
Decrease in accounts payable (89,600)
Decrease in salaries payable (8,120)
Net cash flow from operating activities $ 561,400
For the Year Ended December 31, 2014
HARRIS INDUSTRIES INC.
Statement of Cash Flows
16-32
CHAPTER 16 Statement of Cash Flows
Prob. 16–2B (Continued)
(Optional)
Balance Balance
Account Title Dec. 31, 2013 Dec. 31, 2014
Accum. depr.—buildings (414,540) (k) 51,660 (466,200)
Machinery and equipment 781,200 781,200
Accum. depr.—machinery and
equipment (191,520) (j) 22,680 (214,200)
Patents 112,000 (i) 5,040 106,960
Debit Credit
HARRIS INDUSTRIES INC.
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2014
Transactions