Problem 16-3B
Instructions
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but is provided as an aid in determining amounts for the statement.
Score:
Key Code:
Name:
Section:
0%
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Net income (loss)
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Gain on sale of land
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:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 337,800 300,600
Accounts receivable (net) 609,600 704,400
Inventories 865,800 918,600
Prepaid expenses 26,400 18,600
Land 1,386,000 990,000
Buildings 990,000 1,980,000
Accum. depr. – buildings (366,000) (397,200)
Equipment 529,800 660,600
Accum. depr. – equipment (162,000) (133,200)
Accounts payable (631,200) (594,000)
Income tax payable (21,600) (26,400)
Bonds payable – (330,000)
Common stock, $20 par (180,000) (320,000)
Paid-in capital in excess of par (810,000) (950,000)
Retained earnings (2,574,600) (2,822,000)
For the Year Ended December 31, 2016
Transactions
Spreadsheet (Work Sheet) for Statement of Cash Flows
COULSON INC.
For the Year Ended December 31, 2016
COULSON INC.
Statement of Cash Flows
Totals – –
Operating activities:
Net income
Depreciation – equipment
Depreciation – buildings
Gain on sale of land
Increase in accounts receivable
Increase in inventories
Decrease in prepaid expenses
Decrease in accounts payable
Increase in income taxes payable
Investing activities:
Purchase of equipment
Acquisition of building
Sale of land
Financing activiities:
Payment of cash dividends
Issuance of bonds payable
Issuance of common stock
Net decrease in cash
Totals
Problem 16-3B
Instructions
Less cash paid for purchase of equipment
Increase (decrease) in cash
Cash received from issuance of common stock
Less cash paid for dividends
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income (loss) 326,600$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 68,400
Gain on sale of land (60,000)
Changes in current operating assets and liabilities:
456,000$
(990,000)
330,000$
Optional:
Balance, Balance,
Dec. 31, 2015 Debit Credit Dec. 31, 2016
Cash 337,800 (p) 37,200 300,600
Spreadsheet (Work Sheet) for Statement of Cash Flows
For the Year Ended December 31, 2016
Cash received from issuance of bonds payable
ON
An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded,
Score:
COULSON INC.
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Cash flows from investing activities:
Less cash paid for acquisition of building
Name:
Section:
Solution
Transactions
Statement of Cash Flows
For the Year Ended December 31, 2016
Cash flows from operating activities:
Cash received from land sold
COULSON INC.
Cash flows from financing activities:
Prepaid expenses 26,400 (g) 7,800 18,600
Land 1,386,000 (m) 396,000 990,000
Buildings 990,000 (l) 990,000 1,980,000
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 accounts receivable (i) 94,800
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers
Deduct:
Net cash flow from operating activities
Cash flows from investing activities:
Cash received from sale of investments
Less:
Net cash flow used for investing activities
Cash flows from financing activities:
Cash received from sale of common stock
Less:
Net cash flow from financing activities
Decrease in cash
Cash at the beginning of the year
Cash at the end of the year
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense
Loss on sale of investments
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Computations:
1. Sales
Cash received from customers
2. Cost of merchandise sold
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CANACE PRODUCTS INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
0%
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Score:
Key Code:
Instructions
Problem 16-4A
Name:
Section:
Subtotal
Cash payments for merchandise
3. Operating expenses other than depreciation
Cash payments for operating expenses
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers 5,960,600$
Deduct: (2,456,800)$
(3,107,400)
Net cash flow from financing activities 214,400
Decrease in cash (36,000)$
Cash at the beginning of the year
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
217,200$
Adjustments to reconcile net income to net cash flow from operating activities:
Increase in accounts payable
Decrease in accrued expenses payable
Increase in inventories
Depreciation expense 44,000
Loss on sale of investments 64,000
Changes in current operating assets and liabilities:
(19,400)
Computations:
1. Sales 5,980,000$
19,400
Deduct increase in accounts receivable
Increase in accounts receivable
Cash payments for operating expenses
For the Year Ended December 31, 2016
CANACE PRODUCTS INC.
Statement of Cash Flows
Cash payments for merchandise
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Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Problem 16-4A
Name:
Solution
Section:
ON
Cash flows from investing activities:
Cash flows from financing activities:
Cash paid for dividends
Cash payments for income taxes
Cash paid for purchase of land
Cash paid for purchase of equipment
Subtotal 2,480,200$
23,400
Deduct increase in accounts payable
An asterisk (*) will appear to the right of an incorrect entry.
Cash flows from operating activities:
Cash received from customers
Deduct:
Net cash flow from operating activities
Cash flows from investing activities:
Cash received from sale of investments
Less:
Net cash flow used for investing activities
Cash flows from financing activities:
Cash received from sale of common stock
Less:
Net cash flow from financing activities
Decrease in cash
Cash at the beginning of the year
Cash at the end of the year
Schedule Reconciling Net Income with Cash Flows from Operating Activities:
Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation expense
Gain on sale of investments
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Computations:
1. Sales
Cash received from customers
2. Cost of merchandise sold
0%
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[Key code here]
Answers are entered in the cells with gray backgrounds.
Score:
Key Code:
Instructions
MARTINEZ INC.
Statement of Cash Flows
For the Year Ended December 31, 2016
Problem 16-4B
Name:
Section:
Subtotal
Cash payments for merchandise
3. Operating expenses other than depreciation
Cash payments for operating expenses