Problem 16-1A
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
CHARLES INC.
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.
CHARLES INC.
Statement of Cash Flows
Balance, Balance,
Dec. 31, 2013 Debit Credit Dec. 31, 2014
Cash 439,440 469,320
Accounts receivable (net) 156,720 170,880
Inventories 462,840 481,320
Investments 180,000 –
Land – 246,000
Equipment 414,840 528,840
Accum. depr. – equipment (111,000) (124,800)
Accounts payable (303,720) (318,360)
Accrued expenses payable (39,480) (31,680)
Dividends payable (14,400) (18,000)
Common stock, $2 par (75,000) (95,000)
Paid-in capital in excess of par (210,000) (290,000)
Retained earnings (900,240) (1,018,520)
Totals – –
Operating activities:
Net income
Depreciation
Gain on sale of investments
Increase in accounts receivable
Increase in inventories
Increase in accounts payable
Decrease in accrued expenses payable
Investing activities:
Purchase of equipment
Purchase of land
Sale of investments
Financing activities:
Declaration of cash dividends
Sale of common stock
Increase in dividends payable
Net increase in cash
Totals
For the Year Ended December 31, 2014
Spreadsheet (Work Sheet) for Statement of Cash Flows
Transactions
Problem 16-1A
Instructions
Answers are entered in the cells with gray backgrounds.
but is provided as an aid in determining amounts for the statement.
Net income 190,280$
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation 13,800
Optional:
CHARLES INC.
Name:
Section:
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,
CHARLES INC.
Cells with non-gray backgrounds are protected and cannot be edited.
Cash received from sale of common stock
Gain on sale of investments
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 439,440 (m) 29,880 469,320
Accounts receivable (net) 156,720 (l) 14,160 170,880
For the Year Ended December 31, 2014
Spreadsheet (Work Sheet) for Statement of Cash Flows
Transactions