*PROBLEM 17-3C
ANTAR COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Cash receipts from customers……… $5,720,000 (1)
Less cash payments:
To suppliers …………………………. $3,380,000 (2)
Computations:
(1) Cash receipts from customers
Sales ………………………………………………………… $5,400,000
Add: Decrease in accounts receivable ……….. 320,000
Cash receipts from customers …………………… $5,720,000
(2) Cash payments to suppliers
Cost of goods sold ……………………………………. $3,280,000
(3) Cash payments for operating expenses
Operating expenses ……………… $ 945,000
($420,000 + $525,000)
PROBLEM 17-4C
CARRON INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Net income …………………………………………………. $120,000
Adjustments to reconcile net income
to net cash provided by operating activities
*PROBLEM 17-5C
CARRON INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Cash receipts from customers…………. $580,000 (1)
Less cash payments:
(1) Computation of cash receipts from customers
Revenues ………………………………………………………………. $560,000
Add: Decrease in accounts receivable ……………………. 20,000
(2) Computation of cash payments for operating expenses
Operating expenses ……………………………………………….. $400,000
Add: Decrease in accounts payable ……………………….. 28,000
(3) Income tax expense ……………………………………………….. $ 40,000
Deduct: Increase in income taxes payable ……………… (6,000)
PROBLEM 17-6C
(a) JOSTEN COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Net income …………………………………………… $ 25,000
Adjustments to reconcile net income
to net cash used by operating
activities
Depreciation expense …………………….. $ 5,000
Increase in accounts receivable ………. (11,000)
Increase in inventory ……………………… (16,000)
Cash flows from investing activities
Sale of equipment …………………………………. 12,000
Purchase of equipment …………………………. (6,000)
Net cash provided by investing
activities …………………………………….. 6,000
Cash flows from financing activities
Issuance of bonds ………………………………… 10,000
Net decrease in cash ……………………………………. (9,000)
Cash at beginning of period …………………………. 33,000
Cash at end of period …………………………………… $ 24,000
*PROBLEM 17-7C
(a) JOSTEN COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Cash receipts from customers …….. $270,000 (1)
Less cash payments:
To suppliers ………………………… $233,000 (2)
For operating expenses ……….. 32,000
($37,000 – $5,000)
Cash flows from investing activities
Sale of equipment ………………………. 12,000
Purchase of equipment ……………….. (6,000)
Net cash provided by
investing activities ……………. 6,000
Cash flows from financing activities
Net decrease in cash …………………………. (9,000)
Cash at beginning of period ……………….. 33,000
Cash at end of period ………………………… $ 24,000
Computations:
(1) Cash receipts from customers
*PROBLEM 17-7C (Continued)
(2) Cash payments to suppliers
Cost of goods sold ………………………………………… $204,000
Add: Increase in inventory …………………………….. 16,000
(3) Cash payments for income taxes
Income tax expense ………………………………………. $ 10,000
PROBLEM 17-8C
PRESSURE COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Net income ………………………………………………. $ 111,500
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation expense ………………………… $ 30,500
Gain on disposal of plant assets …………. (4,000)
Increase in accounts receivable ………….. (23,800)
Cash flows from investing activities
Sale of investments ………………………………….. 27,500
Sale of plant assets ………………………………….. 16,000
Cash flows from financing activities
Issuance of bonds ……………………………………. 75,000
Sale of common stock ………………………………. 50,000
Net increase in cash ………………………………………… 90,300
Cash at beginning of period …………………………….. 33,400
Cash at end of period ………………………………………. $ 123,700
*PROBLEM 17-9C
PRESSURE COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Cash receipts from customers …………. $273,700 (1)
Less cash payments:
To suppliers …………………………….. $ 116,830 (2)
For operating expenses …………….. 23,240 (3)
Cash flows from investing activities
Sale of investments …………………………. 27,500
Sale of plant assets …………………………. 16,000
Cash flows from financing activities
Issuance of bonds …………………………... 75,000
Sale of common stock……………………… 50,000
Net increase in cash ………………………………. 90,300
Cash at beginning of period ……………………. 33,400
*PROBLEM 17-9C (Continued)
Computations:
(1) Cash receipts from customers
Sales ……………………………………………………………………. $297,500
Deduct: Increase in accounts receivable ………………. (23,800)
Cash receipts from customers ………………………………. $273,700
(2) Cash payments to suppliers
Cost of goods sold ……………………………………………….. $ 99,000
(3) Cash payments for operating expenses
Operating expenses ……………………………………………… $ 19,670
PROBLEM 17-10C
MEDIC COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Net income ………………………………………………….. $47,890
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation expense ……………………………. $ 53,000
Gain on disposal of equipment ………………. (2,000)*
Increase in accounts receivable …………….. (13,000)
Cash flows from investing activities
Sale of land …………………………………………………. 30,000
Sale of equipment ………………………………………… 37,000
Cash flows from financing activities
Payment of cash dividends ………………………….. (84,290)
Net decrease in cash ………………………………………….. (16,000)
Noncash investing and financing activities
Conversion of bonds by issuance of stock …….. $20,000