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Problem 21–2
WRIGHT COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 30 (15) 12 42
Liabilities:
Accounts payable 35 (2) 7 28
Salaries payable 5 (3) 3 2
Interest payable 3 (5) 2 5
Statement of Income
Revenues:
Sales revenue (1) 380 380
Expenses:
Cost of goods sold (2) 130 (130)
Salaries expense (3) 45 (45)
21–62 Intermediate Accounting, 8/e
Problem 21–2 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Cash Flows
Operating activities:
Cash inflows:
From customers (1) 382
Investing activities:
Sale of land (6) 7
Financing activities:
Repayment of notes payable (11) 30
Sale of bonds payable (12) 60
Problem 21–2 (concluded)
WRIGHT COMPANY
Statement of Cash Flows
For year ended December 31, 2016 (in $000)
Cash flows from operating activities:
Cash inflows:
From customers $382
Cash outflows:
Cash flows from investing activities:
Sale of land 7
Cash flows from financing activities:
Repayment of notes payable (30)
Sale of bonds payable 60
Net increase in cash 12
Cash balance, January 1 30
Problem 21–3
NATIONAL INTERCABLE COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 55 (18) 14 69
Accounts receivable 164 (1) 9 173
Liabilities:
Accounts payable 45 (4) 15 30
Salaries payable 8 (5) 5 3
Shareholders' Equity:
Common stock 290 (15) 20 310
Problem 21–3 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Income
Revenues:
Sales revenue (1) 320 320
Expenses:
Cost of goods sold (4) 125 (125)
Net income (12) 22 22
21–66 Intermediate Accounting, 8/e
Problem 21–3 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Cash Flows
Operating activities:
Cash inflows:
From customers (1) 311
Investing activities:
Sale of long-term investment (3) 35
Sale of building parts (11) 3
Net cash flows 38
Financing activities:
Retirement of bonds payable (14) 130
Problem 21–3 (concluded)
NATIONAL INTERCABLE COMPANY
Statement of Cash Flows
For year ended December 31, 2016 ($ in millions)
Cash flows from operating activities:
Cash inflows:
From customers $311
Cash flows from investing activities:
Sale of building parts 3
Cash flows from financing activities:
Retirement of bonds payable (130)
Net increase in cash 14
Cash balance, January 1 55
Cash balance, December 31 $ 69
Noncash investing and financing activities:
Problem 21–4
DUX COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 20 (17) 13 33
Accounts receivable 47 (1) 3 44
Liabilities:
Accounts payable 20 (3) 7 13
Salaries payable 5 (4) 3 2
Interest payable 2 (6) 2 4
Shareholders' Equity:
Common stock 200 (14) 10 210
Paid-in capital—ex. of par 20 (14) 4 24
X Noncash investing and financing activity.
Problem 21–4 (continued)
Spreadsheet for the Statement of Cash Flows (continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Income
Revenues:
Sales revenue (1) 200 200
Dividend revenue (2) 3 3
Expenses:
Cost of goods sold (3) 120 (120)
Net income (9) 25 25
Statement of Cash Flows
Operating activities:
Cash inflows:
From customers (1) 203
Net cash flows 22
Investing activities:
Sale of building (7) 7
Purchase of LT investment (10) 5
Purchase of equipment (12) 15
Net cash flows (13)
Financing activities:
Sale of bonds payable (13) 25
21–70 Intermediate Accounting, 8/e
Problem 21–4 (concluded)
DUX COMPANY
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000s)
Cash flows from operating activities:
Cash inflows:
From customers $203
Cash flows from investing activities:
Sale of building 7
Purchase of long-term investment (5)
Cash flows from financing activities:
Sale of bonds payable 25
Net increase in cash 13
Cash balance, January 1 20
Cash balance, December 31 $33
Problem 21–5
METAGROBOLIZE INDUSTRIES
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 375 (14) 225 600
Accounts receivable 450 (1) 150 600
Liabilities:
Accounts payable 450 (4) 300 750
Accrued expenses 225 (9) 75 300
Lease liability—land 0 X (2) 150 150
Shareholders' Equity:
Common stock 3,000 (12) 150 3,150
Income Statement
Revenues:
Sales revenue (1) 2,645 2,645
Gain on sale of land (3) 90 90
Expenses:
Cost of goods sold (4) 600 (600)
Problem 21–5 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Cash Flows
Operating activities:
Cash inflows:
From customers (1) 2,495
Financing activities:
Payment of cash dividends (13) 450
Net cash flows (450)
Net increase in cash (14) 225 225
Totals 8,155 8,155
Problem 21–5 (concluded)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000)
Cash flows from operating activities:
Cash inflows:
From customers $2,495
Cash flows from investing activities:
Purchase of equipment (900)
Cash flows from financing activities:
Payment of cash dividends (450)
Net cash flows from financing activities (450)
Net increase in cash 225
21–74 Intermediate Accounting, 8/e
Problem 21–6
Requirement 1
a. Summary Entry Cash (received from customers) 155
Accounts receivable 5
Sales revenue 150
d. Summary Entry Interest expense 6
Discount on bonds payable 3
Cash (paid for interest) 3
Depreciation expense, bad debt expense, the gain on sale of equipment, and the loss
on sale of land are not cash outflows.
Problem 21–6 (concluded)
Requirement 2
Cash Flows from Operating Activities:
Cash received from customers $155
Cash paid to suppliers (87)
Problem 21–7
Cash Flows from Operating Activities:
Cash received from customers $316a
Cash increase from sale of cash equivalents 2b
a. Summary Entry Cash (received from customers) 316
b.
The gain on sale of cash equivalents indicates that total cash increased as a result of
converting cash in one form (say a $10 million treasury bill) to cash in another form
(checking account)*:
Summary Entry Cash [checking account] 12
[*Any other example you think of that involves a gain on sale of cash equivalents would work as well.]
c. Summary Entry Cost of goods sold 120
Inventory 12
Problem 21–7 (concluded)
f. Summary Entry Insurance expense 20
Prepaid insurance 4
Cash (paid for insurance ) 16
21–78 Intermediate Accounting, 8/e
Problem 21–8
Direct Method
Cash Flows from Operating Activities:
Cash received from customers $692
Cash paid to suppliers (103)
Net cash flows from
operating activities $350
Indirect Method
Cash Flows from Operating Activities:
Net income $ 88
Adjustments for noncash effects:
Depreciation expense 123
Changes in operating assets and liabilities:
Increase in accounts receivable (108)
Decrease in inventory 104
Problem 21–9
Direct Method
Cash Flows from Operating Activities:
Cash received from customers $926
Cash paid to suppliers (384)
Indirect Method
Cash Flows from Operating Activities:
Net income $ 40
Adjustments for noncash effects:
Depreciation expense 190
Inventory loss 12
Changes in operating assets and liabilities:
Decrease in accounts receivable 26
Problem 21–10
1. Cash received from customers $306
2. Cost of goods sold $180
3. ? in salaries payable Increase
