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C
Alternate Exercises and Problems 21–1
Chapter 21 The Statement of Cash Flows Revisited
EXERCISES
Exercise 21-1
Cost of Accounts Cash paid to
Situation goods sold Inventory payable suppliers
increase increase
1. Summary Entry Cost of goods sold 600
2. Summary Entry Cost of goods sold 600
21–2 Intermediate Accounting, 8/e
Exercise 21-2
RECONCILIATION OF NET INCOME TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
($ in millions)
C
Exercise 21-3
Requirement 1:
a. Summary Entry Cash (received from customers) 933
Accounts receivable 18
Sales revenue 915
Exercise 21-4
RECONCILIATION OF NET INCOME TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
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Alternate Exercises and Problems 21–5
PROBLEMS
Problem 21-1
Classifications
+ I Investing activity (cash inflow)
N 4. Conversion of bonds to common stock
N 5. Lease of a machine by lease
Problem 21-2
A2Z Industries
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 1,125 (14) 675 1,800
Accounts receivable 1,350 (1) 450 1,800
Income Statement
Revenues:
Sales revenue (1)7,935 7,935
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Alternate Exercises and Problems 21–7
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) 7,485
21–8 Intermediate Accounting, 8/e
Problem 21-2 (concluded)
A2Z Industries
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000)
Cash flows from operating activities:
Cash inflows:
From customers $7,485
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Alternate Exercises and Problems 21–9
Problem 21-3
A2Z Industries
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 1,125 (15) 675 1,800
Problem 21-3 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Cash Flows
Operating activities:
Net income (1) 2,925
C
Alternate Exercises and Problems 21–11
Problem 21-3 (concluded)
A2Z Industries
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000)
Cash flows from operating activities:
Net income $ 2,925
Adjustments for noncash effects:
Gain on sale of land (270)
Cash flows from investing activities:
Purchase of equipment $(2,700)
