Problem 21–16
DUX COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 20 (19) 13 33
Accounts receivable 47 (5) 3 44
Liabilities:
Accounts payable 20 (8) 7 13
Salaries payable 5 (9) 3 2
Shareholders’ Equity:
Common stock 200 (16) 10 210
Paid-in capital—ex. of par 20 (16) 4 24
21–102 Intermediate Accounting, 8/e
Problem 21–16 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Cash Flows
Net income (1) 25
Adjustments for noncash effects:
Depreciation expense (2) 5
Amortization of discount (3) 1
Loss on sale of building (4) 3
Net cash flows 22
Investing activities:
Sale of building (4) 7
Financing activities:
Sale of bonds payable (15) 25
Net increase in cash (19) 13 13
___ ___
Totals 216 216
Problem 21–16 (concluded)
DUX COMPANY
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000s)
Cash flows from operating activities:
Net income $25
Adjustments for noncash effects:
Depreciation expense 5
Amortization of discount 1
Cash flows from investing activities:
Sale of building 7
Cash flows from financing activities:
Sale of bonds payable 25
Net increase in cash 13
Cash balance, January 1 20
Cash balance, December 31 $33
Problem 21–17
METAGROBOLIZE INDUSTRIES
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 375 (15) 225 600
Accounts receivable 450 (7) 150 600
5,850 6,900
Liabilities:
Accounts payable 450 (9) 300 750
Shareholders’ Equity:
Common stock 3,000 (13) 150 3,150
Problem 21–17 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Statement of Cash Flows
Operating activities:
Net income (1) 975
Adjustments for noncash effects:
Gain on sale of land (2) 90
Depreciation expense—build (3) 30
Net cash flows 1,395
Investing activities:
Purchase of equipment (12) 900
Financing activities:
Payment of cash dividends (14) 450
21–106 Intermediate Accounting, 8/e
Problem 21–17 (concluded)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000s)
Cash flows from operating activities:
Net income $ 975
Adjustments for noncash effects:
Gain on sale of land (90)
Depreciation expense—building 30
Cash flows from investing activities:
Purchase of equipment (900)
Sale of land 165
Sale of equipment 15
Net cash flows from investing activities (720)
Noncash investing and financing activities:
Problem 21–18
ARDUOUS COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2015 Debits Credits 2016
Balance Sheet
Assets:
Cash 81 (24) 35 116
Land 150 (17) 46 X 196
Buildings and equipment 400 (18) 82 X (15) 70 412
Less: Acc. depreciation (120) (15) 35 (2) 12 (97)
Patent 32 (3) 2 30
1,074 1,218
Liabilities:
Accounts payable 65 (10) 15 50
Salaries payable 11 (11) 5 6
Shareholders’ Equity:
Common stock 410 (20) 20 430
Problem 21–18 (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) 67
Adjustments for noncash effects:
Depreciation expense (2) 12
Patent amortization expense (3) 2
Amortization of discount (4) 3
Net cash flows 82
Investing activities:
Sale of machine components (15) 17
Financing activities:
Retirement of bonds payable (19) 60
Net increase in cash (24) 35 35
Totals 588 588
Problem 21–18 (continued)
Arduous Company
Statement of Cash Flows
For year ended December 31, 2016 ($ in millions)
Cash flows from operating activities:
Net income $67
Adjustments for noncash effects:
Depreciation expense 12
Changes in operating assets and liabilities:
Decrease in accounts receivable 4
Increase in investment revenue receivable (2)
Increase in investment due to equity method income (6)
Net cash flows from operating activities $ 82
Cash flows from investing activities:
Sale of machine components 17
Purchase of long-term investment (25)
Purchase of land (23)
Net cash flows from investing activities (31)
Cash flows from financing activities:
Retirement of bonds payable (60)
Net increase in cash 35
21–110 Intermediate Accounting, 8/e
Problem 21–18 (concluded)
Noncash investing and financing activities:
Acquired $82 million building by 15-year lease.
Acquired $46 million of land by issuing cash and a 15%, 4-year note as follows:
The following problems use the technique learned in Appendix 21–B.
Problem 21–19
BALANCE SHEET ACCOUNTS
Cash (Statement of Cash Flows)
_____________________________________________________________
13
Operating Activities:
From customers (1) 203 132 (3) To suppliers of goods
From dividends received (2) 2 28 (4) To employees
5 (6) For interest
Accounts Receivable
______________________
3
_________________
3 (1)
21–112 Intermediate Accounting, 8/e
Problem 21–19 (continued)
Long-term Investments Land
______________________ ______________________________
5 30
________________
(10) 5 X (11) 30
Buildings and Equipment Accumulated Depreciation
Interest Payable Income Tax Payable
______________________ ______________________________
2 1
________________
2 (6) (8) 1
Notes Payable Bonds Payable
Problem 21–19 (continued)
Paid-in Capital Retained Earnings
______________________ _______________________________
(15) 13
Treasury Stock
______________________
Problem 21–19 (continued)
INCOME STATEMENT ACCOUNTS
Sales Dividend Revenue
______________________ ______________________________
Cost of Goods Sold Salaries Expense
______________________ ______________________________
120 25
________________
(3) 120 (4) 25
Depreciation Expense Bad Debts Expense
______________________ ______________________________
Interest Expense Loss on Sale of Building
______________________ ______________________________
8 3
________________
(6) 8 (7) 3
Income Tax Expense Net Income (Income Summary)
______________________ ______________________________
Problem 21–19 (concluded)
DUX COMPANY
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000s)
Cash flows from operating activities:
Cash inflows:
From customers $203
Cash flows from investing activities:
Sale of building 7
Cash flows from financing activities:
Sale of bonds payable 25
Net increase in cash 13
Cash balance, January 1 20
Cash balance, December 31 $33
Noncash investing and financing activities:
Problem 21–20
BALANCE SHEET ACCOUNTS
Cash (Statement of Cash Flows)
______________________________________________________________
225
Operating Activities:
From customers (1) 2,495 675 (4) To suppliers
425 (9) For expenses
Financing Activities:
450 (13) Payment of div.
Accounts Receivable Inventory
Land Accumulated Depr.-Buildings
______________________ ______________________________
75 30
________________
X (2) 150 75 (3) 30 (5)
Equipment Accumulated Depr.-Equipment
Problem 21–20 (continued)
Patent Accounts Payable
Accrued Expenses Payable Lease Liability-Land
______________________ _______________________________
75 150
_________________
75 (9) 150 (2) X
Common Stock Paid-in Capital
Retained Earnings
______________________
300
_________________
Problem 21–20 (continued)
INCOME STATEMENT ACCOUNTS
Sales Gain on Sale of Land
______________________ ______________________________
Cost of Goods Sold Depreciation Expense—Build.
______________________ ______________________________
600 30
________________
Depreciation Expense—Equip. Loss on Sale of Equipment
______________________ ______________________________
315 15
________________
(6) 315 (7) 15
Amortization of Patent Operating Expenses
Net Income (Income Summary)
______________________
Problem 21–20 (concluded)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2016 ($ in 000s)
Cash flows from operating activities:
Cash inflows:
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
21–120 Intermediate Accounting, 8/e
Problem 21–21
BALANCE SHEET ACCOUNTS
Cash (Statement of Cash Flows)
________________________________________________________________
35
Operating Activities:
From customers (1) 414 200 (4) To suppliers of goods
Investing Activities:
Sale of machine components (11) 17 25 (13) Purchase of LT invest.
23 (14) Purchase of land
Accounts Receivable
______________________
4
________________
4 (1)
Prepaid Insurance Inventory