2 Semester Cengage Now, Warren Accounting
26th Edition
ISBN: 9781305662308
Author: WARREN
Publisher: Cengage
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Chapter 16, Problem 16.5APR
To determine
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
To Prepare: The statement of cash flows using the direct method of presenting cash flows from operating activities.
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Statement of cash flows-indirect methodThe comparative balance sheet of Navaria Inc. for December 31, 20Y3and 20Y2, is shown as follows: (attached)
Additional data obtained from an examination of the accounts in theledger for 2013 are as follows:a. The investments were sold for $175,000 cash.
b. Equipment and land were acquired for cash.c. There were no disposals of equipment during the year.d. The common stock was issued for cashe. There was a $500,000 credit to Retained Earnings for net income.f. There was a $90,000 debit to Retained Earnings for cashdividends declared.
InstructionsPrepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities.
Statement of cash flows-indirect methodThe comparative balance sheet of Livers Inc. for December 31, 2013 and20Y2, is shown as follows:
Additional data obtained from an examination of the accounts in theledger for 2013 are as follows:A. The investments were sold for $175,000 cash.
B. Equipment and land were acquired for cash.C. There were no disposals of equipment during the year.D. The common stock was issued for cash.E. There was a $500,000 credit to Retained Earnings for net income.F. There was a $90,000 debit to Retained Earnings for cashdividends declared.
InstructionsPrepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities.
Statement of Cash Flows Problem
On the basis of the following data for Breach Co. for the year ended December 31, 2016 and the preceding year, prepare the attached statement of cash flows using the indirect method of reporting cash flows from operating activities. Fill in the blanks and boxes in the accompanying Excel Sheet with the missing information. A worksheet is attached below for your use.
Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period.
Stock was issued for cash - 3,200 shares at $10 par.
Net income for 2016 was $76,000.
Cash dividends declared and paid were $13,000.
YearYear20162015Cash170,000$ 74,000Accounts receivable (net)78,00085,000Inventories106,50090,000Equipment395,000370,000Accumulated depreciation(195,000)(158,000)554,500$ 461,000$ Accounts payable (merchandise creditors)51,000$ 50,000$ Taxes payable2,5005,000Common stock, $10 par262,000230,000Retained earnings239,000176,000Totals554,500$ 461,000
Chapter 16 Solutions
2 Semester Cengage Now, Warren Accounting
Ch. 16 - What is the principal disadvantage of the direct...Ch. 16 - Prob. 2DQCh. 16 - A corporation issued 2,000,000 of common stock in...Ch. 16 - A retail business, using the accrual method of...Ch. 16 - Prob. 5DQCh. 16 - A long-term investment in bonds with a cost of...Ch. 16 - A corporation issued 2,000,000 of 20-year bonds...Ch. 16 - Fully depreciated equipment costing 50,000 is...Ch. 16 - Prob. 9DQCh. 16 - Name five common major classes of operating cash...
Ch. 16 - Prob. 16.1APECh. 16 - Classifying cash flows Identify whether each of...Ch. 16 - Prob. 16.2APECh. 16 - Prob. 16.2BPECh. 16 - Changes in current operating assets and...Ch. 16 - Changes in current operating assets and...Ch. 16 - Prob. 16.4APECh. 16 - Prob. 16.4BPECh. 16 - Prob. 16.5APECh. 16 - Land transactions on the statement of cash flows...Ch. 16 - Prob. 16.6APECh. 16 - Prob. 16.6BPECh. 16 - Cash payments for merchandisedirect method The...Ch. 16 - Cash payments for merchandisedirect method The...Ch. 16 - Free cash flow McMahon Inc. reported the following...Ch. 16 - Prob. 16.8BPECh. 16 - Prob. 16.1EXCh. 16 - Effect of transactions on cash flows State the...Ch. 16 - Prob. 16.3EXCh. 16 - Prob. 16.4EXCh. 16 - Cash flows from operating activities-indirect...Ch. 16 - Prob. 16.6EXCh. 16 - Prob. 16.7EXCh. 16 - Determining cash payments to stockholders The...Ch. 16 - Reporting changes in equipment on statement of...Ch. 16 - Prob. 16.10EXCh. 16 - Reporting land transactions on statement of cash...Ch. 16 - Prob. 16.12EXCh. 16 - Reporting land acquisition for cash and mortgage...Ch. 16 - Reporting issuance and retirement of longterm debt...Ch. 16 - Prob. 16.15EXCh. 16 - Prob. 16.16EXCh. 16 - Prob. 16.17EXCh. 16 - Prob. 16.18EXCh. 16 - Prob. 16.19EXCh. 16 - Prob. 16.20EXCh. 16 - Prob. 16.21EXCh. 16 - Prob. 16.22EXCh. 16 - Cash flows from operating activitiesdirect method....Ch. 16 - Prob. 16.24EXCh. 16 - Free cash flow The financial statement for Nike,...Ch. 16 - Free cash flow Lovato Motors Inc. has cash flows...Ch. 16 - Prob. 16.1APRCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.3APRCh. 16 - Statement of cash flows-direct method The...Ch. 16 - Prob. 16.5APRCh. 16 - Prob. 16.1BPRCh. 16 - Statement of cash flowsindirect method The...Ch. 16 - Prob. 16.3BPRCh. 16 - Statement of cash flows-direct method The...Ch. 16 - Prob. 16.5BPRCh. 16 - Ethics in Action Lucas Hunter, president of...Ch. 16 - Using the statement of cash flows You are...Ch. 16 - Dillip Lachgar is the president and majority...Ch. 16 - Prob. 16.4CP
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