Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 21, Problem 21.14E
Identifying
• LO21–5, LO21–6
In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:
| ($ in millions) | |
| Payment for the early extinguishments of long-term notes (book value: $50 million) | $ 54 |
| Sale of common shares | 176 |
| Retirement of common shares | 122 |
| Loss on sale of equipment | 2 |
| Proceeds from sale of equipment | 8 |
| Issuance of short-term note payable for cash | 10 |
| Acquisition of building for cash | 7 |
| Purchase of marketable securities (not a cash equivalent) | 5 |
| Purchase of marketable securities (considered a cash equivalent) | 1 |
| Cash payment for 3-year insurance policy | 3 |
| Collection of note receivable with interest (principal amount, $11) | 13 |
| Declaration of cash dividends | 33 |
| Distribution of cash dividends declared in 2017 | 30 |
Required:
- 1. In Millennium’s statement of cash flows, what were net
cash inflows (or outflows) from investing activities for 2018? - 2. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018?
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Problem 21-16 (Algo) Statement of cash flows; indirect method [LO21-4, 21-8]
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
DUX COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands)
2021
2020
Assets
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$
117.0
$
34.0
Accounts receivable
62.0
64.0
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(3.0
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(2.0
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Dividends receivable
17.0
16.0
Inventory
69.0
64.0
Long-term investment
29.0
24.0
Land
84.0
40.0
Buildings and equipment
169.0
264.0
Less: Accumulated depreciation
(7.0
)
(120.0
)
$
537.0
$
384.0
Liabilities
Accounts payable
$
27.0
$
34.0
Salaries payable
16.0
19.0
Interest payable
18.0
16.0
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Problem 21-17 (Algo) Statement of cash flows; indirect method [LO21-4, 21-8]
Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
METAGROBOLIZE INDUSTRIESComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands)
2021
2020
Assets
Cash
$
405
$
245
Accounts receivable
350
190
Inventory
500
275
Land
500
450
Building
900
900
Less: Accumulated depreciation
(200
)
(180
)
Equipment
2,500
2,150
Less: Accumulated depreciation
(325
)
(300
)
Patent
1,000
1,150
$
5,630
$
4,880
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$
600
$
400
Accrued liabilities
150
130
Lease liability—land
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0
Shareholders' Equity
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Problem 21-4 (Static) Statement of cash flows; direct method [LO21-3, 21-8]
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company.
Additional information from Dux's accounting records is provided also.
Chapter 21 Solutions
Intermediate Accounting
Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2QCh. 21 - Prob. 21.3QCh. 21 - Prob. 21.4QCh. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q
Ch. 21 - Perhaps the most noteworthy item reported on an...Ch. 21 - Prob. 21.12QCh. 21 - Given sales revenue of 200,000, how can it be...Ch. 21 - Prob. 21.14QCh. 21 - When determining the amount of cash paid for...Ch. 21 - Prob. 21.16QCh. 21 - When using the indirect method of determining net...Ch. 21 - Prob. 21.18QCh. 21 - Prob. 21.19QCh. 21 - Where can we find authoritative guidance for the...Ch. 21 - U.S. GAAP designates cash outflows for interest...Ch. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Prob. 21.5BECh. 21 - Prob. 21.6BECh. 21 - Prob. 21.7BECh. 21 - Prob. 21.8BECh. 21 - Investing activities LO215 Carter Containers sold...Ch. 21 - Financing activities LO216 Refer to the situation...Ch. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Classification of cash flows LO213 through LO216...Ch. 21 - Determine cash paid to suppliers of merchandise ...Ch. 21 - Determine cash received from customers LO213...Ch. 21 - Prob. 21.4ECh. 21 - Prob. 21.5ECh. 21 - Prob. 21.6ECh. 21 - Determine cash paid for bond interest LO213...Ch. 21 - Determine cash paid for bond interest LO213 For...Ch. 21 - Determine cash paid for income taxes LO213...Ch. 21 - Prob. 21.10ECh. 21 - Prob. 21.11ECh. 21 - Installment note; statement of cash flow effects ...Ch. 21 - Prob. 21.13ECh. 21 - Identifying cash flows from investing activities...Ch. 21 - Prob. 21.15ECh. 21 - Prob. 21.16ECh. 21 - Indirect method; reconciliation of net income to...Ch. 21 - Spreadsheet entries from statement of retained...Ch. 21 - Prob. 21.19ECh. 21 - Prob. 21.20ECh. 21 - Cash flow s from operating activities (direct...Ch. 21 - Indirect method; reconciliation of net income to...Ch. 21 - Prob. 21.23ECh. 21 - Cash flows from operating activities (indirect...Ch. 21 - Prob. 21.25ECh. 21 - Cash flow s from operating activities (indirect...Ch. 21 - Prob. 21.27ECh. 21 - Prob. 21.28ECh. 21 - Prob. 21.29ECh. 21 - Prob. 21.30ECh. 21 - Prob. 21.31ECh. 21 - Prob. 21.32ECh. 21 - Prob. 21.1PCh. 21 - Statement of cash flows; direct method LO213,...Ch. 21 - Prob. 21.3PCh. 21 - Statement of cash flows; direct method LO213,...Ch. 21 - Statement of cash flows; direct method LO213,...Ch. 21 - Cash flows from operating activities (direct...Ch. 21 - Prob. 21.7PCh. 21 - Cash flows from operating activities (direct...Ch. 21 - Cash flows from operating activities (direct...Ch. 21 - Prob. 21.10PCh. 21 - Prepare a statement of cash flows; direct method ...Ch. 21 - Prob. 21.12PCh. 21 - Prob. 21.13PCh. 21 - Statement of cash flows; indirect method; limited...Ch. 21 - Integrating problem; bonds; lease transactions;...Ch. 21 - Statement of cash flows; indirect method LO214,...Ch. 21 - Prob. 21.17PCh. 21 - Statement of cash flows; indirect method LO214,...Ch. 21 - Prob. 21.19PCh. 21 - Prob. 21.20PCh. 21 - Prob. 21.21PCh. 21 - Prob. 21.1BYPCh. 21 - Prob. 21.2BYPCh. 21 - Research Case 213 Information from cash flow...Ch. 21 - Analysis Case 215 Smudged ink; find missing...Ch. 21 - Real World Case 216 Analyze cash flow activities;...Ch. 21 - Prob. 21.7BYPCh. 21 - Prob. 21.8BYPCh. 21 - Research Case 219 FASB codification; locate and...Ch. 21 - IFRS Case 2110 Statement of cash flows...Ch. 21 - Prob. CCTC
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