the statement of cash flows chapter 14 exercises

The Statement of Cash Flows

Chapter 14

Exercises

• In-Class Exercise (Form groups and work exercise):

Exercise No. Page E14-21 856 Cash Flows Statement- Indirect Method

• In-Class Exercise (Form groups and work exercise):

Exercise No. Page E14-21 856 Cash Flows Statement- Indirect Method

(Use the schedule format, as reflected on the next slide, to begin the exercise)

Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

ExerciseExercise PagePage E14-21 856 Cash Flow StatementE14-21 856 Cash Flow Statement

ExerciseExercise PagePage E14-21 856 Cash Flow StatementE14-21 856 Cash Flow Statement

Use this format for the scheduleUse this format for the schedule

Exercise E14-21Exercise E14-21::

Use the following financial statements and additional information to prepare a Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, 2015.statement of cash flows for the year ended September 30, 2015.

Exercise E14-21Exercise E14-21::

Use the following financial statements and additional information to prepare a Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, 2015.statement of cash flows for the year ended September 30, 2015.

Minerals Plus, Inc.Income Statement

Sales revenue………… $235,000Cost of goods sold…. -97,000Gross profit…………… $138,000

Operating Expenses: Depreciation……… $26,000 Salaries Expense... 57,000 Total Expenses….. -83,000Income before taxes……….. $ 55,000 Income taxes expense…. -4,000

Net income……………….. $ 51,000

Minerals Plus, Inc.Comparative Balance Sheets

Assets 2015 2014Cash………………………………… $ 30,000 $ 8,000Accounts receivable…………….. 41,000 59,000Merchandise Inventory…..……… 97,000 93,000Plant assets……..………………… 199,000 80,000Accum. Depreciation….…………. -46,000 -20,000Land………………………………… 72,000 100,000Total Assets………………………. $393,000 $320,000

Liabilities & EquityAccounts Payable……………….. $ 30,000 $ 17,000Accrued liabilities……………….. 11,000 24,000Notes payable (long-term)……… 19,000 18,000Common Stock……………….….. 39,000 10,000Retained earnings……………….. 294,000 251,000Total liabilities and equity………. $393,000 $320,000

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Exercise E14-21Exercise E14-21::

Additional InformationAdditional Information::

a.a. Acquisition of plant assets is $119,000. Of this amount, Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a not $100,000 is paid in cash and $19,000 by signing a not payable.payable.

b.b. Cash receipt from sale of land totals $28,000. There is no Cash receipt from sale of land totals $28,000. There is no gain or loss.gain or loss.

c.c. Cash receipts from issuance of common stock total $29,000.Cash receipts from issuance of common stock total $29,000.

d.d. Payment of note payable is $18,000.Payment of note payable is $18,000.

e.e. Payment of dividends is $8,000.Payment of dividends is $8,000.

Exercise E14-21Exercise E14-21::

Additional InformationAdditional Information::

a.a. Acquisition of plant assets is $119,000. Of this amount, Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a not $100,000 is paid in cash and $19,000 by signing a not payable.payable.

b.b. Cash receipt from sale of land totals $28,000. There is no Cash receipt from sale of land totals $28,000. There is no gain or loss.gain or loss.

c.c. Cash receipts from issuance of common stock total $29,000.Cash receipts from issuance of common stock total $29,000.

d.d. Payment of note payable is $18,000.Payment of note payable is $18,000.

e.e. Payment of dividends is $8,000.Payment of dividends is $8,000.

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Preparing the Schedule for the Statement of Preparing the Schedule for the Statement of Cash FlowsCash Flows

Preparing the Schedule for the Statement of Preparing the Schedule for the Statement of Cash FlowsCash Flows

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows

Cash Flows from Operating ActivitiesCash Flows from Operating Activities

(Textbook Format)(Textbook Format)

Cash Flows from Operating ActivitiesCash Flows from Operating Activities

(Textbook Format)(Textbook Format)

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Textbook FormatTextbook Format

From Income StatementFrom Income StatementFrom Income StatementFrom Income Statement

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Textbook FormatTextbook Format

From Income StatementFrom Income StatementFrom Income StatementFrom Income Statement

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Textbook FormatTextbook Format

From From ScheduleSchedule

From From ScheduleSchedule

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Textbook FormatTextbook Format

Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows

Cash Flows from Operating ActivitiesCash Flows from Operating Activities

(Alternate Format)(Alternate Format)

Cash Flows from Operating ActivitiesCash Flows from Operating Activities

(Alternate Format)(Alternate Format)

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Alternate FormatAlternate Format

From Income StatementFrom Income StatementFrom Income StatementFrom Income Statement

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Alternate FormatAlternate Format

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Alternate FormatAlternate Format

From ScheduleFrom ScheduleFrom ScheduleFrom Schedule

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Alternate FormatAlternate Format

From ScheduleFrom ScheduleFrom ScheduleFrom Schedule

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Alternate FormatAlternate Format

Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows

Cash Flows from Investing and FinancingCash Flows from Investing and FinancingCash Flows from Investing and FinancingCash Flows from Investing and Financing

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method

End of ExerciseEnd of Exercise

Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method