Chapter 12: Q3DQ (page 565)
What are some financing activities reported on the statement of cash flows?
The financing activities which are reported on the statement of cash flow are the issue of common stock, payment of cash dividends, and issue of preference stock and repayment of debts.
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Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017.
| Selected 2017 Income Statement Data | Selected Year-End 2017 Balance Sheet Data | ||
Net income | \(400,000 | Accounts receivable increase | \)40,000 |
Depreciation expense | 80,000 | Prepaid expenses decrease | 12,000 |
Gain on sale of machinery | 20,000 | Accounts payable increase | 6,000 |
Wages payable decrease | 2,000 | ||
Refer to Samsung’s statement of cash flows in Appendix A. What investing activities result in cash outflows for the year ended December 31, 2015? List items and amounts.
Refer to the information reported about Satu Company in Problem 12-6B.
Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 12A.1; report operating activities under the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.
a. Net income was \(202,767.
b. Accounts receivable decreased.
c. Inventory increased.
d. Accounts payable decreased.
e. Income taxes payable decreased.
f. Depreciation expense was \)15,700.
g. Purchased equipment for \(30,250 cash.
h. Issued 3,000 shares at \)21 cash per share.
i. Declared and paid $60,000 of cash dividends.
Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017.
| Selected 2017 Income Statement Data | Selected Year-End 2017 Balance Sheet Data | ||
Net income | \(374,000 | Accounts receivable decrease | \)17,100 |
Depreciation expense | 44,000 | Inventory decrease | 42,000 |
Amortization expense | 7,20 0 | Prepaid expenses increase | 4,700 |
Gain on sale of plant assets | 6,000 | Accounts payable decrease | 8,200 |
Salaries payable increase | 1,200 | ||
Question:Label the following headings, line items, and notes with the numbers 1 through 13 according to their sequential order (from top to bottom) for presentation of the statement of cash flows.
a. “Cash flows from investing activities” title
b. “For period Ended date” heading
c. “Cash flows from operating activities” title
d. Company name
e. Schedule or note disclosure of noncash investing and financing transactions
f. “Statement of Cash Flows” heading
g. Net increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . . . \( #
h. Net cash provided (used) by operating activities . . . . . . . . . . . . \) #
i. Cash (and equivalents) balance at prior period-end . . . . . . . . . \( #
j. Net cash provided (used) by financing activities . . . . . . . . . . . . \) #
k. “Cash flows from financing activities” title
l. Net cash provided (used) by investing activities . . . . . . . . . . . . \( #
m. Cash (and equivalents) balance at current period-end . . . . . . . . \) #
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