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  • Exercises On Cash Flow Statements

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    Sam Chintha
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    The document provides the statement of cash flows for a computer services company for the year ended December 31, 2011 using the indirect method. It shows that the company had net income of $145,000 and net cash provided by operating activities of $172,000. The company used $141,000 in investing activities and $9,000 in financing activities. The net increase in cash was $22,000 and the cash balance at the end of the period was $55,000. It also shows $110,000 in bonds payable were issued to purchase land.

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    cash flow statement exercises

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    Exercises on Cash Flow Statements

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    The document provides the statement of cash flows for a computer services company for the year ended December 31, 2011 using the indirect method. It shows that the company had net income of $145,000 and net cash provided by operating activities of $172,000. The company used $141,000 in investing activities and $9,000 in financing activities. The net increase in cash was $22,000 and the cash balance at the end of the period was $55,000. It also shows $110,000 in bonds payable were issued to purchase land.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    100 views3 pages

    Exercises On Cash Flow Statements

    Uploaded by

    Sam Chintha
    The document provides the statement of cash flows for a computer services company for the year ended December 31, 2011 using the indirect method. It shows that the company had net income of $145,000 and net cash provided by operating activities of $172,000. The company used $141,000 in investing activities and $9,000 in financing activities. The net increase in cash was $22,000 and the cash balance at the end of the period was $55,000. It also shows $110,000 in bonds payable were issued to purchase land.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 3

    Exercise I

    Solution: 5

    COMPUTER SERVICES COMPANY Statement of Cash FlowsIndirect Method For the Year Ended December 31, 2011 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash Provided by operating activities: Depreciation expense Loss on sale of equipment Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Decrease in income tax payable Net cash provided by operating activities Cash flows from investing activities Purchase of building Purchase of equipment Sale of equipment Net cash used by investing activities Cash flows from financing activities Issuance of common stock Payment of cash dividends Net cash used by financing activities Net increase in cash Cash at beginning of period Cash at end of period Noncash investing and financing activities Issuance of bonds payable to purchase land $110,000

    $145,000 $ 9,000 3,000 10,000 (5,000) (4,000) 16,000 (2,000) (120,000) (25,000) 4,000 (141,000) 20,000 (29,000) (9,000) 22,000 33,000 $ 55,000

    27,000 172,000

    Kimzoo Fireworks Ltd. income statement for the year ended December 31, 20X3, and its comparative balance sheets as at December 31, 20X3, and 20X2 appear below Kimzoo Fireworks Ltd. Income Statement Year ended December 31, 20X3 Sales $660,000 Cost of sales 363,000 Gross profit 297,000 Operating expenses 160,000 Interest expense 5,000 Amortization and depreciation expense 32,000 Income before income taxes 100,000 Income tax expense 33,000 Net income $ 67,000 Kimzoo Fireworks Ltd. Comparative Balance Sheet December 31, 20X3, and 20X2 December 31 20X3 20X2 Change Assets Cash and cash equivalents $ 99,000 $ 51,000 48,000 Accounts receivable 53,000 39,000 14,000 Inventory 50,000 60,000 (10,000) Prepaid expenses 6,000 9,000 (3,000) Property, plant, and equipment at cost $420,000 $350,000 $70,000 Accumulated depreciation (150,000) (125,000) (25,000) Property, plant, and equipment net 270,000 225,000 45,000 Patents 51,000 58,000 (7,000) Total assets $529,000 $442,000 Liabilities Dividends payable $2,000 $2,000 -0Trade payables 69,000 68,000 1,000 Mortgage payable -0- 150,000 (150,000)

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