Statement of Cash Flow

Problem 1
Colon Company uses the direct method to prepare its statement of cash flows. The company had the following cash flows
during the year:
Cash receipts from the issuance of ordinary shares 400,000
Cash receipts from customers 200,000
Cash receipts from dividends on long-term investments 30,000
Cash receipts from repayment of loan made to another company 220,000
Cash payments for wages and other operating expenses 120,000
Cash payments for insurance 10,000
Cash payments for dividends 20,000
Cash payments for taxes 40,000
Cash payments to purchase land 80,000

The net cash provided by (used in) operating activities is

Problem 2
JS Company uses the direct method to prepare its statement of cash flows. JS had the following cash flows for 2020:
Cash receipts from issuance of ordinary shares 800,000
Cash receipts from customers 400,000
Cash receipts from dividends on long-term investment 60,000
Cash receipts from repayment of loan made to another company 440,000
Cash payments for wages and other operating expenses 240,000
Cash payments for insurance 20,000
Cash payments for dividends 40,000
Cash payments for taxes 80,000
Cash payment to purchase land 160,000

Required: What is the net cash provided (used) from operating activities?

Problem 3
JD uses the direct method to prepare its statement of cash flows. JD had the following cash flows during 2020:
Cash receipts from sale of an old van 160,000
Cash receipts from issuance of ordinary shares 2,000,000
Cash receipts from issuance of 10%, 10-year bonds 1,500,000
Cash receipts from customers 1,000,000
Cash receipts from repayment of loan made to other company 1,200,000
Cash receipts from dividends 150,000
Cash receipts as interest 150,000
Cash payment for operating expenses 650,000
Cash payments for taxes 300,000
Cash payments for equity securities bought 900,000
Cash payments for equipment purchased 300,000
Cash payments for land acquired 1,200,000

Required: What is the net cash provided (used) from investing activities?

Problem 4
LL Inc. uses the direct method to prepare its statement of cash flows. LL had the following cash flows during 2020:
Cash receipts from issuance of bonds 800,000
Cash receipts from issuance of ordinary shares 1,400,000
Cash receipts from customers 700,000
Cash receipts from dividends on long-term investment 105,000
Cash receipts from repayment of loan made to another company 660,000
Cash payments for wages and other operating expenses 420,000
Cash payment for reacquisition of treasury shares 250,000
Cash payments for dividends 70,000
Cash payment for taxes 140,000
Cash payment to purchase land 280,000

Required: What is the net cash provided (used) from financing activities?

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 Problem 5
O Company provided the following data for the current year:
Cash balance, beginning of year 650,000
Shareholders’ equity, beginning of year 1,000,000
Shareholders’ equity, end of year 1,150,000
Cash flow from financing activities 500,000
Cash flow from operating activities 200,000
Cash flow from investing activities (750,000)

Required: What is the cash balance at the end of current year?

Problem 6
S Company provided the following information for the current year:
December 31 January 1
Cash 1,500,000 1,000,000
Retained Earnings 7,000,000 5,400,000
Cash flow from investing activities (4,800,000)
Cash flow from financing activities 1,800,000
Dividends declared and paid 2,000,000
Net income 3,600,000

Required: What amount should be reported as cash flow from operating activities?

Problem 7
Butuan Company provided the following information for the current year:
Sales 6,000,000
Cost of goods manufactured and sold (2,800,000)
Gross profit 3,200,000
Selling, general and administrative expenses, including depreciation of 600,000 (2,000,000)
Income before income tax 1,200,000
Income tax (400,000)
Net income 800,000

Additional information for the current year were as follows:

Cash, beginning of the year 200,000 Accrued expenses, beginning of the year 30,000
Cash, end of the year 400,000 Accrued expenses, end of the year 60,000
Accounts receivable, beginning of the year 300,000 Income tax payable, beginning of the year 100,000
Accounts receivable, end of the year 800,000 Income tax payable, end of the year 50,000
Inventory, beginning of the year 300,000 Accounts payable, beginning of the year 140,000
Inventory, end of the year 200,000 Accounts payable, end of the year 280,000
Prepaid expenses, beginning of the year 20,000
Prepaid expenses, end of the year 40,000

Required: Net cash provided (used) by operating activities

Problem 8
The following are items taken from the records of Currency Company for 2020:
a. Profit after tax expense of 780,000 1,820,000
b. Payment for purchase of land 400,000
c. Payment for retirement of bonds 600,000
d. Depreciation expense 750,000
e. Proceeds from issuance of ordinary shares 700,000
f. Share of profit of subsidiary 480,000
g. Patent amortization expense 270,000
h. Interest expense 100,000
i. Increase in accounts receivable 340,000
j. Payment of dividends 500,000
k. Decrease in accounts payable 26,000
l. Increase in interest payable 18,000
m. Increase in income tax payable 60,000
This study source was downloaded by 100000839742471 from CourseHero.com on 03-13-2022 07:14:04 GMT -05:00
Required: Net cash from operating activities using the indirect method
https://www.coursehero.com/file/81992505/Statement-of-Cash-Flows-Exercisesdocx/
 Problem 9
The following are various cash flows and other information of the Yen Company for 2020:
a. Payment of interest 82,000
b. Proceeds from sale of land 79,000
c. Payment of dividends 121,000
d. Depreciation expense 24,000
e. Collections from customers 983,000
f. Payments of income taxes 154,000
g. Proceeds from issuance of ordinary share capital 189,000
h. Payments to suppliers and employees 675,000
i. Increase in inventories 46,000

Required: Net cash from operating activities using the direct method

Problem 10
The Peso Company reported the following condensed profit or loss for 2020:
Sales 1,000,000
Cost of goods sold 580,000
Gross profit 420,000
Operating expenses
Depreciation expense 80,000
Salaries expense 120,000 200,000
Profit before income taxes 220,000
Income tax expense 66,000
Profit 154,000

During 2020, the following changes occurred in the company’s current assets and current liabilities:
Increase (Decrease)
Cash 37,000
Accounts receivable (50,000)
Inventories 89,000
Accounts payable (trade) (46,000)
Salaries payable 24,000
Income tax payable 12,000

Required: Net cash from operating activities using either the direct method or indirect method

Problem 11
The profit or loss section of the statement of comprehensive income of Swiss Franc Company for the year ended
December 31, 2020 is reproduced below:
Sales 6,100,000
Cost of goods sold (3,700,000)
Gross profit 2,400,000
Gain on sale of equipment 100,000
Salaries expense (820,000)
Insurance expense (380,000)
Depreciation expense (220,000)
Profit before interest and income tax 1,080,000
Interest expense (120,000)
Profit before income tax 960,000
Income tax expense (288,000)
Profit 672,000

The following information is also available:

Decrease in accounts receivable 120,000 Decrease in interest payable 30,000
Increase in inventory 280,000 Amortization of premium on bonds payable 25,000
Decrease in accounts payable 160,000 Increase in income tax payable 18,000
Increase in salaries payable 100,000 Decrease in deferred tax asset 40,000
Increase in prepaid insurance 180,000 Decrease in deferred tax liability 22,000

Required: Net cash from operating activities using either the direct method or indirect method
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https://www.coursehero.com/file/81992505/Statement-of-Cash-Flows-Exercisesdocx/

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