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The Statement of Cash Flows Chapter 14 Exercises.

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Presentation on theme: "The Statement of Cash Flows Chapter 14 Exercises."— Presentation transcript:

1 The Statement of Cash Flows Chapter 14 Exercises

2 In-Class Exercise (Form groups and work exercise): Exercise No. Page E Cash Flows Statement- Indirect Method In-Class Exercise (Form groups and work exercise): Exercise No. Page E Cash Flows Statement- Indirect Method (Use the schedule format, as reflected on the next slide, to begin the exercise) Preparing the Statement of Cash Flows

3 Statement of Cash Flows – Indirect Method Exercise Page E Cash Flow Statement E Cash Flow Statement Exercise Page E Cash Flow Statement E Cash Flow Statement Use this format for the schedule

4 Exercise E14-21: Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, Exercise E14-21: Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, Minerals Plus, Inc. Income Statement Sales revenue………… $235,000 Cost of goods sold…. -97,000 Gross profit…………… $138,000 Operating Expenses: Depreciation……… $26,000 Salaries Expense... 57,000 Total Expenses….. -83,000 Income before taxes……….. $ 55,000 Income taxes expense…. -4,000 Net income……………….. $ 51,000 Minerals Plus, Inc. Comparative Balance Sheets Assets Cash………………………………… $ 30,000 $ 8,000 Accounts receivable…………….. 41,000 59,000 Merchandise Inventory…..……… 97,000 93,000 Plant assets……..………………… 199,000 80,000 Accum. Depreciation….…………. -46, ,000 Land………………………………… 72, ,000 Total Assets………………………. $393,000 $320,000 Liabilities & Equity Accounts Payable……………….. $ 30,000 $ 17,000 Accrued liabilities……………….. 11,000 24,000 Notes payable (long-term)……… 19,000 18,000 Common Stock……………….….. 39,000 10,000 Retained earnings……………….. 294, ,000 Total liabilities and equity………. $393,000 $320,000 Statement of Cash Flows – Indirect Method

5 Exercise E14-21: Additional Information: Additional Information: a.Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a not payable. b.Cash receipt from sale of land totals $28,000. There is no gain or loss. c.Cash receipts from issuance of common stock total $29,000. d.Payment of note payable is $18,000. e.Payment of dividends is $8,000. Exercise E14-21: Additional Information: Additional Information: a.Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a not payable. b.Cash receipt from sale of land totals $28,000. There is no gain or loss. c.Cash receipts from issuance of common stock total $29,000. d.Payment of note payable is $18,000. e.Payment of dividends is $8,000. Statement of Cash Flows – Indirect Method

6 Preparing the Schedule for the Statement of Cash Flows Statement of Cash Flows – Indirect Method

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9 Preparing the Statement of Cash Flows Cash Flows from Operating Activities (Textbook Format) Cash Flows from Operating Activities (Textbook Format) Statement of Cash Flows – Indirect Method

10 Textbook Format From Income Statement

11 Statement of Cash Flows – Indirect Method Textbook Format From Income Statement

12 Statement of Cash Flows – Indirect Method Textbook Format From Schedule

13 Statement of Cash Flows – Indirect Method Textbook Format

14 Preparing the Statement of Cash Flows Cash Flows from Operating Activities (Alternate Format) Cash Flows from Operating Activities (Alternate Format) Statement of Cash Flows – Indirect Method

15 Alternate Format From Income Statement

16 Statement of Cash Flows – Indirect Method Alternate Format

17 Statement of Cash Flows – Indirect Method Alternate Format From Schedule

18 Statement of Cash Flows – Indirect Method Alternate Format From Schedule

19 Statement of Cash Flows – Indirect Method Alternate Format

20 Preparing the Statement of Cash Flows Cash Flows from Investing and Financing Statement of Cash Flows – Indirect Method

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24 End of Exercise Statement of Cash Flows – Indirect Method


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