1. STATEMENT OF CASH FLOWS Prepared by James R. Reap

2. STATEMENT OF CASH FLOWS
BALANCE SHEET
CLASSIFICATIONS:
ASSETS
LIABILITIES & EQUITY
(1) _____________--->
(2) _____________--->
>
(3) _____________----
Current Assets
Current Liabilities
Retained Earnings (Net Income only)
Operating
Property, Plant, & Equipment
Long Term Investments
Long Term Liabilities
Paid in Capital
Retained Earnings
(Dividends only)

3. STATEMENT OF CASH FLOWS
BALANCE SHEET
CLASSIFICATIONS:
ASSETS
LIABILITIES & EQUITY
(1) _____________--->
(2) _____________--->
>
(3) _____________----
Current Assets
Current Liabilities
Retained Earnings (Net Income only)
Operating
Property, Plant, & Equipment
Long Term Investments
Long Term Liabilities
Paid in Capital
Retained Earnings
(Dividends only)
Investing

4. STATEMENT OF CASH FLOWS
BALANCE SHEET
CLASSIFICATIONS:
ASSETS
LIABILITIES & EQUITY
(1) _____________--->
(2) _____________--->
>
(3) _____________----
Current Assets
Current Liabilities
Retained Earnings (Net Income only)
Operating
Property, Plant, & Equipment
Long Term Investments
Long Term Liabilities
Paid in Capital
Retained Earnings
(Dividends only)
Investing
Financing

5. STATEMENT OF CASH FLOWS
OPERATING ACTIVITIES
SECTION 1: CASH FLOWS FROM ______________________________
Net Income, per Income Statement
_____ Non-cash expenses (Depreciation, Depletion, & Amortization)
_____ Losses on non-current items
_____ Decreases in current assets
_____ Increases in current liabilities
_____ Amortization of bond premium
_____ Gains on non-current items
_____ Increases in current assets
_____ Decreases in current liabilities + + +
Simple Rules:
Net Income
+ Depr +
+ Losses
- Gains -
+ C A
- C A
- CASH
+ CASH -
+ C L
- C L -
+ CASH
- CASH -

6. STATEMENT OF CASH FLOWS
INVESTING ACTIVITIES
SECTION 2: CASH FLOWS FROM ______________________________
Includes total cash received from and paid for the following:
_____________________________________________________
Property, Plant, & Equipment and Long Term Investments
FINANCING ACTIVITIES
SECTION 3: CASH FLOWS FROM ______________________________
Includes total cash received from and paid for the following:
_____________________________________________________
Long Term Liabilities, Stock Transactions, and Dividends Paid

7. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

8. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Accounts Payable $ 82,400 $ 74,000 $ 8,400 +
Accrued Expenses , ,
Dividends Payable , , ,700 +
Common Stock , , ,000 +
Paid In excess of Par , , ,000 +
Retained Earnings , , ,400 +
$766,600 $546,400
Additional Information:
(d) The common stock was issued for cash.
(e) There was a $73,600 debit to Retained Earnings for cash dividends declared.
(f) There was a $132,000 credit to Retained Earnings for net income.
Hint: Start with Net Income at top and then Cash at the end of the year!

9. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: $
Deduct: $
______ ______
Net cash flows from operating activities $

10. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

11. STATEMENT OF CASH FLOWS FORM
Cash flows from Financing Activities:
Add: $______ $
Deduct: $______
______
Net cash flows from financing activities _______
Increase or decrease in cash
Cash at the beginning of the year _______
Cash at the end of the year
$35,600
57,800
$93,400

12. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

13. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: $
Deduct: Increase in trade receivable $ 1,500
______ ______
Net cash flows from operating activities $

14. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

15. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: $
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
______ ______
Net cash flows from operating activities $

16. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

17. STATEMENT OF CASH FLOWS FORM
Cash flows from Investing Activities:
Add: Sales of investments $ 95,000
$95,000
Deduct: $
_______ ______
Net cash flows from investing activities

18. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: $
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
Gain on sale of investments ,000 (69,100)
Net cash flows from operating activities $

19. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

20. STATEMENT OF CASH FLOWS FORM
Cash flows from Investing Activities:
Add: Sales of investments $ 95,000
$ 95,000
Deduct: Purchase of land $145,000
Purchase of equipment ,000 (234,000)
Net cash flows from investing activities
(139,000)

21. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Cash $ 93,400 $ 57,800 $35,600 +
Trade receivables (net) , , ,500 +
Inventories , , ,600 +
Investments , ,000 -
Land , ,000 +
Equipment , , ,000 +
Accumulated depreciation (110,900) (87,400) 23,500 +
$766,600 $546,400
Additional Information:
(a) Equipment and land were acquired for cash.
(b) There were no disposals of equipment during the year.
(c) The investments were sold for $95,000 cash.

22. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: Depreciation Expense ,500 $
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
Gain on sale of investments , (69,100)
Net cash flows from operating activities $

23. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Accounts Payable $ 82,400 $ 74,000 $ 8,400 +
Accrued Expenses , ,
Dividends Payable , , ,700 +
Common Stock , , ,000 +
Paid In excess of Par , , ,000 +
Retained Earnings , , ,400 +
$766,600 $546,400
Additional Information:
(d) The common stock was issued for cash.
(e) There was a $73,600 debit to Retained Earnings for cash dividends declared.
(f) There was a $132,000 credit to Retained Earnings for net income.

24. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: Depreciation Expense ,500
Increase in accounts payable ,400 $
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
Gain on sale of investments , (69,100)
Net cash flows from operating activities $

25. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Accounts Payable $ 82,400 $ 74,000 $ 8,400 +
Accrued Expenses , ,
Dividends Payable , , ,700 +
Common Stock , , ,000 +
Paid In excess of Par , , ,000 +
Retained Earnings , , ,400 +
$766,600 $546,400
Additional Information:
(d) The common stock was issued for cash.
(e) There was a $73,600 debit to Retained Earnings for cash dividends declared.
(f) There was a $132,000 credit to Retained Earnings for net income.

26. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: Depreciation Expense ,500
Increase in accounts payable ,400
Increase in accrued expenses
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
Gain on sale of investments , (69,100)
Net cash flows from operating activities $

27. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net Income $132,000
Add: Depreciation Expense ,500
Increase in accounts payable ,400
Increase in accrued expenses
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
Gain on sale of investments , (69,100)
Net cash flows from operating activities
$164,600
$ 95,500

28. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Accounts Payable $ 82,400 $ 74,000 $ 8,400 +
Accrued Expenses , ,
Dividends Payable , , ,700 +
Common Stock , , ,000 +
Paid In excess of Par , , ,000 +
Retained Earnings , , ,400 +
$766,600 $546,400
Additional Information:
(d) The common stock was issued for cash.
(e) There was a $73,600 debit to Retained Earnings for cash dividends declared.
(f) There was a $132,000 credit to Retained Earnings for net income.
Declared $73,600 less increase in payable $2,700 = $70,900

29. STATEMENT OF CASH FLOWS FORM
Cash flows from Financing Activities:
Add: $______ $
Deduct: Cash paid for dividends $ 70,900
(70,900)
Net cash flows from financing activities _______
Increase or decrease in cash $ 35,600
Cash at the beginning of the year ,800
Cash at the end of the year $ 93,400

30. MONOPOLY COMPANY
The Comparative Balance Sheets of the Monopoly Company for December 31 of the current year and the preceding year is as follows:
Current Preceding
Year Year Change
Accounts Payable $ 82,400 $ 74,000 $ 8,400 +
Accrued Expenses , ,
Dividends Payable , , ,700 +
Common Stock , , ,000 +
Paid In excess of Par , , ,000 +
Retained Earnings , , ,400 +
$766,600 $546,400
Additional Information:
(d) The common stock was issued for cash.
(e) There was a $73,600 debit to Retained Earnings for cash dividends declared.
(f) There was a $132,000 credit to Retained Earnings for net income.

31. STATEMENT OF CASH FLOWS FORM
Cash flows from Financing Activities:
Add: Sale of common stock $150,000
$150,000
Deduct: Cash paid for dividends $ 70,900
(70,900)
Net cash flows from financing activities _______
Increase or decrease in cash $35,600
Cash at the beginning of the year ,800
Cash at the end of the year $93,400
79,100

32. STATEMENT OF CASH FLOWS FORM
Cash flows from Operating Activities:
Net cash flows from operating activities $ 95,500
Cash flows from Investing Activities:
Net cash flows from investing activities (139,000)
Cash flows from Financing Activities:
Net cash flows from financing activities ,100
Increase or decrease in cash $35,600
Cash at the beginning of the year ,800
Cash at the end of the year $93,400

33. End Accounting II Cash flows from Operating Activities:
Net Income $132,000
Add: Depreciation ,500
Increase in accounts payable ,400
Increase in accrued expenses $164,600
Deduct: Increase in trade receivable $ 1,500
Increase in inventories ,600
Gain on sale of investments ,000 (69,100)
Net cash flows from operating activities $ 95,500
Cash flows from Investing Activities:
Add: Sales of investments $ 95,000
$ 95,000
Deduct: Purchase of land $145,000
Purchase of equipment ,000 (234,000)
Net cash flows from investing activities (139,000)
Cash flows from Financing Activities:
Add: Sale of common stock $150,000
$150,000
Deduct: Cash paid for dividends $70,900
(70,900)
Net cash flows from financing activities ,100
Increase or decrease in cash $ 35,600
Cash at the beginning of the year ,800
Cash at the end of the year $ 93,400
End Accounting II

34. Accounting 2 Exam Information
EXAM #5 – Statement of Cash Flow
Objective Questions 2 = 30
Problem #1 Statement of Cash Flows 35
Problem #2 17-4B to be turned in with your final 35
Total