1. The Statement of Cash Flows
Chapter 14
Exercises

2. Preparing the Statement of Cash Flows
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)

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

4. Statement of Cash Flows – Indirect Method
Exercise E14-21:
Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, 2015.
Minerals Plus, Inc. Comparative Balance Sheets
Assets Cash………………………………… $ 30,000 $ 8,000 Accounts receivable…………… , ,000 Merchandise Inventory…..……… , ,000 Plant assets……..………………… 199, ,000 Accum. Depreciation….………… , ,000 Land………………………………… , ,000 Total Assets………………………. $393,000 $320,000 Liabilities & Equity Accounts Payable……………….. $ 30,000 $ 17,000 Accrued liabilities……………… , ,000 Notes payable (long-term)……… , ,000 Common Stock……………….… , ,000 Retained earnings……………… , ,000 Total liabilities and equity………. $393,000 $320,000
Minerals Plus, Inc. Income Statement
Sales revenue………… $235,000 Cost of goods sold… ,000 Gross profit…………… $138,000 Operating Expenses: Depreciation……… $26,000 Salaries Expense ,000 Total Expenses… ,000 Income before taxes……….. $ 55, Income taxes expense… ,000
Net income……………… $ 51,000

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

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

7. Statement of Cash Flows – Indirect Method

8. Statement of Cash Flows – Indirect Method

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

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

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

21. Statement of Cash Flows – Indirect Method

22. Statement of Cash Flows – Indirect Method

23. Statement of Cash Flows – Indirect Method

24. Statement of Cash Flows – Indirect Method
End of Exercise