NU ACCT 1201 - Chapter 12. Statement of Cash Flows

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Chapter 12. Statement of Cash Flows1. Reebok International Ltd. is a global company that designs and markets sports and fitness products, including footwear,apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presentedusing the!indirect method!are listed here. Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.) 1. Dividends paid.2. Repayments of long-term debt.3. Depreciation and amortization.4. Proceeds from issuance of common stock to employees.5. [Change in] Accounts payable and accrued expenses.6. Cash collections from customers.7. Net repayments of notes payable to banks.8. Net income.9. Payments to acquire property and equipment.10. [Change in] Inventory.2. Hewlett-Packard is a leading manufacturer of computer equipment for the business and home markets. For each of the following recent transactions, indicate whether!net cash inflows (outflows)!from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow (+) or outflow (–). (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows!if and only if!the account Cash is affected.)!(Select "NE" if there is no effect.)11.2.3.4.5.6.7.8.9.10.3. The following information pertains to Peak Heights CompanyPresent the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method.PEAK HEIGHTS COMPANYStatement of Cash Flows (Partial)Cash flows from operating activities:4. Time Warner Inc. is a leading media and entertainment company with businesses in television networks, filmed entertainment, and publishing. The company’s 2011 annual report contained the following information (dollars in millions):Based on this information, compute cash flow from operating activities using the indirect methodTIME WARNER INC COMPANYStatement of Cash Flows (Partial)Cash flows from operating activities:25. Oering’s Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities:OERING'S FURNITURE CORPORATIONStatement of Cash Flows (Partial)Cash flows from investing activities:36. Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:Additional Data:a.Bought equipment for cash, $48,900.b.Paid $14,700 on the long-term note payable.c.Issued new shares of stock for $38,050 cash.d.Dividends of $650 were declared and paid.e.Other expenses all relate to wages.f.Accounts payable includes only inventory purchases made on credit. Prepare the statement of cash flows using the indirect method for the year ended December 31, 2015SHARP SCREEN FILMS, INC.Statement of Cash FlowsFor the Year Ended December 31, 2015Cash flows from operating activities:Adjustments to reconcile net income to net cash provided by operating activities:Net cash provided by operating activitiesCash flows from financing activities:47. XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are completeexcept for the statement of cash flows. The completed comparative balance sheets and income statement aresummarized: Additional data:a. Bought equipment for cash, $31,000.!Sold equipment with original cost of $10,000, accumulated depreciation of $7,000, for $4,000 cash.b. Paid $6,000 on the long-term note payable.c. Issued new shares of stock for $16,000 cash.d. No dividends were declared or paid.e.Other expenses included depreciation, $12,000; wages, $13,000; taxes, $6,000; and other, $7,800.f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method.!XS SUPPLY COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2014Cash flows from operating activities:Adjustments to reconcile net income to net cash provided by operating activities:Cash flows from investing activities:Net cash used in investing activities5Chapter 12. Statement of Cash Flows1. Reebok International Ltd. is a global company that designs and markets sports and fitness products, including footwear,apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presentedusing the!indirect method!are listed here. Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.) 1. Dividends paid. F2. Repayments of long-term debt. F3. Depreciation and amortization. O4. Proceeds from issuance of common stock to employees.F5. [Change in] Accounts payable and accrued expenses.O6. Cash collections from customers. NA7. Net repayments of notes payable to banks. F8. Net income. O9. Payments to acquire property and equipment. I10. [Change in] Inventory. O2. Hewlett-Packard is a leading manufacturer of computer equipment for the business and home markets. For each of the following recent transactions, indicate whether!net cash inflows (outflows)!from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow (+) or outflow (–). (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows!if and only if!the account Cash is affected.)!(Select "NE" if there is no effect.)3. The following information pertains to Peak Heights CompanyPresent the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method.PEAK HEIGHTS COMPANYStatement of Cash Flows (Partial)61. Purchased raw materials inventory on account. NE2. Prepaid rent for the following period. – NCFO3. Purchased new equipment by signing a three-year note.NE4.


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NU ACCT 1201 - Chapter 12. Statement of Cash Flows

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