CHAPTER 13 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Exercises Do It Exercises Problems Problems Brief A B 1 2 6 15 3 4 5 6 7 8 9 16 22 1 2 3 1 2 3 1A 1B 10 11 12 13 14 4 5 6 7 4 5 6 7 8 9 2A 3A 5A 7A 9A 11A 2B 3B 5B 7B 9B 11B 8 9 10 11 3 7A 8A 7B 8B 1 2 7 9 10 17 12 12A 1 2 3 4 5 6 Indicate the usefulness of the statement of cash flows Distinguish among operating investing and financing activities Prepare a statement of cash flows using the indirect method Analyze the statement of cash flows Explain how to use a worksheet to prepare the statement of cash flows using the indirect method Prepare a statement of cash flows using the direct method 8 18 19 20 21 13 14 15 11 12 13 14 4A 6A 8A 10A 4B 6B 8B 10B Note All asterisked Questions Exercises and Problems relate to material contained in the appendix to the chapter 13 1 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted min Simple 10 15 Distinguish among operating investing and financing activities Determine cash flow effects of changes in equity accounts Prepare the operating activities section indirect method Prepare the operating activities section direct method Prepare the operating activities section indirect method Prepare the operating activities section direct method Simple Simple Simple Simple Simple Prepare a statement of cash flows indirect method and compute free cash flow Moderate Prepare a statement of cash flows direct method and compute free cash flow Moderate 40 50 9A Prepare a statement of cash flows indirect method Prepare a statement of cash flows direct method Prepare a statement of cash flows indirect method Prepare a worksheet indirect method Distinguish among operating investing and financing activities Moderate Moderate Moderate Moderate Simple Determine cash flow effects of changes in plant asset accounts Simple 10 15 Prepare the operating activities section indirect method Prepare the operating activities section direct method Prepare the operating activities section indirect method Prepare the operating activities section direct method Simple Simple Simple Simple Prepare a statement of cash flows indirect method and compute free cash flow Moderate 10 15 20 30 20 30 20 30 20 30 40 50 40 50 40 50 40 50 40 50 10 15 20 30 20 30 20 30 20 30 40 50 1A 2A 3A 4A 5A 6A 7A 8A 10A 11A 12A 1B 2B 3B 4B 5B 6B 7B 13 2 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only ASSIGNMENT CHARACTERISTICS TABLE Continued Problem Number 8B Description Prepare a statement of cash flows direct method and compute free cash flow 9B Prepare a statement of cash flows indirect method 10B 11B Prepare a statement of cash flows direct method Prepare a statement of cash flows indirect method Difficulty Level Moderate Moderate Moderate Moderate Time Allotted min 40 50 40 50 40 50 40 50 13 3 Copyright 2012 John Wiley Sons Inc Weygandt Managerial Accounting 6 e Solutions Manual For Instructor Use Only B L O O M S T A X O N O M Y T A B L E Correlation Chart between Bloom s Taxonomy Learning Objectives and End of Chapter Exercises and Problems Knowledge Comprehension Q13 6 Q13 15 Application Analysis Synthesis Evaluation Learning Objective 1 Indicate the usefulness of the statement of cash flows 2 Distinguish among operating investing and financing activities Q13 4 Q13 6 Q13 22 BE13 1 3 Prepare a statement of cash Q13 13 flows using the indirect method 4 Analyze the statement of cash flows 5 Explain how to use a worksheet to prepare the statement of cash flows using the indirect method 6 Prepare a statement of cash Q13 18 flows using the direct method Broadening Your Perspective Q13 1 Q13 2 Q13 3 Q13 5 Q13 7 Q13 8 Q13 9 Q13 16 Q13 10 Q13 11 Q13 12 Q13 14 Q13 17 Q13 8 Q13 20 Q13 21 BYP13 3 BYP13 4 BE13 3 E13 2 E13 3 BE13 2 DI13 1 E13 1 E13 2 P13 1A P13 1B BE13 4 BE13 5 BE13 6 DI13 2 E13 4 E13 5 E13 7 E13 7 E13 9 P13 7A P13 8A P13 7B BE13 12 E13 10 P13 12A Q13 19 BE13 13 BE13 14 BE13 15 E13 11 E13 12 BYP13 5 BYP13 6 BYP13 9 E13 8 E13 9 P13 3A P13 5A P13 7A P13 9A P13 11A P13 3B P13 5B P13 7B P13 9B P13 11B BE13 7 E13 6 P13 2A P13 2B P13 7A P13 7B P13 8B BE13 8 BE13 9 BE13 10 BE13 11 DI13 3 P13 7A P13 8A P13 7B P13 8B P13 8A P13 8B P13 4B P13 6B P13 8B P13 10B E13 13 E13 14 P13 4A P13 6A P13 8A P13 10A BYP13 1 BYP13 2 BYP13 7 BYP13 8 1 3 4 C o p y r i g h t 2 0 1 2 i l J o h n W e y S o n s I n c W e y g a n d t M a n a g e r i a l A c c o u n t i n g 6 e S o u l t i o n s M a n u a l F o r I n s t r u c t o r U s e O n y l ANSWERS TO QUESTIONS 1 2 3 4 5 6 a The statement of cash flows reports the cash receipts cash payments and net change in cash resulting from the operating investing and financing activities of a company during a period b Disagree The statement of cash flows is required It is the fourth basic financial statement The statement of cash flows answers the following questions about cash a Where did the cash come from during the period b What was the cash used for during the period and c What was the change in the cash balance during the period The three types of activities are Operating activities include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income Investing activities include a acquiring and disposing of investments and property plant and equipment and b lending money and collecting loans Financing activities include a obtaining cash from issuing debt and repaying amounts borrowed and b obtaining cash from stockholders repurchasing shares and paying dividends a Major inflows of cash in a statement of cash flows include cash from operations issuance of debt collection of loans issuance of capital stock sale of investments and the sale of property plant and equipment b Major outflows of cash include purchase of inventory payment of wages and other operating expenses payment of cash dividends redemption of debt purchase …