1378 Chapter 23 Statement of Cash Flows Instructions Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash tows for the following items (a) Payments for purchase of property, plant, and equipment. (b) Proceeds from the sale of equipment. tc) Cash dividends paid. id) Redemption of bonds payable E23-11 (LO2) (SCF-Indirect Method) Condensed financial data of Pat Metheny Company for 2017 and 2016 are presented below PAT METHENY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 $1800 1750 1600 1900 (1,200) 1300 Cash $1.150 1300 Receivables Inventory Plant assets 1900 1,700 (1.170 1,420 >20 Accumulated depreciation Long-term investments (held-to-maturity) +20 $7.150 S6,300 Accounts payable Accrued liabilities Bonds payable Common stock Retained eamings 5 900 250 1,530 1.700 1,900 $1,200 200 1400 1900 2450 $7.150 S6,300 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold $6,900 4.700 2.200 930 Gross margin Selling and administrative expense Income from operations Other revenues and gains Gain on sale of investments. 1.270 -gam 80 Income before tax 1,350 Income tax expense 540 Net income Cash dividends 810 260 Income retained in business $ 550 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017 Instructions Prepare a statement of cash flows using the indirect method. E23-12 (LO2) (SCF-Direct Method) Data for Pat Metheny Company are presented in E23-11. Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) 23-13 (LO2,3) (SCF-Direct Method) Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017 Exercises 1379 BRECKER INC COMPARATIVE BALANCE SHEn As Or DECEMBER 31, 2017 AND 201- 12/31/17 Cash Accounts receivable Short-term debt investments (available-oesale Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights 12/31/16 s 6000 5 7.000 SLO00 62,000 35,000 40,000 18,000 60000 5,000 154,000 4.000 130,000 (35000 (25.000) 50,000 40000 Total assets $313.000 $295,000 Accounts payable Income tases payable Salaries and wages pavable Short-term loans payable Long-term loans payable Common shok, $10 par Contributed capital, common stock Retained eamings 5 46.000 000 8.000 8000 s 40,000 6.000 4000 t0000 69000 60.00 100000 30,000 100.000 30000 36.000 5700 Total liabilities and stockholders' equity $313.000 $295,000 BRECKER INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 5338.150 175.000 Sales revenue Cost of goods sold 163150 Gross profit Operating expenses 120,000 43,150 Operating income Interest expense Gain on sale of equipment $11 400 2000 9,400 33750 6.750 Income before tax Income tax expense s 27,000 Net income Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) E23-14 (L02) (SCF-Indirect Method) Data for Brecker Inc. are presented in E23-13 Instructions Prepare a statement of cash flows using the indirect method. E23-15 (LO2) (SCF-Indirect Method) The following data are taken from the records of Alee Company. December 31, December 31, 2017 2016 $ 15.000 85,000 10,000 335,000 S 8.000 Cash Current assets other than cash Long-term debt investments Plant assets 60,000 53.000 215,000 $445,000 $336,000 1378 Chapter 23 Statement of Cash Flows Instructions Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash tows for the following items (a) Payments for purchase of property, plant, and equipment. (b) Proceeds from the sale of equipment. tc) Cash dividends paid. id) Redemption of bonds payable E23-11 (LO2) (SCF-Indirect Method) Condensed financial data of Pat Metheny Company for 2017 and 2016 are presented below PAT METHENY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 $1800 1750 1600 1900 (1,200) 1300 Cash $1.150 1300 Receivables Inventory Plant assets 1900 1,700 (1.170 1,420 >20 Accumulated depreciation Long-term investments (held-to-maturity) +20 $7.150 S6,300 Accounts payable Accrued liabilities Bonds payable Common stock Retained eamings 5 900 250 1,530 1.700 1,900 $1,200 200 1400 1900 2450 $7.150 S6,300 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold $6,900 4.700 2.200 930 Gross margin Selling and administrative expense Income from operations Other revenues and gains Gain on sale of investments. 1.270 -gam 80 Income before tax 1,350 Income tax expense 540 Net income Cash dividends 810 260 Income retained in business $ 550 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017 Instructions Prepare a statement of cash flows using the indirect method. E23-12 (LO2) (SCF-Direct Method) Data for Pat Metheny Company are presented in E23-11. Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) 23-13 (LO2,3) (SCF-Direct Method) Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017 Exercises 1379 BRECKER INC COMPARATIVE BALANCE SHEn As Or DECEMBER 31, 2017 AND 201- 12/31/17 Cash Accounts receivable Short-term debt investments (available-oesale Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights 12/31/16 s 6000 5 7.000 SLO00 62,000 35,000 40,000 18,000 60000 5,000 154,000 4.000 130,000 (35000 (25.000) 50,000 40000 Total assets $313.000 $295,000 Accounts payable Income tases payable Salaries and wages pavable Short-term loans payable Long-term loans payable Common shok, $10 par Contributed capital, common stock Retained eamings 5 46.000 000 8.000 8000 s 40,000 6.000 4000 t0000 69000 60.00 100000 30,000 100.000 30000 36.000 5700 Total liabilities and stockholders' equity $313.000 $295,000 BRECKER INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 5338.150 175.000 Sales revenue Cost of goods sold 163150 Gross profit Operating expenses 120,000 43,150 Operating income Interest expense Gain on sale of equipment $11 400 2000 9,400 33750 6.750 Income before tax Income tax expense s 27,000 Net income Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have occurred on the investments during the year 4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017 Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) E23-14 (L02) (SCF-Indirect Method) Data for Brecker Inc. are presented in E23-13 Instructions Prepare a statement of cash flows using the indirect method. E23-15 (LO2) (SCF-Indirect Method) The following data are taken from the records of Alee Company. December 31, December 31, 2017 2016 $ 15.000 85,000 10,000 335,000 S 8.000 Cash Current assets other than cash Long-term debt investments Plant assets 60,000 53.000 215,000 $445,000 $336,000