Complete "Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow" in chapter 14 of Managerial Accounting. Present your responses in an Excel spreadsheet.

Net cash provided by operating activies

The following equation can be applied to the Accumulated Depreciation account to compute

the depreciation to add back to net income

Formula = Beginning balance - Debits + Credits = Ending balance

Beginning Balance

-

Debits

+

Credits

=

Ending Balance

-

+

-

+

Credits

=

Credits

=

-

$ -

+

$ -

Credits

=

$ -

Follow the guidelines from Exhibit 14-2 to analyze the changes in non-cash balance sheet accounts that impact net income Show as positive or negative as applicable to the results.

Description

Increase in Account Balance

Decrease in Account Balance

Current Assets

Accounts Receivable

Inventory

Prepaid Expenses

Current Liabilities

Accounts Payable

Accrued Liabilities

Income Taxes Payable

The net cash provided by operating activities is computed as follows (note: the gain on sale of equipment is subtracted from net income)

Description

Net Income

Adjustments to convert net income to cash basis:

Depreciation

$ -

Increase in Accounts Receivable

$ -

Increase in Inventory

$ -

Decrease in Prepaid Expenses

$ -

Increase in Accounts Payable

$ -

Decrease in Accrued Liabilities

$ -

Increase in Income Taxes Payable

$ -

Gain on Sale of Equipment

$ -

Net Cash provided by Operating Activities

$ -

Prepare a statement of Cash Flows

Before doing this, you must figure the following activities first

Investing and Financing Activites:

The guidelines from Exhibit 14-3 can be used to analyze the changes in non-cash balance sheet that impact investing and financing cash flowsShow as positive or negative as applicable to the results.

Description

Increase in Account Balance

Decrease in Account Balance

Non-Current Assets

Property, Plant, and Equipment

Loan to Harker Company

Liabilities and Stockholder's Equity

Bonds Payable

Common Stock

Property, Plant, and Equipment:

Formula = Beginning balance - Debits + Credits = Ending balance

Beginning Balance

+

Debits

-

Credits

=

Ending Balance

-

+

+

Debits

-

=

Debits

=

$ -

-

$ -

+

$ -

Debits

=

$ -

Retained Earnings:

Formula = Beginning balance - Debits + Credits = Ending balance

Beginning Balance

-

Debits

+

Credits

=

Ending Balance

-

+

-

Debits

+

=

Debits

=

$ -

-

$ -

-

$ -

Debits

=

$ -

Joyner Company

Statement of Cash Flows

For Year 2

Description

Operating Activities:

Net Income

$ -

Adjustments to convert net income to cash basis:

Depreciation

$ -

Increase in Accounts Receivable

$ -

Increase in Inventory

$ -

Decrease in Prepaid Expenses

$ -

Increase in Accounts Payable

$ -

Decrease in Accrued Liabilities

$ -

Increase in Income Taxes Payable

$ -

Gain on Sale of Equipment

$ -

$ -

Net Cash provided by Operating Activities

$ -

Investing Activities:

Proceeds from sale of equipment

Loan to Harker Company

$ -

Additions to Plant and Equipment

$ -

Net Cash used in Investing Activities

$ -

Financing Activities:

Issuance of Bonds Payable

$ -

Issuance of Common Stock

$ -

Cash Dividends

$ -

Net Cash provided by Financing Activities

$ -

Net decrease in cash

$ -

Cash balance, beginning of year

Cash balance,end of year

$ -

** be sure in input properly - if negative number, put in as a negative number

Free cash flow computation

Description

Net Cash provided by Operating Activities

$ -

Capital expenditures

$ -

Dividends

$ -

$ -

Free Cash Flow

$ -