General Wrap Text Calibri Elad Neutral Xon copy Format Painter Clipboard BIU Merge Center $ % Normal Conditional Format as Good Formatting Table Styles IS Tent Alignment Number R112 > B B D E G 1 Statement of Cash Flows Excel Problem (50 points): 2 Use the following comparative Balance Sheets, Income Statement, and additional information to prepare the 2019 Statement of Cash Flows for Cameron Corporation 3 Use the indirect method to prepare the Operating Activities section 4 SHOW YOUR WORK for all Investing and Financing Activities. You must show your work in t-accounts and/or journal entries. 5 USE EXCEL formulas throughout and link all Statement of Cash flow numbers to the financial statements or supporting journal entries/T Accounts 6 Other Instructions 7 Your work on the take-home problem MUST represent your own work. You may NOT work with other students or seek outside help from anyone You may use your book and other course materials. 10 Proper Spelling and Formatting are required. 11 12 Additional information for 2019 transactions 13 a. All inventory is purchased on account, and the Accounts Payable account is used exclusively for inventory purchases. 15 16 b. A portion of the company land was sold for $18 million in cash. This land was originally purchased in a previous year for $10 million 17 c. land was purchased for $30 milion cash for use as a parking lot. 19 9 14 18 19 20 21 22 23 24 25 d. Equipment was sold in 2019 that had an Accumulated Depreciation balance of $7 million on the date of sale. The equipment originally cost $16 million and was sold at a loss for cash. (HINT: You must determine the amount of cash received) e. In 2019, new equipment was acquired by issuing a 12%, five year, $20 milion note payable to the seller 1. During 2019,556 million of short-term (current) notes payable were paid in cash and $43 million of cash was borrowed in the form of short-term debt (current notes The increase in the common stock account is attributed the issuance of 2 million shares for cash when the market price was $13 per share. 27 h. Cash dividends were declared and paid to shareholders. (HINT: You must determine the amount of cash dividends paid) 29 30 Sheet1 om CH 16 Excel Problem - Statement of Cash Flow Search Homo Insert Draw Page Layout Formulas Data Review View Help BE Normal Bad General $ % 9.2 Call v 12 v AA 35 Wrap Text BIU... Merge & Cemer 5 Alignment Neutral Insert Delete Format Xcut In Copy Format Painter Clipboard -12 Conditional Formatas Good Formatting table- Styles Number 1 G M N B H C Cameron Corporation Statement of Cash Flows for the year ended December 31, 2019 (Sin millions) 2018 Change Cash flows from operating activities Net income $18 17 4 $24 28 47 6 $105 3 (3) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense (3) Gain on sale of land 8 Loss on sale of equipment 12) 1 Cameron Corporation Balance Sheets December 31, 2019 and 2018 4 IS in millions) 35 2019 36 ASSETS 37 Current Assets 38 Cash $41 39 Accounts receivable 32 40 0 Inventory 50 41 0 Prepaid insurance 3 42 Total Current Assets $126 43 Property. Plant, & Equipment: GL1 Land 80 451 Equioment 81 16 Less: Accumulated depreciation (16) Total Property. Plant, & Equipment $145 48 Total Assets $271 -19 50 LIABILITIES 51 Current Liabilities Accounts payable $26 55 O Salaries payable 8 40 Income tax payable 2 Notes payable, current 34 56 Long-term abilities 57 F Notes payable, long-term 20 58 LOUITY Common stock 510 , 50 million shares authorized 12 $120 59 milion shares issued and oustanding 50 75 20 $115 $220 20 6 4 Changes in Current assets and current liabilities increase in accounts recievable (4) increase in inventory (3) decrease in prepaid insurance 3 increase in accounts payable 9 increase in salaries payable 5 decrease in income tax payable (6) $17 3 8 47 net cash provided (used) by operating at 9 5 16) (13) Cash flows from investing activities 0 20 $100 20 CH. 10 Excel Problem - Statement of Cash Flow Search le Home Insert Draw Page Layout Formulas Data Review View Help Cable General Bad Xon s copy Format Painter Cipboard wao Text Berge & Cerber BIU.a. Av $ %) Normal Conditional Formats Good Formatting Table Styles Neutral Insert Delete Font IS Alignment Cab R112 E F G H M N Increase in salaries payable decrease in income tax payable 5 (6) 517 9 5 (6) net cash provided (used) by operating ac 3 8 47 $25 1131 Cash flows from investing activities 0 20 $100 20 6 A B c D 49 50 LIABILITIES 51 Current Liabilities: $20 Accounts payable $26 53 0 Salaries payable 8 54 0 Income tax payable 2 55 F Notes payable, current 34 56 long-term Liabilities: 57 Notes payable, long-term 20 S8 EQUITY Common stock, S10 par, 50 million shares authorized, 12 $120 53 F million shares issued and Oustanding 60 Pad-in capital in excess of par-common stock 26 Retained Earnings 35 62 Total Liabilities and Equity $271 60 Cameron Corporation 65 Income Statement for the year ended December 31, 2019 GT IS in milions) 2019 69 Sales revenue $125 70 Cost of goods sold (84) 71 Gross profit 61 T2 Operating expenses Salaries expense (13) 74 Depreciation expense (3) Insurance expense 170 76 Income from operations 18 77 Other income and expenses: 78 Interest expense (2) Sheet1 20 25 $220 10 63 65 64 Cameron Corporation Income Statement 66 for the year ended December 31, 2019 67 ($ in millions) 68 2019 69 Sales revenue $125 70 Cost of goods sold (84) 71 Gross profit 41 72 Operating expenses: 73 Salaries expense (13) 74 Depreciation expense (3) 75 Insurance expense (7) 76 Income from operations 18 77 Other income and expenses: 78 Interest expense (2) 79 Gain on sale of land 8 BO Loss on sale of equipment (2) 81 Income before taxes 22 82 Income tax expense 83 Net income $18 84 BS B6 Formatting Table Clear Find & Filter Select Number Styles Cells Editing G H K M N a LAND NOTES PAYABLE SHORT TERM 47 60 80 34 EQUIPMENT NOTES PAYABLE LONG TERM 75 81 20 LESS ACCUM DEPR 20 COMMON STOCK 100 16 $120 PAID IN CAP IN EXC RETAINED EARNINGS 25 20 General Wrap Text Calibri Elad Neutral Xon copy Format Painter Clipboard BIU Merge Center $ % Normal Conditional Format as Good Formatting Table Styles IS Tent Alignment Number R112 > B B D E G 1 Statement of Cash Flows Excel Problem (50 points): 2 Use the following comparative Balance Sheets, Income Statement, and additional information to prepare the 2019 Statement of Cash Flows for Cameron Corporation 3 Use the indirect method to prepare the Operating Activities section 4 SHOW YOUR WORK for all Investing and Financing Activities. You must show your work in t-accounts and/or journal entries. 5 USE EXCEL formulas throughout and link all Statement of Cash flow numbers to the financial statements or supporting journal entries/T Accounts 6 Other Instructions 7 Your work on the take-home problem MUST represent your own work. You may NOT work with other students or seek outside help from anyone You may use your book and other course materials. 10 Proper Spelling and Formatting are required. 11 12 Additional information for 2019 transactions 13 a. All inventory is purchased on account, and the Accounts Payable account is used exclusively for inventory purchases. 15 16 b. A portion of the company land was sold for $18 million in cash. This land was originally purchased in a previous year for $10 million 17 c. land was purchased for $30 milion cash for use as a parking lot. 19 9 14 18 19 20 21 22 23 24 25 d. Equipment was sold in 2019 that had an Accumulated Depreciation balance of $7 million on the date of sale. The equipment originally cost $16 million and was sold at a loss for cash. (HINT: You must determine the amount of cash received) e. In 2019, new equipment was acquired by issuing a 12%, five year, $20 milion note payable to the seller 1. During 2019,556 million of short-term (current) notes payable were paid in cash and $43 million of cash was borrowed in the form of short-term debt (current notes The increase in the common stock account is attributed the issuance of 2 million shares for cash when the market price was $13 per share. 27 h. Cash dividends were declared and paid to shareholders. (HINT: You must determine the amount of cash dividends paid) 29 30 Sheet1 om CH 16 Excel Problem - Statement of Cash Flow Search Homo Insert Draw Page Layout Formulas Data Review View Help BE Normal Bad General $ % 9.2 Call v 12 v AA 35 Wrap Text BIU... Merge & Cemer 5 Alignment Neutral Insert Delete Format Xcut In Copy Format Painter Clipboard -12 Conditional Formatas Good Formatting table- Styles Number 1 G M N B H C Cameron Corporation Statement of Cash Flows for the year ended December 31, 2019 (Sin millions) 2018 Change Cash flows from operating activities Net income $18 17 4 $24 28 47 6 $105 3 (3) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense (3) Gain on sale of land 8 Loss on sale of equipment 12) 1 Cameron Corporation Balance Sheets December 31, 2019 and 2018 4 IS in millions) 35 2019 36 ASSETS 37 Current Assets 38 Cash $41 39 Accounts receivable 32 40 0 Inventory 50 41 0 Prepaid insurance 3 42 Total Current Assets $126 43 Property. Plant, & Equipment: GL1 Land 80 451 Equioment 81 16 Less: Accumulated depreciation (16) Total Property. Plant, & Equipment $145 48 Total Assets $271 -19 50 LIABILITIES 51 Current Liabilities Accounts payable $26 55 O Salaries payable 8 40 Income tax payable 2 Notes payable, current 34 56 Long-term abilities 57 F Notes payable, long-term 20 58 LOUITY Common stock 510 , 50 million shares authorized 12 $120 59 milion shares issued and oustanding 50 75 20 $115 $220 20 6 4 Changes in Current assets and current liabilities increase in accounts recievable (4) increase in inventory (3) decrease in prepaid insurance 3 increase in accounts payable 9 increase in salaries payable 5 decrease in income tax payable (6) $17 3 8 47 net cash provided (used) by operating at 9 5 16) (13) Cash flows from investing activities 0 20 $100 20 CH. 10 Excel Problem - Statement of Cash Flow Search le Home Insert Draw Page Layout Formulas Data Review View Help Cable General Bad Xon s copy Format Painter Cipboard wao Text Berge & Cerber BIU.a. Av $ %) Normal Conditional Formats Good Formatting Table Styles Neutral Insert Delete Font IS Alignment Cab R112 E F G H M N Increase in salaries payable decrease in income tax payable 5 (6) 517 9 5 (6) net cash provided (used) by operating ac 3 8 47 $25 1131 Cash flows from investing activities 0 20 $100 20 6 A B c D 49 50 LIABILITIES 51 Current Liabilities: $20 Accounts payable $26 53 0 Salaries payable 8 54 0 Income tax payable 2 55 F Notes payable, current 34 56 long-term Liabilities: 57 Notes payable, long-term 20 S8 EQUITY Common stock, S10 par, 50 million shares authorized, 12 $120 53 F million shares issued and Oustanding 60 Pad-in capital in excess of par-common stock 26 Retained Earnings 35 62 Total Liabilities and Equity $271 60 Cameron Corporation 65 Income Statement for the year ended December 31, 2019 GT IS in milions) 2019 69 Sales revenue $125 70 Cost of goods sold (84) 71 Gross profit 61 T2 Operating expenses Salaries expense (13) 74 Depreciation expense (3) Insurance expense 170 76 Income from operations 18 77 Other income and expenses: 78 Interest expense (2) Sheet1 20 25 $220 10 63 65 64 Cameron Corporation Income Statement 66 for the year ended December 31, 2019 67 ($ in millions) 68 2019 69 Sales revenue $125 70 Cost of goods sold (84) 71 Gross profit 41 72 Operating expenses: 73 Salaries expense (13) 74 Depreciation expense (3) 75 Insurance expense (7) 76 Income from operations 18 77 Other income and expenses: 78 Interest expense (2) 79 Gain on sale of land 8 BO Loss on sale of equipment (2) 81 Income before taxes 22 82 Income tax expense 83 Net income $18 84 BS B6 Formatting Table Clear Find & Filter Select Number Styles Cells Editing G H K M N a LAND NOTES PAYABLE SHORT TERM 47 60 80 34 EQUIPMENT NOTES PAYABLE LONG TERM 75 81 20 LESS ACCUM DEPR 20 COMMON STOCK 100 16 $120 PAID IN CAP IN EXC RETAINED EARNINGS 25 20