Intermediate Accounting 13th edition Kieso Weygandt Warfield Chapter 23 Statement of Cash Flows. I have attached 3 questions and cut and pasted them here too. The following accounts increased during 2011: accounts receivable $12,000; inventory $11,000; accounts payable $13,000. Complete the cash flows from operating activities section of Bloom's 2011 statement of cash flows using the indirect method. Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. If no entry is required enter "No Entry" for the account and 0 for the amount.) (a) Net income is $317,000. (b) Cash dividends declared and paid totaled $120,000. (c) Equipment was purchased for $114,000. (d) Equipment that originally cost $40,000 and had accumulated depreciation of $32,000 was sold for $10,000. Preparation of Operating Activities Section-Direct Method)
Intermediate Accounting 13th edition Kieso Weygandt Warfield Chapter 23 Statement of Cash Flows Question one Bloom Corporation had the following 2010 income statement. Sales $200,000 120,000 Cost of goods sold Gross profit 80,000 Operating expense (including depreciation of 50,000 $21,000) $30,000 Net income The following accounts increased during 2011: accounts receivable $12,000; inventory $11,000; accounts payable $13,000. Complete the cash flows from operating activities section of Bloom's 2011 statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.) Cash flow from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities: $ Net cash by operating activities $ Question two Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. If no entry is required enter "No Entry" for the account and 0 for the amount.) (a) Net income is $317,000. (b) Cash dividends declared and paid totaled $120,000. (c) Equipment was purchased for $114,000. (d) Equipment that originally cost $40,000 and had accumulated depreciation of $32,000 was sold for $10,000. Description Debit Credit (a) $ $ (b) $ $ (c) $ $ (d) $ $ $ $ Question three (Preparation of Operating Activities Section-Direct Method) Norman Company's income statement for the year ended December 31, 2010, contained the following condensed information. Revenue from fees Operating expenses (excl. depreciation) Depreciation expense Loss on sale of equipment $840,000 $624,000 60,000 26,000 710,000 Income before taxes Income tax expense 130,000 40,000 $90,000 Net income Norman's balance sheet contained the following comparative data at December 31. 2010 2009 Accounts $37,000 $59,000 receivable Accounts payable 46,000 31,000 Income taxes 4,000 8,500 payable (Accounts payable pertains to operating expenses.) Instructions Complete the operating activities section of the statement of cash flows using the direct method. (Enter all amounts as positive and subtract where necessary. List amounts from largest to smallest eg 10, 5, 3, 2.) NORMAN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities $ $ Net cash by operating activities $ Question two Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. If no entry is required enter "No Entry" for the account and 0 for the amount.) (a) Net income is $317,000. (b) Cash dividends declared and paid totaled $120,000. (c) Equipment was purchased for $114,000. (d) Equipment that originally cost $40,000 and had accumulated depreciation of $32,000 was sold for $10,000. Description Debit Credit (a) $ $ (b) $ $ (c) $ $ (d) $ $ Equipment $ 40000 $ 2000 Question two Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. If no entry is required enter "No Entry" for the account and 0 for the amount.) (a) Net income is $317,000. (b) Cash dividends declared and paid totaled $120,000. (c) Equipment was purchased for $114,000. (d) Equipment that originally cost $40,000 and had accumulated depreciation of $32,000 was sold for $10,000. Description Debit Credit (a) $ $ (b) $ $ (c) $ $ (d) $ $ Equipment $ 40000 $ 2000 Question two Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the statement of cash flows. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. If no entry is required enter "No Entry" for the account and 0 for the amount.) (a) Net income is $317,000. (b) Cash dividends declared and paid totaled $120,000. (c) Equipment was purchased for $114,000. (d) Equipment that originally cost $40,000 and had accumulated depreciation of $32,000 was sold for $10,000. Description Debit Credit (a) $ $ (b) $ $ (c) $ $ (d) $ $ Equipment $ 40000 $ 2000
