Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Chapter 13, Problem 13.4BPR
To determine
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
To prepare: The statement of cash flows using the direct method of presenting cash flows from operating activities.
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Statement of Cash Flows—Direct Method
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
Dec. 31, 20Y6
Dec. 31, 20Y5
Assets
Cash
$277,770
$258,990
Accounts receivable (net)
100,630
93,020
Inventories
284,060
275,390
Investments
0
106,700
Land
145,700
0
Equipment
313,410
243,490
Accumulated depreciation-equipment
(73,370)
(65,660)
Total assets
$1,048,200
$911,930
Liabilities and Stockholders' Equity
Accounts payable
$189,720
$179,650
Accrued expenses payable
18,870
23,710
Dividends payable
10,480
8,210
Common stock, $10 par
56,600
44,680
Paid-in capital: Excess of issue price over par-common stock
212,780
124,020
Retained earnings
559,750
531,660
Total liabilities and stockholders’ equity
$1,048,200
$911,930
The income statement for the year ended December 31, 20Y6, is as follows:
Sales
$1,566,470
Cost of…
Statement of Cash Flows—Direct Method
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
Dec. 31, 20Y6
Dec. 31, 20Y5
Assets
Cash
$234,050
$216,220
Accounts receivable (net)
84,790
77,660
Inventories
239,340
229,910
Investments
0
89,080
Land
122,770
0
Equipment
264,080
203,280
Accumulated depreciation-equipment
(61,820)
(54,820)
Total assets
$883,210
$761,330
Liabilities and Stockholders' Equity
Accounts payable
$159,860
$149,980
Accrued expenses payable
15,900
19,790
Dividends payable
8,830
6,850
Common stock, $10 par
47,690
37,310
Excess of paid-in capital over par
179,290
103,540
Retained earnings
471,640
443,860
Total liabilities and stockholders’ equity
$883,210
$761,330
The income statement for the year ended December 31, 20Y6, is as follows:
Sales
$1,406,850
Cost of merchandise sold
579,300
Gross…
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
Dec. 31, 20Y9
Dec. 31, 20Y8
Assets
Cash
$70,720
$47,940
Accounts receivable (net)
207,230
188,190
Inventories
298,520
289,850
Investments
0
102,000
Land
295,800
0
Equipment
438,600
358,020
Accumulated depreciation—equipment
(99,110)
(84,320)
Total assets
$1,211,760
$901,680
Liabilities and Stockholders' Equity
Accounts payable
$205,700
$194,140
Accrued expenses payable
30,600
26,860
Dividends payable
25,500
20,400
Common stock, $1 par
202,000
102,000
Paid-in capital: Excess of issue price over par—common stock
354,000
204,000
Retained earnings
393,960
354,280
Total liabilities and stockholders' equity
$1,211,760
$901,680
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:…
Chapter 13 Solutions
Corporate Financial Accounting
Ch. 13 - What is the principal disadvantage of the direct...Ch. 13 - What are the major advantages of the indirect...Ch. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - If salaries payable was 100,000 at the beginning...Ch. 13 - Prob. 6DQCh. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Adjustments to net incomeindirect method Ripley...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 13.7BECh. 13 - Appendix 2 Cash received from customersdirect...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Prob. 13.1EXCh. 13 - Effect of transactions on cash flows Slate the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 13.4EXCh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Prob. 13.9EXCh. 13 - Reporting land transactions on statement of cash...Ch. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 13.12EXCh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Reporting issuance and retirement of long-term...Ch. 13 - Prob. 13.15EXCh. 13 - Prob. 13.16EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 13.19EXCh. 13 - Prob. 13.20EXCh. 13 - Prob. 13.21EXCh. 13 - Prob. 13.22EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Prob. 13.2APRCh. 13 - Prob. 13.3APRCh. 13 - Prob. 13.4APRCh. 13 - Statement of cash flows direct method applied to...Ch. 13 - Prob. 13.1BPRCh. 13 - Prob. 13.2BPRCh. 13 - Prob. 13.3BPRCh. 13 - Prob. 13.4BPRCh. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 13.1MADCh. 13 - Prob. 13.2MADCh. 13 - Analyze Aeropostale Aeropostale, Inc. (AROPQ) is a...Ch. 13 - Prob. 13.4MADCh. 13 - Prob. 13.5MADCh. 13 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 13 - Prob. 13.3TIFCh. 13 - Prob. 13.4TIF
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