The Statement of Cash Flows
Chapter 14
Exercises
• In-Class Exercise (Form groups and work exercise):
Exercise No. Page E14-21 856 Cash Flows Statement- Indirect Method
• In-Class Exercise (Form groups and work exercise):
Exercise No. Page E14-21 856 Cash Flows Statement- Indirect Method
(Use the schedule format, as reflected on the next slide, to begin the exercise)
Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
ExerciseExercise PagePage E14-21 856 Cash Flow StatementE14-21 856 Cash Flow Statement
ExerciseExercise PagePage E14-21 856 Cash Flow StatementE14-21 856 Cash Flow Statement
Use this format for the scheduleUse this format for the schedule
Exercise E14-21Exercise E14-21::
Use the following financial statements and additional information to prepare a Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, 2015.statement of cash flows for the year ended September 30, 2015.
Exercise E14-21Exercise E14-21::
Use the following financial statements and additional information to prepare a Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, 2015.statement of cash flows for the year ended September 30, 2015.
Minerals Plus, Inc.Income Statement
Sales revenue………… $235,000Cost of goods sold…. -97,000Gross profit…………… $138,000
Operating Expenses: Depreciation……… $26,000 Salaries Expense... 57,000 Total Expenses….. -83,000Income before taxes……….. $ 55,000 Income taxes expense…. -4,000
Net income……………….. $ 51,000
Minerals Plus, Inc.Comparative Balance Sheets
Assets 2015 2014Cash………………………………… $ 30,000 $ 8,000Accounts receivable…………….. 41,000 59,000Merchandise Inventory…..……… 97,000 93,000Plant assets……..………………… 199,000 80,000Accum. Depreciation….…………. -46,000 -20,000Land………………………………… 72,000 100,000Total Assets………………………. $393,000 $320,000
Liabilities & EquityAccounts Payable……………….. $ 30,000 $ 17,000Accrued liabilities……………….. 11,000 24,000Notes payable (long-term)……… 19,000 18,000Common Stock……………….….. 39,000 10,000Retained earnings……………….. 294,000 251,000Total liabilities and equity………. $393,000 $320,000
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Exercise E14-21Exercise E14-21::
Additional InformationAdditional Information::
a.a. Acquisition of plant assets is $119,000. Of this amount, Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a note $100,000 is paid in cash and $19,000 by signing a note payable.payable.
b.b. Cash receipt from sale of land totals $28,000. There is no Cash receipt from sale of land totals $28,000. There is no gain or loss.gain or loss.
c.c. Cash receipts from issuance of common stock total $29,000.Cash receipts from issuance of common stock total $29,000.
d.d. Payment of note payable is $18,000.Payment of note payable is $18,000.
e.e. Payment of dividends is $8,000.Payment of dividends is $8,000.
Exercise E14-21Exercise E14-21::
Additional InformationAdditional Information::
a.a. Acquisition of plant assets is $119,000. Of this amount, Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a note $100,000 is paid in cash and $19,000 by signing a note payable.payable.
b.b. Cash receipt from sale of land totals $28,000. There is no Cash receipt from sale of land totals $28,000. There is no gain or loss.gain or loss.
c.c. Cash receipts from issuance of common stock total $29,000.Cash receipts from issuance of common stock total $29,000.
d.d. Payment of note payable is $18,000.Payment of note payable is $18,000.
e.e. Payment of dividends is $8,000.Payment of dividends is $8,000.
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Preparing the Schedule for the Statement of Preparing the Schedule for the Statement of Cash FlowsCash Flows
Preparing the Schedule for the Statement of Preparing the Schedule for the Statement of Cash FlowsCash Flows
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows
Cash Flows from Operating ActivitiesCash Flows from Operating Activities
(Textbook Format)(Textbook Format)
Cash Flows from Operating ActivitiesCash Flows from Operating Activities
(Textbook Format)(Textbook Format)
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Textbook FormatTextbook Format
From Income StatementFrom Income StatementFrom Income StatementFrom Income Statement
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Textbook FormatTextbook Format
From Income StatementFrom Income StatementFrom Income StatementFrom Income Statement
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Textbook FormatTextbook Format
From From ScheduleSchedule
From From ScheduleSchedule
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Textbook FormatTextbook Format
Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows
Cash Flows from Operating ActivitiesCash Flows from Operating Activities
(Alternate Format)(Alternate Format)
Cash Flows from Operating ActivitiesCash Flows from Operating Activities
(Alternate Format)(Alternate Format)
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Alternate FormatAlternate Format
From Income StatementFrom Income StatementFrom Income StatementFrom Income Statement
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Alternate FormatAlternate Format
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Alternate FormatAlternate Format
From ScheduleFrom ScheduleFrom ScheduleFrom Schedule
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Alternate FormatAlternate Format
From ScheduleFrom ScheduleFrom ScheduleFrom Schedule
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Alternate FormatAlternate Format
Preparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash FlowsPreparing the Statement of Cash Flows
Cash Flows from Investing and FinancingCash Flows from Investing and FinancingCash Flows from Investing and FinancingCash Flows from Investing and Financing
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
End of ExerciseEnd of Exercise
Statement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect MethodStatement of Cash Flows – Indirect Method
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