ACCT1006 Lecture Notes - Lecture 11: Accrual, Cash Flow, Net Profit
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The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014:
Cash Book Summary | |||
Opening balance | $20,000 | Accounts Payable | $40,000 |
Accounts receivable | 100,000 | Bills Payable (suppliers) | 20,000 |
Bills Receivable (suppliers) | 20,000 | Interest paid | 60,000 |
Debenture Issue | 400,000 | Operating expenses | 180,000 |
Dividends received | 20,000 | Salaries & wages | 200,000 |
Interest received | 40,000 | Current tax payable | 80,000 |
Motor vehicles | 60,000 | Plant & machinery | 100,000 |
Share capital | 200,000 | Dividend paid | 120,000 |
Balance c/d | 60,000 | ||
860,000 | 860,000 | ||
Balance b/d | 60,000 |
Required:
(a) Net cash used in operating activities; (b) Net cash used in investing activities; (c) Net cash from financing activities;
(d) Net increase/(decrease) in cash and cash equivalents.
Please use the following format
Statement of Cash Flows for Blackbeard Company | ||
For the Financial Year Ended 30 June 2014 | ||
( i ) Cash flows from Operating Activities | Inflows/ | Inflows/ |
(Outflows) | (Outflows) | |
Net cash used in operating activities | ||
( ii ) Cash flows from Investing Activities | ||
Net cash used in Investing Activities | ||
( iii ) Cash flows from Financing Activities | ||
Natalie Daniels has completed the basic format to be used inpreparing the statement of cash flows (indirect method) for CPUHardware Designers. All amounts are in thousands (000s). |
CPU HARDWARE DESIGNERS Statement of Cash Flows For the year ended December 31, 2015 | ||
Cash Flows fromOperating Activities | ||
Netincome | ||
Adjustments for noncash effects: | ||
Changesin current assets and current liabilities: | ||
Net cash flows from operatingactivities | ||
Cash Flows fromInvesting Activities | ||
Netcash flows from investing activities | ||
Cash Flows fromFinancing Activities | ||
Net cash flows from financingactivities | ||
Net increase(decrease) in cash | $ | (28,000) |
Cash at thebeginning of the period | 90,000 | |
Cash at the end ofthe period | $ | 62,000 |
Below, in random order, are line items to be included in thestatement of cash flows. |
Cash received fromthe sale of land | $ 4,000 |
Issuance of commonstock | 300,000 |
Depreciationexpense | 30,000 |
Increase in accountsreceivable | 70,000 |
Increase in accountspayable | 11,000 |
Loss on sale ofland | 8,000 |
Purchase ofequipment | 230,000 |
Increase ininventory | 40,000 |
Increase in prepaidrent | 11,000 |
Payment ofdividends | 50,000 |
Net income | 80,000 |
Repayment of notespayable | 60,000 |
Required: |
Prepare the statement of cash flows for CPU Hardware Designersusing the indirect method. (List cash outflows and any decrease in cashas negative amounts. Enter your answers inthousands.) |
CPU HARDWARE DESIGNERS | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 2015 | ||
Cash Flows from Operating Activities: | ||
Adjustments to reconcile net income to net cash flows fromoperating activities | ||
Net cash flows from operating activities | $0 | |
Cash Flows from Investing Activities: | ||
Net cash flows from investing activities | 0 | |
Cash Flows from Financing Activities: | ||
Net cash flows from financing activities | 0 | |
Cash at the beginning of the period | ||
Cash at the end of the period | $0 |
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014 and 2013, is shown as follows:
Dec. 31, 2014 | Dec. 31, 2013 | ||||
Assets | |||||
Cash | $246,880 | $232,300 | |||
Accounts receivable (net) | 89,440 | 83,430 | |||
Inventories | 252,460 | 247,030 | |||
Investments | 0 | 95,700 | |||
Land | 129,500 | 0 | |||
Equipment | 278,560 | 218,400 | |||
Accumulated depreciation-equipment | (65,210) | (58,890) | |||
Total | $931,630 | $817,970 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $168,630 | $161,140 | |||
Accrued expenses payable (operating expenses) | 16,770 | 21,270 | |||
Dividends payable | 9,320 | 7,360 | |||
Common stock, $10 par | 50,310 | 40,080 | |||
Paid-in capital in excess of par-common stock | 189,120 | 111,240 | |||
Retained earnings | 497,480 | 476,880 | |||
Total | $931,630 | $817,970 |
The following additional information was taken from the records:
The investments were sold for $111,970 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $59,040 credit to Retained Earnings for net income.
There was a $38,440 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.
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