ACCT 2101 Lecture Notes - Lecture 11: Financial Statement, Income Statement, Accrual
Get access
Related Documents
Related Questions
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 | ||
Sorry about these values, this thing is kind of messed up. Ihope this can be understood.
The following is the Choco Companyâs balance sheet and incomestatement as of 12/31/2016.
Balance Sheet | 2015 | 2016 |
Cash Accounts receivable Inventory Long-term investments Total assets Liabilities and stockholdersâ equity: (no value) Accounts payable Salary payable Bonds payable Common stock Retained earnings Total liabilities and stockholdersâ equity | $ 120,000 105,000 225,000 60,000 510,000 120,000 15,000 100,000 125,000 150,000 510,000 | 21,500 195,000 180,000 -0- 396,500 75,000 24,000 70,000 125,000 102,500 396,500 |
Income statement | ||
Revenue:(no value) Sales Loss on sales of long-term investment Expenses: (no value) Cost of goods sold Salary expense Net income (loss) | 560,000 (7,500) (375,000) (180,000) (2,500) |
During 2016, following transactions were made:
Sold long-term investment for a loss of $7,500 (sold for$52,500).
$30,000 of bonds payable matured in 2016.
Paid cash dividends of $45,000.
What is the amount of cash inflow/outflow/ from their customers?(assume Sales are all credit sales)
What is the amount of cash inflow/outflow from the loss on thesales of long-term investment?
What is the amount of cash inflow/outflow from theirsuppliers?
What is the amount of cash inflow/outflow from theiremployees?
What is the amount of cash inflow/outflow from their long-terminvestment?
What is the amount of cash inflow/outflow regarding the maturityof their bonds payable?
What is the amount of cash inflow/outflow regarding the cashdividends?
Using the above balance sheet, income statement and informationfrom a to g, prepare the entire cash flow statement using thedirect method.
Choco Company Statement of Cash Flows For the year ended December 31, 2016 | |
Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities | |
Cash flows from investing activities: Net cash flows from investing activities | |
Cash flows from financing activities: Net cash flows from financing activities | |
Cash balance, 12/31/2016 |
The Murdock Corporation reported the following balance sheet data for 2016 and 2015: |
2016 | 2015 | |||||
Cash | $ | 84,035 | $ | 26,555 | ||
Available-for-sale securities (not cash equivalents) | 18,500 | 91,000 | ||||
Accounts receivable | 86,000 | 73,650 | ||||
Inventory | 171,000 | 150,400 | ||||
Prepaid insurance | 2,040 | 2,600 | ||||
Land, buildings, and equipment | 1,262,000 | 1,131,000 | ||||
Accumulated depreciation | (616,000 | ) | (578,000 | ) | ||
Total assets | $ | 1,007,575 | $ | 897,205 | ||
Accounts payable | $ | 81,740 | $ | 154,670 | ||
Salaries payable | 22,400 | 27,500 | ||||
Notes payable (current) | 30,400 | 81,000 | ||||
Bonds payable | 206,000 | 0 | ||||
Common stock | 300,000 | 300,000 | ||||
Retained earnings | 367,035 | 334,035 | ||||
Total liabilities and shareholders' equity | $ | 1,007,575 | $ | 897,205 | ||
Additional information for 2016: |
Sold available-for-sale securities costing $72,500 for $77,600. |
Equipment costing $20,000 with a book value of $5,600 was sold for $6,900. |
Issued 6% bonds payable at face value, $206,000. |
Purchased new equipment for $151,000 cash. |
Paid cash dividends of $23,000. |
Net income was $56,000. |
Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|