ACCO 230 Study Guide - Final Guide: Deferral, Current Liability, Net Income

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chocolatebeaver389

22 Feb 2018

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How to prepare a statement of cash flows: determine the net change in cash during the period: Determine the net change in each current asset and current liability account (except for the. Cash and the dividends payable accounts) and record the impact that these changes had on cash. Less: gain on sale of property plant & equipment ppe. Add: decrease in current asset (except cash account) Less: increase in current asset (except cash account) Add: increase in current liabilities (except dividends payables) Less: decrease in current liabilities (except dividends payables) Net cash provided by operating activities: cash flows from investing activities. Determine and record the cash proceeds received from selling property, plant, and equipment and the cost of property, plant, and equipment purchased with cash during the period. Equipment that had originally cost ,000 and had a net carrying amount of ,000 was sold for ,900 during the year.

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Income Balance Statement of Statement of
Item Statement Sheet Cash Flows Owner's Equity

Notes payable
Beginning common stock
Service revenue
Utility expense
Cash from stock issue
Operating activities
For the period ended (date)
Net income
Investing activities
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Identify Where Each Item is Located on the Financial Statements Identify the financial statements on which each of the following items (titles, date descriptions, and accounts) appears by placing a bold and centered

âXâ in the proper column. If an item appears on more than one statement, place anotherâ Xâ in every correct column.

azurecrocodile958

E12-12 Inferring Balance Sheet Changes from the Cash FlowStatement (Indirect Method) [LO 12-2]

A statement of cash flows contained the followinginformation:

Operating Activities
Net Income	$	14,013
Depreciation		1,027
Changes in CurrentAssets and Current Liabilities
Accounts Receivable		(2,142	)
Inventory		596
Accounts Payable		6,307
Accrued Liabilities		(1,217	)

Net CashProvided by Operations	$	18,584

Required:

For each of the four current asset and liability accounts listedin the operating activities section of the statement of cash flows,determine whether the following accounts increased or decreasedduring the period:

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

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ACCO 230 Study Guide - Final Guide: Deferral, Current Liability, Net Income

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