ACCT20100 Chapter Notes - Chapter 12: Cash Flow, Income Statement
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Cash Flows from OperatingActivities | |
Net loss | $ (2,240,578) |
Adjustments to reconcile netloss to net cash used in operating activities: | |
Depreciation andamortization | 1,636,003 |
Stock-based compensation | 466,760 |
Amortization of debt discountsand issuance costs | 91,037 |
Inventory write-downs | 131,665 |
Loss on disposals of fixedassets | 105,770 |
Foreign currency transactionlosses (gains) | 52,309 |
Loss (gain) related toSolarCity acquisition | 57,746 |
Non-cash interest and otheroperating activities | 135,237 |
Changes in operating assetsand liabilities, net of effect of business combinations: | |
Accounts receivable | (24,635) |
Inventories | (178,850) |
Operating lease vehicles | (1,522,573) |
Prepaid expenses and othercurrent assets | (72,084) |
MyPower customer notesreceivable and other assets | (15,453) |
Accounts payable and accruedliabilities | 388,206 |
Deferred revenue | 468,902 |
Customer deposits | 170,027 |
Resale value guarantee | 208,718 |
Other long-termliabilities | 81,139 |
Net cash used in operatingactivities | (60,654) |
Cash Flows from InvestingActivities | |
Purchases of property andequipment excluding capital leases, net of sales | (3,414,814) |
Maturities of short-termmarketable securities | |
Purchases of solar energysystems, leased and to be leased | (666,540) |
Increases in restrictedcash | (223,090) |
Business combinations, net ofcash acquired | (114,523) |
Net cash used in investingactivities | (4,418,967) |
Cash Flows from FinancingActivities | |
Proceeds from issuances ofcommon stock in public offerings | 400,175 |
Proceeds from issuances ofconvertible and other debt | 7,138,055 |
Repayments of convertible andother debt | (3,995,484) |
Repayments of borrowings underSolar Bonds issued to related parties | (165,000) |
Collateralized leaseborrowings | 511,321 |
Proceeds from exercises ofstock options and other stock issuances | 259,116 |
Principal payments on capitalleases | (103,304) |
Common stock and debt issuancecosts | (63,111) |
Purchases of convertible notehedges | (204,102) |
Proceeds from settlements ofconvertible note hedges | 287,213 |
Proceeds from issuances ofwarrants | 52,883 |
Proceeds from issuance ofcommon stock in private placement | |
Payments for settlements ofwarrants | (230,385) |
Proceeds from investments bynoncontrolling interests in subsidiaries | 789,704 |
Distributions paid tononcontrolling interests in subsidiaries | (261,844) |
Payments for buy-outs ofnoncontrolling interests in subsidiaries | (373) |
Net cash provided by financingactivities | 4,414,864 |
Effect of exchange ratechanges on cash and cash equivalents | 39,455 |
Net (decrease) increase incash and cash equivalents | (25,302) |
Cash and cash equivalents,beginning of period | 3,393,216 |
Cash and cash equivalents, endof period | 3,367,914 |
Supplemental Non-CashInvesting and Financing Activities | |
Shares issued in connectionwith business combinations and assumed vested awards | 10,528 |
Acquisitions of property andequipment included in liabilities | 914,108 |
Estimated fair value offacilities under build-to-suit leases | 313,483 |
Supplemental Disclosures | |
Cash paid during the periodfor interest, net of amounts capitalized | 182,571 |
Cash paid during the periodfor taxes, net of refunds | $ 65,695 |
Cash Flows for 2017: |
Is the total cash flow positive ornegative? |
Operating Activities: |
Is the total cash flow positive ornegative? |
What is the biggest source of cash? |
What is the biggest use of cash? |
Investing Activities: |
Is the total cash flow positive ornegative? |
What is the biggest source of cash? |
What is the biggest use of cash? |
Financing Activities: |
Is the total cash flow positive ornegative? |
What is the biggest source of cash? |
What is the biggest use of cash? |
The comparative balance sheet of Canace Products Inc. forDecember 31, 2016 and 2015, is shown as follows:
1 | Dec. 31, 2016 | Dec. 31, 2015 | |
2 | Assets | ||
3 | Cash | $643,460.00 | $679,530.00 |
4 | Accounts receivable (net) | 566,490.00 | 548,320.00 |
5 | Inventories | 1,010,720.00 | 982,600.00 |
6 | Investments | 0.00 | 240,910.00 |
7 | Land | 519,510.00 | 0.00 |
8 | Equipment | 879,710.00 | 680,990.00 |
9 | Accumulated depreciation-equipment | (243,750.00) | (200,970.00) |
10 | Total assets | $3,376,140.00 | $2,931,380.00 |
11 | Liabilities and Stockholdersâ Equity | ||
12 | Accounts payable (merchandise creditors) | $772,290.00 | $748,770.00 |
13 | Accrued expenses payable (operating expenses) | 63,970.00 | 69,800.00 |
14 | Dividends payable | 8,000.00 | 7,040.00 |
15 | Common stock, $2 par | 56,000.00 | 32,000.00 |
16 | Paid-in capital: Excess of issue price over parâcommon stock | 408,000.00 | 192,000.00 |
17 | Retained earnings | 2,067,880.00 | 1,881,770.00 |
18 | Total liabilities and stockholdersâ equity | $3,376,140.00 | $2,931,380.00 |
The income statement for the year ended December 31, 2016, is asfollows:
1 | Sales | $5,974,620.00 | |
2 | Cost of merchandise sold | 2,451,470.00 | |
3 | Gross profit | $3,523,150.00 | |
4 | Operating expenses: | ||
5 | Depreciation expense | $42,780.00 | |
6 | Other operating expenses | 3,099,440.00 | |
7 | Total operating expenses | 3,142,220.00 | |
8 | Operating income | $380,930.00 | |
9 | Other expense: | ||
10 | Loss on sale of investments | (64,890.00) | |
11 | Income before income tax | $316,040.00 | |
12 | Income tax expense | 102,160.00 | |
13 | Net income | $213,880.00 |
Additional data obtained from an examination of the accounts inthe ledger for 2016 are as follows:
A. | Equipment and land were acquired for cash. |
B. | There were no disposals of equipment during the year. |
C. | The investments were sold for $176,020 cash |
D. | The common stock was issued for cash. |
E. | There was a $27,770 debit to Retained Earnings for cashdividends declared. |
Prepare a statement of cash flows, using the direct method ofpresenting cash flows from operating activities. Be sure tocomplete the heading of the statement. Refer to the Labels andAmount Descriptions list provided for the exact wording of theanswer choices for text entries. Use the minus sign only toindicate the net cash outflows for each section. âDeductâ, âLessâor colons (:) will automatically appear if required.
Labels and Amount Descriptions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cash paid for dividends | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for purchase of equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for purchase of land | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for purchase of treasury stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash payments for income taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash payments for merchandise | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash payments for operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received from customers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received from sale of common stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received from sale of investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in cash | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in cash | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisition of land | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for purchase of equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on sale of investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow from financing activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow from investing activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow from operating activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow used for financing activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow used for investing activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash flow used for operating activities Prepare a statement of cash flows, using the direct method ofpresenting cash flows from operating activities. Be sure tocomplete the heading of the statement. Refer to the Labels andAmount Descriptions list provided for the exact wording of theanswer choices for text entries. Use the minus sign only toindicate the net cash outflows for each section. âDeductâ, âLessâor colons (:) will automatically appear if required.
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