Mata kuliah : F0024 – Pengantar Akuntansi II
Tahun
: 2010
CH 17
STATEMENT OF CASH FLOWS
Lecture 21, 22, 23, 24
QUESTIONS
1. a. What is a statement of cash flows?
b. John Norris maintains that the statement of cash
flows is an operational financial statement. Do
you agree? Explain.
3. Distinguish among the three types of activities
reported in the statement of cash flows.
4. a. What are the major sources (inflows) of cash in a
statement of cash flows?
b. What are the major uses (outflows) of cash?
Bina Nusantara University
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QUESTIONS
10. Describe the indirect method for determining net
cash provided (used) by operating activities.
18. Describe the direct method for determining net
cash provided by operating activities.
19. Give the formulas under the direct method for
computing:
a. Cash receipts from customers
b. Cash payments to suppliers.
Bina Nusantara University
4
P17-1A
You are provided with the following transactions that
took place during a recent fiscal year.
No
Transaction
a
Recorded depreciation expense on the
b
Recorded and paid interest expense
c
Recorded cash proceeds from a sale of
d
Acquired land by issuing common stock
e
Paid a cash dividend to preferred
Bina Nusantara University
Where
on
Cash Inflow,
Outflow, or
Effect?
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P17-1A
No
Transaction
f
Distributed a stock dividend to common
g
Recorded cash sales.
h
Recorded sales on account.
i
Purchased inventory for cash.
j
Purchased inventory on account.
Bina Nusantara University
Where
on
Cash Inflow,
Outflow, or
Effect?
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P17-1A
Instructions:
Complete the table indicating whether each item
(1) should be reported as an operating (O) activity,
investing (I) activity, financing (F) activity, or as a
noncash (NC) transaction reported in a separate
schedule
(2) Represents a cash inflow or cash outflow or has
no cash flow effect. Assume use of the indirect
approach.
Bina Nusantara University
7
P17-3A
The income statement of Elbert Company is presented
here.
ELBERT COMPANY
Income Statement
For the Year Ended November 30, 2010
Sales
$ 7,700,000
Cost of Goods Sold
Beginning inventory
1,900,000
Purchases
4,400,000
Goods available for sale
6,300,000
Ending inventory
Total COGS
Gross Profit
Bina Nusantara University
(1,400,000)
4,900,000
2,800,000
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P17-3A
ELBERT COMPANY
Income Statement
For the Year Ended November 30, 2010
Gross Profit
2,800,000
Operating expenses
1,150,000
Net income
1,650,000
Additional Information:
1.Account receivable increased $250,000 during the
year, and inventory decreased $500,000.
2.Prepare expenses increased $150,000 during the year
Bina Nusantara University
9
P17-3A
3. Account payable to suppliers of merchandise
decreased $340,000 during the year.
4. Accrued expense payable decreased $100,000
during the year.
5. Operating expenses include depreciation expense
of $90,000.
Instructions:
Prepare the operating activities section of the
statement of cash flows for the year ended
November 30, 2010, for Elbert Company, using the
indirect method.
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Bina Nusantara University
P17-4A
Data for Elbert Company are presented in P17-3A.
Instructions:
Prepare the operating activities section of
statement of cash flows using the direct metod.
Bina Nusantara University
the
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