Cha pte r Eig htee n: Sta tem ent of Cas h
Flo ws
Ap pe nd ix 1: Ac cou nti ng Sta tem en ts
(Fill in th e Bla nk)
Dire ctio ns:
Writ e 10 cash tran sact ions that wou ld
go on the stat eme nt of cash f\ow s.
1.
Cl'/~ h.
2.
Q u-.yr,,-...e,.,.__t-::, ~ e.Aplu ~ 5
3.
5.
6.
S• ( .i-
1
(/1.._
(?l,( Y~ "-~ etvJ\•-( "\-✓~ r ruP •ll./
fc,1. l,ffY' (,{\_tts.
8.
f[;\'frv' ef\i ~
10.
I
~.J .s
f r tv'-1> ~ c:;- v~ 1.,.r4'3.
f u rCIAt< { (... y ,(: fv1?\[l•e.\-<A'::>le ~IA ' pi ~s
7.
9.
I
~;v, ._
_,.\-_6'_.:.;_l(<'___.5:::....__ _ __
4.
\
re c..~f \-_s
C t1C, 'h-' .~
(A, ( q ,...,..-1 (71'~
~ -<"° (\
(re _;../'\.
(-( l ~-- (~~
W f /"',1/\+-
O)'\ _l'V\ iflu rc,A k._
~~
< .\o(Al
Ce,.c,h
fyov v" ·, \<;~ 'Y}-
I
374
©2014
~ -'
lI
I
"
t-
~-
I
n
Ch ap te r Eighteen: St at em en t
of Cash Flows
1
Wr ite O no nc as h transac
tions tha
1.
c)f tk -~
2.
C-\.U-c~~
3.
( f\'\-O\eyte-,·
' (\(_ µJ\ Af ~) "'
Go M Q~. . ., ___) tv
"~~
) )> Ll <. ..~ ~
4.
U -{ )r r- i~
5.
c~ M..6M ~" "'- ~Y '
6.
b(A~ ~ b'~
7.
t would not go on the statem
ent of cash flows .
w
c,,A?-"
0 \c eff-5
I
I
c ~ \- \~sy(,s
8.
U, ~ I (
9.
Q
C,~ CA,\\"\Sy\_
G c ~~-y, es
r-Aur-\- ~ ~A-', on ~, ., f\¼" -~ \:>~~
)
)
)
375
©2014
7
.
I
t
Chap ter Eighte en : St ate me nt of Ca
sh
Flows
Appendix 2: Accounting St at em en
ts
{Multiple Choice)
1. Cash from the purchase of equ
ipment is what
D
Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the above
2. Cash from the sale of a bond is
what
a. Operating Activities
b. Investing Activities
(9)
Financing Activities
d. None of the above
3. Cash from rent payment is what
a. Operating Activities
!J·
Investing Activities
c. Financing Activities
d. None of the above
4. Cash from the purchase of a buildin
g is
what
a. Operating Activities
--,
.....
G/ Investing Activities
c. Financing Activities
d. None of the above
376
©2014
Chapter Eighteen: Statement of Cash Flows
5. Cash from the sale of equipment is what
a. Operating Activities
b. Investing Activities
c. Financing Activities
@ None of the above
6. Cash from issuance of preferred stock is what
a. Operating Activities
{) . Investing Activities
J
c. Financing Activities
d. None of the above
7. Cash from paying employee salaries is what
{!;) Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the above
8. Cash from paying taxes is what
a. Operating Activities
9.
Investing Activities
'{j Financing Activities
d. None of the above
377
©2014
Chapt er E.1g hteen ·· State ment of Cash Flow s
9. Cash from paying utilities is what
r;}· Operating Activities
r
b. Investing Activities
c. Financing Activities
d.
None of the above
1O. Cash from an IPO is what
a. Operating Activities
b. Investing Activities
c. Financing Activities
'ij.
None of the above
11. Cash from a dividend payment is what
a. Operating Activities
f} Investing Activities
c. Financing Activities
d. None of the above
12. The purchase of equipment with common stock is what
a. Operating Activities
~
Investing Activities
c. Financing Activities
d. None of the above
378
©2014
Ch apt er Eighteen: Sta tem ent of Cash Flows
13. Cash from an interest payment is what
a. Operating Activities
b. Investing Activities
@F ina ncin g Activities
d. None of the above
14. Cash from the purchase of land is wha t
V
Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the above
is wha t
15. Cash from issuance of commercial pap er
a. Operating Activities
b. Investing Activities
C. Financing Activities
(I
None of the above
is wha t
16. The purchase of equipment with a bond
{y Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the above
379
©20 14
Chapter E1.g hteen·· Stateme nt of Cash Flows
17. Cash from net income is what
~ Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the above
18. Cash from sales is what
C) Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the above
19. Cash from the issuance of convertible bonds is what
a. Operating Activities
b. Investing Activities
~ Financing Activities
d. None of the above
20. Cash from dividends is what
a. Operating Activities
6 )1nvesting Activities
~
c. Financing Activities
~
'-
f
d. None of the above
r:.
-
r..
{..
-
{__
/..
?.:
380
t
©2014
~
n
Chap ter Eighteen: State men t of Cash Flows
Appendix 3: Accounting Statements
(Matching)
Directions:
When using the indirect method to create the operating activities sectio
n of the
Statement of Cash Flows, individuals must identify whether increases
or decreases in
account balances should be added or subtracted to the company's net
income. In this
exercise, identify if the account balance changes should be added or
subtracted to net
income
A.
Added
B.
Subtracted
(A
1. The accounts receivable account increased by $12,000.
) /J
.?
2. The wages payable account decrease by $9,000 .
fJ\
3. The amortization account increased by $4,000.
\r,
J
- - - 4. The accounts payable account decreases by $4,740.
~ )
5. The maturity date of bonds occurred in the current accounting period
and
the bonds were sold at a loss.
~
- - - 6. The inventory account decreased by $5,120.
rA
- - - 7. The interest payable account increased by $2,092.
(]\
a. The dividends receivable account increased by $2,394.
--ff\
°"-
9. The depreciation account increased by $10,023.
10. The maturity date of bonds occurred in the current accounting period
and
the bonds were sold at a gain.
381
©2014
I
-~•.
IPIB!IW!•
V
t of Cash Fl ow s
Ch ap te r Ei gh tee n: St at em en
by $4 ,30 2.
payable account is increased
s
nd
ide
div
e
Th
.
11
-'-___D,
by $2 8.9 01 .
~
eivable account is increased
rec
st
ere
int
e
Th
.
12
_
_
__
gain.
°'-sells a building for a $2 5,1 89
- - - - 13 . Th e company
.
coun,t decreased by $4 5,9 02
"14 .,Th e unearned,income ac
b
v,. , ~
~- ii i
iii
(:;.
1-
<
v- <
_, I
~
-<
'
2,1 09 .
nce account increased by $5
ura
ins
id
pa
pre
e
Th
.
•15
_.;_
1
d by $2 9,3 0 se
rea
inc
s
CA..
ha
t
un
co
ac
nt
ale
_ _ _ _ 16 . Th e cash equiv
__°'-_
I'
I-