The Statement of
Cash Flows
Chapter 14
Exercises
Preparing the Statement of Cash Flows
• In-Class Exercise (Form groups and work exercise):
Exercise No.
E14-21
Page
856
Cash Flows StatementIndirect Method
(Use the schedule format, as reflected on the next slide,
to begin the exercise)
Statement of Cash Flows – Indirect Method
Use this format for the schedule
Exercise
E14-21
Page
856
Cash Flow Statement
Statement of Cash Flows – Indirect Method
Exercise E14-21:
Use the following financial statements and additional information to prepare a
statement of cash flows for the year ended September 30, 2015.
Minerals Plus, Inc.
Income Statement
Sales revenue…………
$235,000
Cost of goods sold….
-97,000
Gross profit……………
$138,000
Operating Expenses:
Depreciation……… $26,000
Salaries Expense... 57,000
Total Expenses…..
-83,000
Income before taxes……….. $ 55,000
Income taxes expense….
-4,000
Net income………………..
$ 51,000
Minerals Plus, Inc.
Comparative Balance Sheets
Assets
2015
2014
Cash………………………………… $ 30,000 $ 8,000
Accounts receivable……………..
41,000
59,000
Merchandise Inventory…..……… 97,000
93,000
Plant assets……..………………… 199,000
80,000
Accum. Depreciation….…………. -46,000 -20,000
Land………………………………… 72,000 100,000
Total Assets………………………. $393,000 $320,000
Liabilities & Equity
Accounts Payable……………….. $ 30,000 $ 17,000
Accrued liabilities………………..
11,000
24,000
Notes payable (long-term)………
19,000
18,000
Common Stock……………….…..
39,000
10,000
Retained earnings……………….. 294,000 251,000
Total liabilities and equity………. $393,000 $320,000
Statement of Cash Flows – Indirect Method
Exercise E14-21:
Additional Information:
a.
Acquisition of plant assets is $119,000. Of this amount,
$100,000 is paid in cash and $19,000 by signing a not
payable.
b.
Cash receipt from sale of land totals $28,000. There is no
gain or loss.
c.
Cash receipts from issuance of common stock total $29,000.
d.
Payment of note payable is $18,000.
e.
Payment of dividends is $8,000.
Statement of Cash Flows – Indirect Method
Preparing the Schedule for the Statement of
Cash Flows
Statement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect Method
Preparing the Statement of Cash Flows
Cash Flows from Operating Activities
(Textbook Format)
Statement of Cash Flows – Indirect Method
Textbook Format
From Income Statement
Statement of Cash Flows – Indirect Method
Textbook Format
From Income Statement
Statement of Cash Flows – Indirect Method
Textbook Format
From
Schedule
Statement of Cash Flows – Indirect Method
Textbook Format
Statement of Cash Flows – Indirect Method
Preparing the Statement of Cash Flows
Cash Flows from Operating Activities
(Alternate Format)
Statement of Cash Flows – Indirect Method
Alternate Format
From Income Statement
Statement of Cash Flows – Indirect Method
Alternate Format
Statement of Cash Flows – Indirect Method
Alternate Format
From Schedule
Statement of Cash Flows – Indirect Method
Alternate Format
From Schedule
Statement of Cash Flows – Indirect Method
Alternate Format
Statement of Cash Flows – Indirect Method
Preparing the Statement of Cash Flows
Cash Flows from Investing and Financing
Statement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect Method
Statement of Cash Flows – Indirect Method
End of Exercise