Question

B C D E Name F HT Lab #10 - Chapter 12 Statement of Cash Flows Instructions: 1. Calculate the year-over-year difference in column D, then whether the change was an "increase" or "decrease" (see Cash example). 2. Using the Indirect Method for Operating Activities, complete the Statement of Cash Flows at the bottom of the file. 5 - Additional Data: Assume all transactions are for cash unless otherwise noted. Equipment in PPE is sold for $8200 cash. No purchases of PPE are made. 0 Cost of equipment sold: 10,000 1 Accumulated depreciation on equipment sold 5,000 2 Dividends declared and paid in current year 9,300 4 Balance Sheets as of Dec. 31st Income statement Current Previous Difference Increase or Year Year Decrease? Sales Revenue Cost of goods sold Gross Margin Current Year 270,000 145,000 125,000 14,000 increase 6 Assets 7 Current Assets 8 Cash 9 Accounts Receivable 0 Interest Receivable 1 Merchandise Inventory 2 Prepaid Rent 3 Total current assets 36,000 23,000 50,000 38,000 0 65,000 12,000 165,000 100 48,000 11.000 118,100 78,000 14,000 6,200 20,000 118,200 6,800 5 Long-term Assets 6 Notes Receivable (nontrade) 7 Property, Plant & Equipment (PPE) 8 Less: Accumulated Depreciation 9 Total long-term assets Operating expenses Salaries expense Rent expense Insurance expense Depreciation expense Total expenses Income from operations Other revenue/expense Plus: Gain on sale of Equipment (PPE) Plus: interest revenue Less: Interest expense Total Net Income 0 7,500 90,000 100,000 (35,000) (20,000) 55,00087,500 3,200 200 600 2,800 9,600 1 Total Assets 220,000 205,600 3 Liabilities and Shareholder's Equity 4 Current Liabilities 5 Accounts Payable - merchandise suppliers 6 Salaries Payable 7 Unearned Revenue 8 Interest payable 9 Total current liabilities 20,000 5,800 8,100 600 34,500 18,000 2,100 12,500 200 32,800 3,700 5,500 9.200 43,700 21,300 0 21,300 54,100 1 Long-term liabilities 2 Notes Payable (due in 5 years) 3 Bonds Payable (due in 10 years) 4 Total long-term liabilities 5 Total liabilities 6 Shareholder's equity 7 Common stock $10 par 8 Additional Paid in Capital 9 Retained Earnings Total stockholder's equity 1 Total Liabilities plus stockholder's equity 64,500 100,000 11,800 176,300 220,000 50,000 90,000 11.500 151,500 205,600

Answer 1

Good Student Company Balance sheet As at Current Previous Year Year Increase Difference (Decrease) 9600 50000 38000 Assets Current Assets Cash Accounts Receivable Interest Receivable Merchandise Inventory Prepaid Rent Total Current Assets 36000 23000 100 48000 11000 118100 14000 15000 -100 17000 1000 46900 Increase Increase Decrease Increase Increase Increase Statement of Cashflow - Indirect Method For the period ending Current Year Cashflow from Operating Activity Net Income Adjustments: Depreciation Expense Gain on sale of Equipment Increase in Accounts Receivable Decrease in Interest Receivable Increase in Merchandise Inventory Increase in Prepaid Rent Increase in Accounts Payable Increase in Salaries Payable Decrease in Unearned Revenue Increase in Interest Payable Cash used for Operating Activity 65000 12000 165000 20000 -3200 - 15000 100 -17000 -1000 2000 3700 -4400 400 Long Term Assets Note Receivable (non trade) Property, Plant & Equip. Less:Accum. Depre Total Long Term Assets -14400 -4800 0 90000 -35000 55000 7500 100000 20000 87500 -7500 -10000 - 15000 -32500 Decrease Decrease Decrease Decrease Total Assets Cashflow from Investing Activity Equipment sold ( 10000 - 5000 + 3200) Note Receivable Received Cash generated from Investing Activity 8200 7500 220000 205600 14400 Increase 15700 Liabilities & Shareholders Equity Current Liabilities Accounts Payables Salaries Payable Unearned Revenue Interest Payable Total Current Liabilities 20000 5800 8100 600 34500 18000 2100 12500 200 32800 2000 3700 -4400 400 1700 Increase Increase Decrease Increase Increase Cashflow from Financing Activity Note Payable paid Bonds Issued Common Stock issued Additional Paid in Capital Dividends paid Cash generated from Financing Activity Net Increase in Cash Beginning Cash Balance Ending Cash Balance -17600 5500 14500 10000 -9300 3100 14000 36000 50000 21300 0 3700 5500 9200 43700 -17600 5500 -12100 -10400 Decrease Increase Decrease Decrease 21300 54100 Long Term Liabilities Notes Payable Bonds Payable Total Long Term Liabilities Total Liabilities Shareholders Equity Common Stock Additional Paid in Capital Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 64500 100000 11800 176300 220000 50000 90000 11500 151500 205600 14500 10000 300 24800 14400 Increase Increase Increase Increase Increase