B) In preparation for developing its statement of cash flows forthe year ended December 31, 2014, Tim Taylor Company collected thefollowing information:
($ in millions)
Payment for the early extinguishment of long-term notes
(book value $100 million) $107
Sale of common shares 325
Retirement of common shares 214
Loss on sale of equipment 4
Proceeds from sale of equipment 16
Issuance of short-term note payable for cash 18
Acquisition of building for cash 17
Purchase of marketable securities (not a cash equivalent) 10
Purchase of marketable securities (considered a cash equivalent)2
Cash payment for 3-year insurance policy 6
Collection of note receivable with interest (principal amount,$23) 26
Declaration of cash dividends 66
Distribution of cash dividends declared in 2013 58
Required:
1. In Taylor's statement of cash flows, what were net cashinflows (or outflows) from investing activities for 2014?
2. In Taylorâs statement of cash flows, what were net cashinflows (or outflows) from financing activities for 2014?
B) In preparation for developing its statement of cash flows forthe year ended December 31, 2014, Tim Taylor Company collected thefollowing information:
($ in millions)
Payment for the early extinguishment of long-term notes
(book value $100 million) $107
Sale of common shares 325
Retirement of common shares 214
Loss on sale of equipment 4
Proceeds from sale of equipment 16
Issuance of short-term note payable for cash 18
Acquisition of building for cash 17
Purchase of marketable securities (not a cash equivalent) 10
Purchase of marketable securities (considered a cash equivalent)2
Cash payment for 3-year insurance policy 6
Collection of note receivable with interest (principal amount,$23) 26
Declaration of cash dividends 66
Distribution of cash dividends declared in 2013 58
Required:
1. In Taylor's statement of cash flows, what were net cashinflows (or outflows) from investing activities for 2014?
2. In Taylorâs statement of cash flows, what were net cashinflows (or outflows) from financing activities for 2014?
Related questions
| In preparation for developing itsstatement of cash flows for the year just ended, D-RoseDistributors collected the following information: |
| ($ inmillions) | |
| Purchase of treasurybills (considered a cash equivalent) | 6.1 |
| Sale of preferredstock | 150.1 |
| Gain on sale ofland | 4.1 |
| Proceeds from sale ofland | 25.1 |
| Issuance of bondspayable for cash | 140.1 |
| Purchase of equipmentfor cash | 30.1 |
| Purchase of GEstock | 35.1 |
| Declaration of cashdividends | 134.1 |
| Payment of cashdividends declared in previous year | 130.1 |
| Purchase of treasurystock | 120.1 |
| Payment for the earlyextinguishment of | |
| long-termnotes (carrying (book) value: $100 million) | 110.1 |
| Required: | |
| 1. | In D-Roseâs statement of cash flows, what were net cash inflows(or outflows) from investing activities? (List any cashoutflow with a minus sign. Enter your answer in millions rounded to1 decimal place (i.e., 5,500,000 should be entered as5.5).) |
| 2. | In D-Roseâs statement of cash flows, what were net cash inflows(or outflows) from financing activities? (List any cashoutflow with a minus sign. Enter your answer in millions rounded to1 decimal place (i.e., 5,500,000 should be entered as5.5).) |
Erroneous Statement of Cash Flows
Ryan Company's bookkeeper prepared the following 2016 statement of cash flows:
| Flows of Cash Statement December 31, 2016 | |||
| Sources (Inflows) of Cash | |||
| Net Source from Operations | |||
| Net income | $47,800 | ||
| Add: Cash receipt from sale of land | 6,500 | ||
| Inflow from issuing 10% bonds payable | 25,000 | ||
| Depreciation expense | 13,200 | ||
| Reduction in inventory | 1,900 | ||
| Less: Outflow to buy equipment | (16,400) | ||
| Increase in prepaid expenses | (700) | ||
| Cash (principal) paid on long-term note | (9,500) | ||
| ordinary gain | (2,000) | ||
| Total source from operations | $65,800 | ||
| Other Sources (Inflows) of Cash | |||
| Loss on sale of land | $2,300 | ||
| Increase in accounts payable | 1,000 | ||
| Cash from issuing preferred stock | 38,700 | ||
| Patent amortization expense | 2,100 | ||
| Total other sources of cash | 44,100 | ||
| Sources (Financing) Not Affecting Cash | |||
| Issuance of common stock for patent | 11,000 | ||
| Total inflows of cash | $120,900 | ||
| Uses (Outflows) of Cash | |||
| To purchase building | $(62,000) | ||
| Increase in accounts receivable | (7,800) | ||
| For acquiring marketable securities | (7,100) | ||
| Decrease in income taxes payable | (1,400) | ||
| Total uses of cash | (78,300) | ||
| Uses (Investing) Not Affecting Cash | |||
| Acquisition of patent by issuing common stock | (11,000) | ||
| Net inflow before dividends | $ 31,600 | ||
| Less: Cash dividends | (24,000) | ||
| Net increase in cash | $7,600 | ||
| Cash, January 1, 2016 | 15,300 | ||
| Cash, December 31, 2016 | $22,900 | ||
After a thorough investigation, you have determined that the amounts of the items listed on the statement are correct. However, you notice several items that are incorrectly classified and reported.
Required
Prepare a corrected 2016 statement of cash flows for the Ryan Company. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
Operating Activities
________________ __________
Adjustment for non cash income items:
________________ __________
________________ __________
________________ __________
________________ __________
Adjustments for cash flow effects from working capital items:
________________ __________
________________ __________
________________ __________
________________ __________
________________ __________
Net cash provided by operating activities ____________
Investing Activities:
________________ __________
________________ __________
________________ __________
________________ __________
Net cash used for investing activities _________
Financing Activities:
________________ __________
________________ __________
________________ __________
________________ __________
Net cash provided by financing activies _________
Net increase in cash _________
Cash, january 1, 2016 _________
Cash, december 31, 2016 _________
Investing and Financing Activities not Affecting Cash
Investing Activities:
Acquistion of patent by issuing commons stock ______________
Financing Activities:
Issuance of common stock for patent ____________
