Dec. 31,2014 Dec. 31,2013 Assets Cash $130 $44 Accounts receivable(net) 75 55 Inventories 47 30 Land 107 125 Equipment 60 48 Accumulateddepreciation-equipment (16) (8) Total $403 $294 Liabilities andStockholders' Equity Accounts payable(merchandise creditors) $51 $44 Dividends payable 8 - Common stock, $10par 27 14 Paid-in capital inexcess of par-common stock 55 34 Retained earnings 262 202 Total $403 $294
The following additional information is taken from therecords:
Land was sold for $45.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $87 credit to Retained Earnings for net income.
There was a $27 debit to Retained Earnings for cash dividendsdeclared.
a. Prepare a statement of cash flows, using theindirect method of presenting cash flows from operating activities.Use the minus sign to indicate cash out flows, cash payments,decreases in cash and for any adjustments, if required.
Tru-Built Construction Inc.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
$
Adjustments to reconcile net income to net cash flow fromoperating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities
$
Cash flows from investing activities:
$
Net cash flow provided by investing activities
Cash flows from financing activities:
$
Net cash flow provided by financing activities
$
Cash at the beginning of the year
Cash at the end of the year
Was Tru-Built Construction Inc.'s cash flow from operations moreor less than net income? LESS OR MORE
$
| Dec. 31,2014 | Dec. 31,2013 | ||||
| Assets | |||||
| Cash | $130 | $44 | |||
| Accounts receivable(net) | 75 | 55 | |||
| Inventories | 47 | 30 | |||
| Land | 107 | 125 | |||
| Equipment | 60 | 48 | |||
| Accumulateddepreciation-equipment | (16) | (8) | |||
| Total | $403 | $294 | |||
| Liabilities andStockholders' Equity | |||||
| Accounts payable(merchandise creditors) | $51 | $44 | |||
| Dividends payable | 8 | - | |||
| Common stock, $10par | 27 | 14 | |||
| Paid-in capital inexcess of par-common stock | 55 | 34 | |||
| Retained earnings | 262 | 202 | |||
| Total | $403 | $294 | |||
The following additional information is taken from therecords:
Land was sold for $45.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $87 credit to Retained Earnings for net income.
There was a $27 debit to Retained Earnings for cash dividendsdeclared.
a. Prepare a statement of cash flows, using theindirect method of presenting cash flows from operating activities.Use the minus sign to indicate cash out flows, cash payments,decreases in cash and for any adjustments, if required.
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Related questions
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | ||||
| Assets | |||||
| Cash | $266,740 | $248,130 | |||
| Accounts receivable (net) | 96,630 | 89,120 | |||
| Inventories | 272,790 | 263,860 | |||
| Investments | 0 | 102,220 | |||
| Land | 139,910 | 0 | |||
| Equipment | 300,960 | 233,280 | |||
| Accumulated depreciationâequipment | (70,460) | (62,910) | |||
| Total assets | $1,006,570 | $873,700 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable | $182,190 | $172,120 | |||
| Accrued expenses payable | 18,120 | 22,720 | |||
| Dividends payable | 10,070 | 7,860 | |||
| Common stock, $10 par | 54,350 | 42,810 | |||
| Paid-in capital: Excess of issue price over par-common stock | 204,330 | 118,820 | |||
| Retained earnings | 537,510 | 509,370 | |||
| Total liabilities and stockholdersâ equity | $1,006,570 | $873,700 | |||
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $92,000 cash.
The common stock was issued for cash.
There was a $69,200 credit to Retained Earnings for net income.
There was a $41,060 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
| Merrick Equipment Co. | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, 20Y9 | ||
| Cash flows from operating activities: | ||
| $ | ||
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| Changes in current operating assets and liabilities: | ||
| Net cash flow from operating activities | $ | |
| Cash flows from (used for) investing activities: | ||
| $ | ||
| Net cash flow used for investing activities | ||
| Cash flows from (used for) financing activities: | ||
| Net cash flow from financing activities | ||
| $ | ||
| Cash at the beginning of the year | ||
| Cash at the end of the year | $ | |
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014 and 2013, is shown as follows:
| Dec. 31, 2014 | Dec. 31, 2013 | ||||
| Assets | |||||
| Cash | $246,880 | $232,300 | |||
| Accounts receivable (net) | 89,440 | 83,430 | |||
| Inventories | 252,460 | 247,030 | |||
| Investments | 0 | 95,700 | |||
| Land | 129,500 | 0 | |||
| Equipment | 278,560 | 218,400 | |||
| Accumulated depreciation-equipment | (65,210) | (58,890) | |||
| Total | $931,630 | $817,970 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $168,630 | $161,140 | |||
| Accrued expenses payable (operating expenses) | 16,770 | 21,270 | |||
| Dividends payable | 9,320 | 7,360 | |||
| Common stock, $10 par | 50,310 | 40,080 | |||
| Paid-in capital in excess of par-common stock | 189,120 | 111,240 | |||
| Retained earnings | 497,480 | 476,880 | |||
| Total | $931,630 | $817,970 | |||
The following additional information was taken from the records:
The investments were sold for $111,970 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $59,040 credit to Retained Earnings for net income.
There was a $38,440 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.
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