ACC 312 Study Guide - Midterm Guide: Cash Flow
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Natalie Daniels has completed the basic format to be used inpreparing the statement of cash flows (indirect method) for CPUHardware Designers. All amounts are in thousands (000s). |
CPU HARDWARE DESIGNERS Statement of Cash Flows For the year ended December 31, 2015 | ||
Cash Flows fromOperating Activities | ||
Netincome | ||
Adjustments for noncash effects: | ||
Changesin current assets and current liabilities: | ||
Net cash flows from operatingactivities | ||
Cash Flows fromInvesting Activities | ||
Netcash flows from investing activities | ||
Cash Flows fromFinancing Activities | ||
Net cash flows from financingactivities | ||
Net increase(decrease) in cash | $ | (28,000) |
Cash at thebeginning of the period | 90,000 | |
Cash at the end ofthe period | $ | 62,000 |
Below, in random order, are line items to be included in thestatement of cash flows. |
Cash received fromthe sale of land | $ 4,000 |
Issuance of commonstock | 300,000 |
Depreciationexpense | 30,000 |
Increase in accountsreceivable | 70,000 |
Increase in accountspayable | 11,000 |
Loss on sale ofland | 8,000 |
Purchase ofequipment | 230,000 |
Increase ininventory | 40,000 |
Increase in prepaidrent | 11,000 |
Payment ofdividends | 50,000 |
Net income | 80,000 |
Repayment of notespayable | 60,000 |
Required: |
Prepare the statement of cash flows for CPU Hardware Designersusing the indirect method. (List cash outflows and any decrease in cashas negative amounts. Enter your answers inthousands.) |
CPU HARDWARE DESIGNERS | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 2015 | ||
Cash Flows from Operating Activities: | ||
Adjustments to reconcile net income to net cash flows fromoperating activities | ||
Net cash flows from operating activities | $0 | |
Cash Flows from Investing Activities: | ||
Net cash flows from investing activities | 0 | |
Cash Flows from Financing Activities: | ||
Net cash flows from financing activities | 0 | |
Cash at the beginning of the period | ||
Cash at the end of the period | $0 |
During 2014, the Abbot Company had the following changes inaccount balances:
1) The accumulated depreciation account had a beginning balance of$25,000 and an ending balance of $35,000. The increase was due todepreciation expense.
2) The long-term notes payable account had a beginning balance of$40,000 and an ending balance of $15,000. The decrease was due torepayment of debt.
3) The accounts receivable account had a beginning balance of$60,000 and an ending balance of $50,000.
4) The equipment account had a beginning balance of $25,000 and anending balance of $92,500. The increase was due to the purchase ofequipment for cash.
5) The long term investments account (marketable securities) had abeginning balance of $18,000 and an ending balance of $12,500. Thedecrease was due to the sale of investments at cost.
6) The amount of cash dividends declared and paid during the yearwas $22,000.
7) The interest payable account had a beginning balance of $2,250and an ending balance of $1,250.
Assume that a statement of cash flows has been prepared. Thecombination of the three major components (operating activities,investing activities, financing activities) equals the:
A. | Net income for the period. | |
B. | Change in the cash account balance between the beginning and endof the period. | |
C. | Ending cash balance. | |
D. | Amount of cash inflow for the period. |