Connect

Close
Skip to eBook contentSkip to Chapter linksSkip to Content links for this ChapterSkip to eBook links

Chapter21: The Statement of Cash Flows Revisited

Problems

p. 1244

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/820130/Connect_Accounting_CMYK.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (38.0K)</a>

An alternate exercise and problem set is available on the text website: www.mhhe.com/spiceland6e

P 21-1

 

Classification of cash flows from investing and financing activities

 

  LO2 LO5 through LO7

Listed below are transactions that might be reported as investing and/or financing activities on a statement of cash flows. Possible reporting classifications of those transactions are provided also.

Required:

Indicate the reporting classification of each transaction by entering the appropriate classification code.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1244_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

P 21-2

 

Statement of cash flows; direct method

 

  LO3 LO8

The comparative balance sheets for 2011 and 2010 and the statement of income for 2011 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/excel-icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1244_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

p. 1245

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1245_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Additional information from the accounting records:

a.

 

Land that originally cost $10,000 was sold for $7,000.

b.

 

The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent.

c.

 

New equipment was purchased for $150,000 cash.

d.

 

A $30,000 note was paid at maturity on January 1.

e.

 

On January 1, 2011, $60,000 of bonds were sold at face value.

f.

 

Common stock ($50,000 par) was sold for $76,000.

g.

 

Net income was $80,000 and cash dividends of $35,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)

P 21-3

 

Statement of cash flows; direct method

 

  LO3 LO8

The comparative balance sheets for 2011 and 2010 and the statement of income for 2011 are given below for National Intercable Company. Additional information from NIC's accounting records is provided also.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1245_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

p. 1246

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1246_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Additional information from the accounting records:

a.

 

During 2011, $5 million of customer accounts were written off as uncollectible.

b.

 

Investment revenue includes National Intercable Company's $6 million share of the net income of Central Fiber Optics Corporation, an equity method investee.

c.

 

A long-term investment in bonds, originally purchased for $30 million, was sold for $35 million.

d.

 

Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million.

e.

 

A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by a tornado. Some undamaged parts were sold for $3 million.

f.

 

A building was acquired by a seven-year capital lease; present value of lease payments, $80 million.

g.

 

$130 million of bonds were retired at maturity.

h.

 

$20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par.

i.

 

Shareholders were paid cash dividends of $30 million.

Required:

1.

 

Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2011.

2.

 

Prepare the statement of cash flows. (A reconciliation schedule is not required.)

p. 1247

P 21-4

 

Statement of cash flows; direct method

 

  LO3 LO8

The comparative balance sheets for 2011 and 2010 and the statement of income for 2011 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/excel-icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1247_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Additional information from the accounting records:

a.

 

A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.

b.

 

The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.

c.

 

Property was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.

d.

 

New equipment was purchased for $15,000 cash.

e.

 

On January 1, 2011, $25,000 of bonds were sold at face value.

f.

 

On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.

g.

 

Cash dividends of $13,000 were paid to shareholders.

h.

 

On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.

p. 1248

Required:

Prepare the statement of cash flows of Dux Company for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)

P 21-5

 

Statement of cash flows; direct method

 

  LO3 LO8

Comparative balance sheets for 2011 and 2010 and a statement of income for 2011 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/excel-icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a><a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1248_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Additional information from the accounting records:

a.

 

During 2011, equipment with a cost of $300,000 (90% depreciated) was sold.

b.

 

The statement of shareholders' equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively.

Required:

Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)

p. 1249

P 21-6

 

Cash flows from operating activities (direct method) derived from an income statement and cash flows from operating activities (indirect method)

 

  LO3 LO4

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in millions) for Mike Roe Computers.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1249_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

1.

 

Calculate each of the following amounts for Mike Roe Computers:

a.

 

Cash received from customers during the reporting period.

b.

 

Cash paid to suppliers of goods during the reporting period.

c.

 

Cash paid to employees during the reporting period.

d.

 

Cash paid for interest during the reporting period.

e.

 

Cash paid for insurance during the reporting period.

f.

 

Cash paid for income taxes during the reporting period.

2.

 

Prepare the cash flows from operating activities section of the statement of cash flows (direct method).

P 21-7

 

Cash flows from operating activities (direct method) derived from an income statement and cash flows from operating activities (indirect method)

 

  LO3 LO4

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1249_3.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the cash flows from operating activities section of the statement of cash flows (direct method).

p. 1250

P 21-8

 

Cash flows from operating activities (direct method and indirect method)—deferred income tax liability and amortization of bond discount

 

  LO3 LO4

Portions of the financial statements for Parnell Company are provided below.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1250_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

1.

 

Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method.

2.

 

Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the indirect method.

P 21-9

 

Cash flows from operating activities (direct method and indirect method)—extraordinary loss

 

  LO3 LO4

Portions of the financial statements for Hawkeye Company are provided below.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1250_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

p. 1251

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1251_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

1.

 

Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method.

2.

 

Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method.

P 21-10

 

Relationship between the income statement and cash flows from operating activities (direct method and indirect method)

 

  LO3 LO4

The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods, in the format illustrated by Graphic 21-10 in the chapter. Some elements necessary to complete the schedule are missing.

Cash Flows from Operating Activities
Income Statement
Indirect Method
Direct Method
Net income
 $  ?
Adjustments:
Sales
$300
Decrease in accounts receivable
6
Cash received from customers
$ ?
Gain on sale of equipment
24
Gain on sale of equipment
(24)
(Not reported—no cash effect)
Increase in inventory
(12)
Cost of goods sold
(?)
Increase in accounts payable
18
Cash paid to suppliers
(174)
Salaries expense
(39)
? in salaries payable
6
Cash paid to employees
(33)
Depreciation expense
(9)
Depreciation expense
9
Cash paid for depreciation
?
Bad debt expense
(3)
Bad debt expense
3
(Not reported—no cash effect)
Interest expense
(?)
Decrease in bond discount
3
Cash paid for interest
(9)
Insurance expense
(21)
Decrease in prepaid insurance
9
Cash paid for insurance
(?)
Loss on sale of land
(6)
Loss on sale of land
6
(Not reported—no cash effect)
Income tax expense
(27)

Increase in income tax payable
 ?

Cash paid for income taxes
(21)

Net Income
$ ?
Net cash flows from operating activities
$ 57
Net cash flows from operating activities
$ 57

Required:

Complete the schedule by determining each of the following missing elements:

1.

 

Cash received from customers

2.

 

Cost of goods sold

3.

 

? in salaries payable (Increase? or decrease?)

4.

 

Cash paid for depreciation

5.

 

Interest expense

6.

 

Cash paid for insurance

7.

 

Increase in income tax payable

8.

 

Net income

p. 1252

P 21-11

 

Prepare a statement of cash flows; direct method

 

  LO3 LO8

The comparative balance sheets for 2011 and 2010 and the income statement for 2011 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1252_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Additional information from the accounting records:

a.

 

During 2011, $6 million of customer accounts were written off as uncollectible.

b.

 

Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee.

p. 1253

c.

 

Treasury bills were sold during 2011 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

d.

 

A machine originally costing $70 million that was one-half depreciated was rendered unusable by a rare flood. Most major components of the machine were unharmed and were sold for $17 million.

e.

 

Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $3 million.

f.

 

The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.

g.

 

Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.

h.

 

A building was acquired by a 15-year capital lease; present value of lease payments, $82 million.

i.

 

$60 million of bonds were retired at maturity.

j.

 

In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.

k.

 

In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.

Required:

Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (A reconciliation schedule is not required.)

P 21-12

 

Transactions affecting retained earnings

 

  LO5 LO6 LO8

Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2011. At January 1, 2011, the corporation had outstanding 105 million common shares, $1 par per share.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1253_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

1.

 

From the information provided by the account changes you should be able to re-create the transactions that affected Brenner-Jude's retained earnings during 2011. Reconstruct the journal entries which can be used as spreadsheet entries in the preparation of a statement of cash flows. Also indicate any investing and financing activities you identify from this analysis that should be reported on the statement of cash flows.

2.

 

Prepare a statement of retained earnings for Brenner-Jude for the year ended 2011. (You may wish to compare your solution to this problem with the parallel situation described in Exercise 18-18.)

P 21-13

 

Various cash flows

 

  LO3 through LO8

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2011 and 2010, and the increases or decreases in each account from 2010 to 2011. Also presented is selected income statement information for the year ended December 31, 2011, and additional information.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1253_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

p. 1254

Additional information:

a.

 

Accounts receivable relate to sales of merchandise.

b.

 

During 2011, equipment costing $40,000 was sold for cash.

c.

 

During 2011, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required:

Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2011. The following two responses are required for each item:

 

Determine the amount that should be reported in Del Conte's 2011 statement of cash flows.

 

Using the list below, determine the category in which the amount should be reported in the statement of cash flows.

  

O. Operating activity

  

I. Investing activity

  

F. Financing activity

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1254_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

P 21-14

 

Statement of cash flows; indirect method; limited information

 

  LO4 LO8

The comparative balance sheets for 2011 and 2010 are given below for Surmise Company. Net income for 2011 was $50 million.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1254_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2011. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful.

p. 1255

P 21-15

 

Integrating problem; bonds; lease transactions; lessee and lessor; statement of cash flow effects

 

  LO3 LO5 LO6

Digital Telephony issued 10% bonds, dated January 1, with a face amount of $32 million on January 1, 2011. The bonds mature in 2021 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Digital recorded the issue as follows:

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/1255_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

   Digital also leased switching equipment to Midsouth Communications, Inc., on September 30, 2011. Digital purchased the equipment from MDS Corp. at a cost of $6 million. The five-year lease agreement calls for Midsouth to make quarterly lease payments of $391,548, payable each September 30, December 31, March 31, and June 30, with the first payment on September 30, 2011. Digital's implicit interest rate is 12%.

Required:

1.

 

What would be the amount(s) related to the bonds that Digital would report in its statement of cash flows for the year ended December 31, 2011, if Digital uses the direct method? The indirect method?

2.

 

What would be the amounts related to the lease that Midsouth would report in its statement of cash flows for the year ended December 31, 2011?

3.

 

What would be the amounts related to the lease that Digital would report in its statement of cash flows for the year ended December 31, 2011?

4.

 

Assume MDS manufactured the equipment at a cost of $5 million and that Midsouth leased the equipment directly from MDS. What would be the amounts related to the lease that MDS would report in its statement of cash flows for the year ended December 31, 2011?

P 21-16

 

Statement of cash flows; indirect method

 

  LO4 LO8

Refer to the data provided in Problem 21-4 for Dux Company.

Required:

Prepare the statement of cash flows for Dux Company using the indirect method.

P 21-17

 

Statement of cash flows; indirect method

 

  LO4 LO8

Refer to the data provided in Problem 21-5 for Metagrobolize Industries.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the statement of cash flows for Metagrobolize Industries using the indirect method.

P 21-18

 

Statement of cash flows; indirect method

 

  LO4 LO8

Refer to the data provided in Problem 21-11 for Arduous Company.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/excel-icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>
<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the statement of cash flows for Arduous Company using the indirect method.

   (Note: The following problems use the technique learned in Appendix 21B.)

P 21-19

 

Statement of cash flows; T-account method

 

  LO3 LO8

Refer to the data provided in Problem 21-4 for Dux Company.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis.

P 21-20

 

Statement of cash flows; T-account method

 

  LO3 LO8

Refer to the data provided in Problem 21-5 for Metagrobolize Industries.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the statement of cash flows for Metagrobolize Industries. Use the T-account method to assist in your analysis.

p. 1256

P 21-21

 

Statement of cash flows; T-account method

 

  LO3 LO8

Refer to the data provided in Problem 21-11 for Arduous Company.

 <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/premium/0077328787/student/star_icon.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>

Required:

Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis.

2011 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.