Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-02 WRIGHT COMPANY Spreadsheet for the Statement of Cash Flows

Dec. 31 2010 Balance Sheet Assets: Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Acc. depreciation Liabilities: Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity: Common stock Paid-in capital - excess of par Retained earnings Changes Debits Credits Dec. 31 2011

30 75 15 70 60 400 (75) 575 35 5 3 12 30 100

12 2 25 5 10 150 40

42 73 40 75 50 550 (115) 715 28 2 5 9 160

7 3 2 3 30 60

200 100 90 575

35

50 26 80

250 126 135 715

Statement of Income Revenues: Sales revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income

380 130 45 40 12 3 70 80

380 (130) (45) (40) (12) (3) (70) 80

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-02 Statement of Cash Flows Operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For interest expense For income taxes Net cash flows Investing activities: Sale of land Purchase of ST investment Purchase of equipment Net cash flows Financing activities: Repayment of notes payable Sale of bonds payable Sale of common stock Payment of cash dividends Net cash flows Net increase in cash Totals

382 142 48 10 73 109

7 25 150 (168)

30 60 76 35 71 12 1,175
Correct!

12

1,175
Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-02 WRIGHT COMPANY Statement of Cash Flows For year ended December 31, 2011 (in $000) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods To employees For interest For income taxes Net cash flows from operating activities Cash flows from investing activities: Sale of land Purchase of short-term investment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Repayment of notes payable Sale of bonds payable Sale of common stock Payment of cash dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31

382 (142) (48) (10) (73) $ 109

Correct!

7 (25) (150) (168)

Correct!

(30) 60 76 (35) 71
Correct!

$
Correct!

12 30 42

Given Data P21-02: WRIGHT COMPANY Balance Sheet and Income Statement data are given in the solution. Additional information: Original land cost Land sale Common stock purchase New equipment cost Note payment, 1/1/2011 Bond sale, 1/1/2011 Common stock sold Common stock par Net income Cash dividends paid

$ $ $ $ $ $ $ $ $ $

10,000 7,000 25,000 150,000 30,000 60,000 76,000 50,000 80,000 35,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-04 DUX COMPANY Spreadsheet for the Statement of Cash Flows ($ in 000s) Dec. 31 2010 Balance Sheet Asset: Cash Accounts receivable Less: Allowance Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Acc. depreciation Changes Debits Credits Dec. 31 2011

20 50 (3) 2 50 10 40 250 (50) 369

13 2 1 1 5 5 30 15 30

40 5

33 48 (4) 3 55 15 70 225 (25) 420

Liabilities: Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity: Common stock Paid-in capital - excess of par Retained earnings Less: Treasury stock (at cost)

20 5 2 8 70 (3)

7 3 2 1 30 25 1

13 2 4 7 30 95 (2)

200 20 47 369

10 4 14 13 8 25

210 24 45 (8) 420

Statement of Income Revenues: Sales revenue Dividend revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Bad debts expense Interest expense Loss on sale of building Income tax expense Net income

200 3 120 25 5 1 8 3 16 25

200 3 (120) (25) (5) (1) (8) (3) (16) 25

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-04 Statement of Cash Flows Operating activities: Cash inflows: From customers From dividends received Cash outflows: To suppliers of goods To employees For interest expense For income taxes Net cash flows Investing activities: Sale of building Purchase of LT investment Purchase of equipment Net cash flows Financing activities: Sale of bonds payable Payment of cash dividends Purchase of treasury stock Net cash flows Net increase in cash Totals

202 2 132 28 5 17 22

7 5 15 (13)

25 13 8 13 584
Correct!

4 13

584
Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-04 DUX COMPANY Statement of Cash Flows For year ended December 31, 2011 (in $000) Cash flows from operating activities: Cash inflows: From customers From dividends received Cash outflows: To suppliers of goods To employees For interest For income taxes Net cash flows from operating activities Cash flows from investing activities: Sale of building Purchase of long-term investment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Sale of bonds payable Payment of cash dividends Purchase of treasury stock Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired $30,000 of land by issuing a 13%, 7-year note. $
Correct!

202 2 (132) (28) (5) (17) $

Correct!

22

7 (5) (15) (13)

Correct!

25 (13) (8) 4
Correct!

13 20 33
Correct!

30

Given Data P21-04: DUX COMPANY Balance Sheet and Income Statement data are given in the solution. Additional information: Building cost Building sale Building depreciated Common stock purchased as long term investment Note payable for property Note payable interest Equipment purchase Bond sale, 1/1/11 Stock dividend issue (1,000 shares) Common stock par value Market price per share Cash dividends paid Number of common stock shares repurchased Common stock repurchase cost

$ $ $ $ $ $ $ $ $ $

40,000 7,000 3/4 5,000 30,000 13% 15,000 25,000 5% 10 14 13,000 500 8,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-05

METAGROBOLIZE INDUSTRIES Spreadsheet for the Statement of Cash Flows ($ in 000s) Dec. 31 2010 Balance Sheet Assets: Cash Accounts receivable Inventory Land Building Less: Acc. depreciation Equipment Less: Acc. depreciation Patent Liabilities: Accounts payable Accrued expenses Lease liability - land Shareholders' Equity: Common stock Paid-in capital - excess of par Retained earnings Changes Debits Credits Dec. 31 2011

375 450 525 600 900 (270) 2,250 (480) 1,500 5,850 450 225 -

225 150 375 150

75 30 300 315 300

900 270

600 600 900 675 900 (300) 2,850 (525) 1,200 6,900 750 300 150

300 75 150

3,000 675 1,500 5,850

225 450

150 75 975

3,150 750 1,800 6,900

Income Statement Revenues: Sales revenue Gain on sale of land Expenses: Cost of goods sold Depreciation expense-build. Depreciation expense-equip. Loss on sale of equipment Amortization of patent Operating expenses Net income

2,645 90 600 30 315 15 300 500 975

2,645 90 (600) (30) (315) (15) (300) (500) 975

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-05 Statement of Cash Flows Operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods For operating expenses Net cash flows Investing activities: Purchase of equipment Sale of land Sale of equipment Net cash flows Financing activities: Payment of cash dividends Net cash flows Net increase in cash Totals

2,495 675 425 1,395

900 165 15 (720)

450 225 8,155

Correct!

(450) 225

8,155
Correct!

METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2011 (in $000) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods For operating expenses Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of land Sale of equipment Net cash flows from investing activities Cash flows from financing activities: Payment of cash dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Land acquired by capital lease $ 150
Correct!

2,495 (675) (425) $ 1,395

Correct!

(900) 165 15 (720)

Correct!

(450) (450)
Correct!

225 375 600

Correct!

Given Data P21-05: METAGROBOLIZE INDUSTRIES Balance Sheet and Income Statement data are given in the solution. Additional information: Equipment cost Depreciated Stock dividend Cash dividend

$ $ $

300,000 90% 225,000 450,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-18 ARDUOUS COMPANY Spreadsheet for the Statement of Cash Flows ($ in 000s) Dec. 31 2010 Balance Sheet Asset: Cash Accounts receivable Less: Allowance Investment rev. receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Acc. depreciation Patent Changes Debits Credits Dec. 31 2011

81 202 (8) 4 200 8 125 150 400 (120) 32 1,074

35 2 2 2 5 4 6 25 46 82 35

116 200 (10) 6 205 4 156 196 412 (97) 30 1,218

70 12 2

Liabilities: Accounts payable Salaries payable Bond interest payable Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity: Common stock Paid-in capital - excess of par Preferred stock Retained earnings Less: Treasury stock

65 11 4 14 8 275 (25)

15 5 4 2 3 23 82 60 3

50 6 8 12 11 23 82 215 (22)

410 85 227 1,074

20 10 75 30 22 9 67

430 95 75 242 (9) 1,218

Statement of Cash Flows Operating activities: Net income Adjustments for noncash effects: Depreciation expense Patent amortization expense Amortization of discount Decrease in accounts receivable Increase in allowance Increase in investment rev. receivable Equity method income Decrease in prepaid insurance Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in interest payable Decrease in tax payable Increase in deferred tax liability Loss on flood (extraordinary) Net cash flows Investing activities: Sale of machine components Purchase of LT investment Purchase of land Net cash flows Financing activities: Retirement of bonds payable Sale of preferred stock Payment of cash dividends Purchase of treasury stock Net cash flows Net increase in cash Totals

67 12 2 3 2 2 2 6 4 5 15 5 4 2 3 18 82

17 25 23 (31)

60 75 22 9 35 588
Correct!

(16) 35

588
Correct!

ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2011 (in $000) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Patent amortization expense Amortization of discount Loss on flood (extraordinary) Changes in operating assets and liabilities: Decrease in accounts receivable Increase in allowance Increase in investment rev. receivable Equity method income Decrease in prepaid insurance Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in interest payable Decrease in tax payable Increase in deferred tax liability Net cash flows from operating activities Cash flows from investing activities: Sale of machine components Purchase of LT investment Purchase of land Net cash flows from investing activities Cash flows from financing activities: Retirement of bonds payable Sale of preferred stock Payment of cash dividends Purchase of treasury stock Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired $82 million building by 15-year capital lease. Acquired $46 million of land by issuing cash and a 15%, 4-year note as follows: Cost of land Cash paid Note issued

67 12 2 3 18 2 2 (2) (6) 4 (5) (15) (5) 4 (2) 3 $

Correct!

82

17 (25) (23) (31)

Correct!

(60) 75 (22) (9) (16)

Correct!

35 81 116
Correct!

$ $
Correct!

46 23 23

Given Data P21-18: ARDUOUS COMPANY Balance Sheet and Income Statement data are given in the solution. Additional information: Customer accounts written off as uncollectible Share of the net income of Demur Company shown as revenue Gain on sale of treasury bills Machine cost Unharmed machine components sold Machine depreciated Increase in deferred income tax liability Preferred stock of Tory Corporation purchased as long-term investment Land cost Cash paid in land purchase Note issued in land purchase Note interest rate Note maturity in years Term of capital lease for building purchase in years Present value of building lease payments Bonds retired at maturity Stock dividend issue (4,000,000 shares) Par value of common stock Market price of common stock at time of stock dividend Common stock repurchased as treasury stock Number of shares repurchased

$ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $

6,000,000 6,000,000 2,000,000 70,000,000 17,000,000 1/2 3,000,000 25,000,000 46,000,000 23,000,000 23,000,000 15% 4 15 82,000,000 60,000,000 4% 5.00 7.50 9,000,000 1,000,000