The Statement of Cash Flows

1. The Statement of Cash Flows Chapter 14 Exercises

2. Preparing the Statement of Cash Flows • In-Class Exercise (Form groups and work exercise): Exercise No.Page E14-21 856 Cash Flows Statement- Indirect Method (Use the schedule format, as reflected on the next slide, to begin the exercise)

3. Statement of Cash Flows – Indirect Method Use this format for the schedule • ExercisePage • E14-21 856 Cash Flow Statement

4. Statement of Cash Flows – Indirect Method Exercise E14-21: Use the following financial statements and additional information to prepare a statement of cash flows for the year ended September 30, 2015. Minerals Plus, Inc.Comparative Balance Sheets Assets20152014Cash………………………………… $ 30,000 $ 8,000Accounts receivable…………….. 41,000 59,000Merchandise Inventory…..……… 97,000 93,000Plant assets……..………………… 199,000 80,000Accum. Depreciation….…………. -46,000 -20,000Land………………………………… 72,000 100,000Total Assets………………………. $393,000$320,000Liabilities & EquityAccounts Payable……………….. $ 30,000 $ 17,000Accrued liabilities……………….. 11,000 24,000Notes payable (long-term)……… 19,000 18,000Common Stock……………….….. 39,000 10,000Retained earnings……………….. 294,000 251,000Total liabilities and equity………. $393,000$320,000 Minerals Plus, Inc.Income Statement Sales revenue………… $235,000Cost of goods sold…. -97,000Gross profit…………… $138,000 Operating Expenses: Depreciation……… $26,000 Salaries Expense... 57,000 Total Expenses….. -83,000Income before taxes……….. $ 55,000Income taxes expense…. -4,000 Net income……………….. $ 51,000

5. Statement of Cash Flows – Indirect Method • Exercise E14-21: • Additional Information: • Acquisition of plant assets is $119,000. Of this amount, $100,000 is paid in cash and $19,000 by signing a not payable. • Cash receipt from sale of land totals $28,000. There is no gain or loss. • Cash receipts from issuance of common stock total $29,000. • Payment of note payable is $18,000. • Payment of dividends is $8,000.

6. Statement of Cash Flows – Indirect Method Preparing the Schedule for the Statement of Cash Flows

7. Statement of Cash Flows – Indirect Method

8. Statement of Cash Flows – Indirect Method

9. Statement of Cash Flows – Indirect Method Preparing the Statement of Cash Flows Cash Flows from Operating Activities (Textbook Format)

10. Statement of Cash Flows – Indirect Method Textbook Format From Income Statement

11. Statement of Cash Flows – Indirect Method Textbook Format From Income Statement

12. Statement of Cash Flows – Indirect Method Textbook Format From Schedule

13. Statement of Cash Flows – Indirect Method Textbook Format

14. Statement of Cash Flows – Indirect Method Preparing the Statement of Cash Flows Cash Flows from Operating Activities (Alternate Format)

15. Statement of Cash Flows – Indirect Method Alternate Format From Income Statement

16. Statement of Cash Flows – Indirect Method Alternate Format

17. Statement of Cash Flows – Indirect Method Alternate Format From Schedule

18. Statement of Cash Flows – Indirect Method Alternate Format From Schedule

19. Statement of Cash Flows – Indirect Method Alternate Format

20. Statement of Cash Flows – Indirect Method Preparing the Statement of Cash Flows Cash Flows from Investing and Financing

21. Statement of Cash Flows – Indirect Method

22. Statement of Cash Flows – Indirect Method

23. Statement of Cash Flows – Indirect Method

24. Statement of Cash Flows – Indirect Method End of Exercise