Modelos de Dictamen1

Chapter 13
The Statement of Cash Flows
Short Exercises
(10 min.) S 13-1

Req. 1
The Statement of Cash Flows helps investors and creditors:
a. Predict future cash flows by reporting past cash receipts

and payments, which are good predictors of future cash
flows.
b. Evaluate management decisions by reporting on managers’

investments.
c. Predict the ability to make debt payments to lenders and

pay dividends to stockholders by reporting where cash
came from and how the cash was spent.
Chapter 13 The Statement of Cash Flows 869

(10 min.) S 13-2
Req. 1
a. 1. Operating
2. Investing
3. Financing
4. Noncash investing and financing activities
b. The “key reconciling figure” for the Statement of Cash

Flows is the increase or decrease in cash.
Where do you get this figure? The balance sheet.
c. Net income
870 Accounting 8/e Solutions Manual

(10 min.) S 13-3
Req. 1
O+ a. Increase in accounts O+ f. Loss on sale of land

payable
F− b. Payment of dividends O+ g. Depreciation expense
O− c. Decrease in accrued O− h. Increase in inventory
liabilities
F+ d. Issuance of common O+ i. Decrease in accounts
stock receivable
O− e. Gain on sale of I− j. Purchase of
building equipment
(10 min.) S 13-4

Req. 1
Flujo de efectivo de actividades de operacion:

Utilidad neta $40,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation $ 10,000
Increase in accounts receivable (9,000)
Decrease in accounts payable (6,000) (5,000)
Net cash provided by operating activities $35,000

(10 min.) S 13-5
Req. 1
Street Cellular
Statement of Cash Flows (partial)
Year ended June 30, 2012
Cash flows from operating activities:
Net income $64,000
Increase in current assets other than cash (13,000)
Decrease in current liabilities (7,000) (1,000)
Net cash provided by operating activities $63,000

(15 min.) S 13-6
Req. 1
Street Cellular
Statement of Cash Flows
Year ended June 30, 2012
Net income $64,000
Increase in current assets other than
cash (13,000)
Net cash provided by operating activities 63,000
Cash flows from investing activities:

Purchase of equipment $(44,000)
Cash receipt from sale of land 29,000
Net cash used for investing activities (15,000)
Cash flows from financing activities:

Cash receipt from issuance of common
stock $ 16,000
Payment of dividends (5,700)
Net cash provided by financing activities 10,300
Net increase in cash $58,300

(10 min.) S 13-7
Req. 1
Acquisitions = $14,000
a. Equipment, Net (let X = Acquisitions)
Beginning + Acquisitions − Depreciation = Ending
$68,000 + X − $6,000 = $76,000
X = $14,000
Equipment, Net
Beginning 68,000 Depreciation 6,000
Acquisitions 14,000
Ending 76,000
Req. 2
Payment = $14,000
b. Long-Term Notes Payable (let X = Payment)
Beginning + Issuance − Payment = Ending
$10,000 + $5,100 − X = $7,000
X = $8,100
Long-Term Notes Payable

Payment 8,100 Beginning 10,000
Issuance 5,100
Ending 7,000

(15-20 min.) S 13-8
White Media Corporation
Year ended December 31, 2011
Net income $ 19,000
Increase in accounts payable 2,000 6,000

Acquisition of equipment
(Short Exercise S 13-7) $ (14,000)

Payment of dividends $(16,100)*
Payment of note payable
(Short Exercise S 13-7) (8,100)
Cash receipt from issuance of note
payable (Short Exercise S 13-7) 5,100
stock ($27,000 −$18,000) 9,000
Net cash used for financing activities (10,100)
Net increase in cash $ 900
Cash balance, December 31, 2010 4,200
Cash balance, December 31, 2011 $ 5,100
__________
* Retained Earnings (let X = Dividends)
Beginning + Net Income − Dividends = Ending
$47,800 + $19,000 − X = $50,700
X = $16,100

(5 min.) S 13-9
Req. 1
Net income……………………….... $ 76,000

+ Depreciation………………………. 17,000
− Purchase of building…………….. (122,000)
+ Borrowing………………………….. 63,000
Increase in cash………………….. $ 34,000
(5 min.) S 13-10
Req. 1
Free Net Cash Provided Net Cash Used

Cash = by − for
Flow Operating Activities Investing Activities
$78,000 = $156,000 − $78,000

(10 min.) S 13-11
Req. 1
The CFO is right because depreciation is a noncash

expenditure.
Req. 2
Assuming all other things are equal, the cash flow should be
about the same as the previous year.
(5-10 min.) S 13-12

Req. 1
a. Investing activities e. Investing activities
b. Financing activities f. Financing activities
c. Operating activities g. Noncash investing and

financing activity
d. Operating activities

Exercises
(10-15 min.) E 13-13

Req. 1
O+ a. Loss on sale of land I+ i. Cash sale of land
NIF b. Acquisition of equipment F+ j. Issuance of long-term note

by issuance of note payable to borrow cash
payable
F– c. Payment of long-term debt O+ k. Depreciation
NIF d. Acquisition of building by F– l. Purchase of treasury stock

issuance of common stock
O+ e. Accrual of salary expense F+ m. Issuance of common stock
O+ f. Decrease in inventory O+ n. Increase in accounts

payable
O– g. Increase in prepaid O+ o. Net income

expenses
O– h. Decrease in accrued F– p. Payment of cash dividend

liabilities

(5-10 min.) E 13-14
a. Financing activities g. Investing activities
b. Financing activities h. Investing activities
c. Operating activities i. Financing activities
d. Investing activities j. Noncash investing and

financing activities
e. Operating activities
k. Operating activities
f. Financing activities

(10-15 min.) E 13-15
Req. 1

Net income $ 42,000
net cash provided by operating
activities:
Loss on sale of land 7,000
Increase in current assets other
than cash (8,000)
Net cash provided by operating
activities $ 32,000
Req. 2
Evaluation: Operating cash flow is strong, as shown by the net

cash provided by operating activities.

(15-20 min.) E 13-16
Req. 1

Net income $81,000
Decrease in accounts receivable 5,000
Increase in inventory (3,000)
Increase in accounts payable 4,500 10,500
activities $91,500

(20-30 min.) E 13-17
Req. 1
Minerals Plus, Inc.

Year Ended June 30, 2010
Net income $50,000
Increase in accounts payable 14,000
Decrease in accrued liabilities (10,000) 42,000

Acquisition of plant assets $(103,000)
Cash receipt from sale of land 24,000

Cash receipt from issuance of common stock $ 32,000
Payment of note payable (17,000)
Net increase in cash $17,000
Cash balance, June 30, 2009 15,000
Cash balance, June 30, 2010 $32,000
Noncash investing and financing activities:

Acquisition of plant assets by issuing note payable $17,000

(10-15 min.) E 13-18
Req. 1
Cash dividends = $43,000*
* Retained Earnings (let Dividends = X)

Beginning + Net income − Dividends = Ending
$48,000 + $64,000 − X = $69,000
X = $43,000
Retained Earnings
Beginning 48,000
Cash dividends 43,000 Net income 64,000
Ending 69,000
Req. 2
Cash receipt = Book value of asset sold, $3,000
+ Gain on sale, $4,000
= $7,000*
* Plant Assets, Net (let X = Book value sold)

Book value
Beginning + Acquisitions − Depreciation − sold = Ending
$103,000 + $27,000 − $16,000 − X = $107,000
X = $7,000
Plant Assets, Net

Beginning 103,000 Depreciation 19,000
Acquisitions 27,000 Book value sold 7,000
Ending 107,000

(10 min.) E 13-19
Req. 1
Acquisition of plant assets = $89,000
Plant Assets, Net (let X = Acquisitions)

Book value of
Beginning + Acquisitions − Depreciation − assets sold = Ending
$185,000 + X − $49,000 − $0 = $225,000
X = $89,000
Plant Assets, Net

Beginning 185,000
Acquisitions 89,000 Depreciation 49,000
Ending 225,000

(15 min.) E 13-20
Req. 1
a. Net Payment of long-term note payable is $11,000

($69,000 − $58,000)
b. Issuance of common stock is $13,000

($45,000 − $32,000)
c. Payment of dividends is $52,000
Retained Earnings (let X = Dividends)
Beginning Ending
Net
retained + − Dividends = retained
income
earnings earnings
$234,000 + $109,000 − X = $291,000
X = $52,000
Retained Earnings
Beginning 234,000
Dividends 52,000 Net income 109,000
Ending 291,000

(20 min.) E 13-21
Req. 1
Cole Gymnastics Equipment

Year Ended December 31, 2011
Thousands
Net income $109
Depreciation $ 49
Increase in accounts receivable (6)
Decrease in inventory 7
Increase in accounts payable 2
Decrease in salary payable (1) 51
Net cash provided by operating activities 160

Acquisition of plant assets (Exercise 13-19) $(89)
Purchase of investments ($91,000 − $74,000) (17)
Net cash used for investing activities (106)

Payment of dividends (Exercise 13-20) $(52)
Payment of note payable (Exercise 13-20) (11)
stock (Exercise 13-20) 13
Net cash used for financing activities (50)
Net increase in cash $ 4
Cash balance, December 31, 2010 16
Cash balance, December 31, 2011 $ 20

Problems
Group A
(40 min.) P 13-22A

Req. 1
The purpose of the cash flow statement is to show where cash

came from and how cash was spent during the period.
Req. 2
North American Reserve Rare Coins

Income Statement
Sales revenue (2,900 × $300) $870,000
Cost of goods sold 310,000
Salary expense 96,000
Depreciation expense ($46,000 / 5) 9,200
Rent expense 11,000
Income tax expense 16,000
Net income $ 427,800

(continued) P 13-22A
Req. 3

Balance Sheet
December 31, 2010
ASSETS LIABILITIES
Current: Current:
Cash $542,500* Accounts payable
Accounts receivable ($240,000 − $140,000) $100,000
(2,900 × $300 × .15) 130,500 Salary payable 5,000
Inventory 255,000** Total current liabilities 105,000
Total current assets 928,000
STOCKHOLDERS’ EQUITY
Property, plant, and equipment: Common stock 475,000
Store fixtures $46,000 Retained earnings
Less Accumulated ($427,800 − $43,000) 384,800
depreciation (9,200) 36,800 859,800
Total liabilities and
Total assets $964,800 stockholders' equity $964,800
__________
*$475,000 − $46,000 − $330,000 − $11,000 − $135,000 + $739,500 − $91,000 − $16,000 −
$43,000 = $542,500.
**$330,000 + $235,000 – $310,000 = $255,000

Req. 4

Net income $ 427,800
Increase in salary payable 5,000 (271,300)

Purchase of store fixtures $ (46,000)

Issuance of common stock $475,000
Payment of dividend (43,000)
________
Increase in cash $542,500
Cash balance, December 31, 2010 $542,500

(35-45 min.) P 13-23A
Smithson, Inc.
Net income $ 72,500
Gain on sale of building (4,500)
Increase in inventories (2,000)
Decrease in income tax payable (1,700)
16,700

Proceeds from sale of building 60,500

Issuance of note payable 60,000
Payment of cash dividends (51,000)
Net cash provided by financing activities 900
Net increase (decrease) in cash $ 79,600


Acquisition of land by issuing long-term note payable $118,000
Total noncash investing and financing activities $118,000

(35-45 min.) P 13-24A
Req. 1
Morston Medical Supply

Net income $ 60,600
Increase in accounts payable 0
Decrease in accrued liabilities (600)
19,500

Purchase of building $(54,600)
Purchase of equipment (105,000)

Issuance of long-term note payable $ 49,000
Issuance of common stock 109,000
Payment of cash dividend (14,200)
Net increase in cash $ 64,300

Req. 2
Evaluation:
 Operations are generating cash.
 The company is investing in new plant assets.
 There is more financing by issuing stock than by
borrowing.
 Cash increased during the year.
 For the reasons given above, this company’s cash
flows look strong.

(30-40 min.) P 13-25A
Req. 1
Cobbs Hill, Inc.

Net income $112,400
Decrease in inventories 12,800

Purchase of land $(24,700)
Purchase of equipment
($92,700 − depreciation expense of $14,200 =
$78,500; $100,900 − $78,500) (22,400)

Payment of dividends
($5,700 + $112,400 − $38,300) $(79,800)

Req. 2
C. This problem will help evaluate an investment because I will

learn how operating activities, investing activities, and
financing activities generate cash receipts and cash payments,
and I will learn how companies prepare the statement of cash
flows.

Problems
Group B
(40 min.) P 13-26B

Req. 1
The purpose of the cash flow statement is to show where cash

came from and how cash was spent during the period.
Req. 2
Official Reserve Rare Coins

Income Statement
Sales revenue (2,800 × $225) $630,000
Cost of goods sold 340,000
Salary expense 94,000
Depreciation expense ($46,000 / 5) 9,200
Rent expense 10,000
Income tax expense 22,000
Net income $154,800

(continued) P 13-26B
Req. 3

Balance Sheet
December 31, 2010
ASSETS LIABILITIES
Current: Current:
Cash $318,000* Accounts payable
Accounts receivable ($237,000 − $137,000) $100,000
(2,800 × $225 × .20) 126,000 Salary payable 2,000
Inventory 207,000** Total current liabilities 102,000
Total current assets 651,000
STOCKHOLDERS’ EQUITY
Property, plant, and equipment: Common stock 475,000
Store fixtures $46,000 Retained earnings
Less Accumulated ($154,800 − $44,000) 110,800
depreciation (9,200) 36,800 585,800
Total liabilities and
Total assets $687,800 stockholders' equity $687,800
__________
*$475,000 − $46,000 − $310,000 − $10,000 − $137,000 + $504,000 − $92,000 − $22,000 −
$44,000 = $318,000.
**$310,000 + $237,000 – $340,000 = $207,000

Req. 4

Net income $154,800
Increase in salary payable 2,000 221,800
Net cash used by operating activities (67,000)

Purchase of store fixtures $ (46,000)

Payment of dividend (44,000)
________

(35-45 min.) P 13-27B
Carlson, Inc.
Net income $ 69,500
Gain on sale of building (4,500)
Decrease in income tax payable (1,700)
18,700

Proceeds from sale of building 10,000

Issuance of note payable 59,000
Net increase (decrease) in cash $ 41,100


Acquisition of land by issuing long-term note payable $118,000
Total noncash investing and financing activities $118,000

(35-45 min.) P 13-28B
Req. 1
Smithson Medical Supply

Net income $ 61,600
Decrease in accrued liabilities (1,000)
21,300


Issuance of common stock $ 50,000
Issuance of long-term note payable 112,000

Req. 2
Evaluation:
 Operations are generating cash.
 The company is investing in new plant assets.
 There is more financing by issuing stock than by
borrowing.
 Cash increased during the year.
 For the reasons given above, this company’s cash
flows look strong.

(30-40 min.) P 13-29B
Req. 1
Digital Subscriptions, Inc.

Net income $ 97,600
Decrease in inventories 11,600

Purchase of land $(24,700)
Purchase of equipment
($88,700 − depreciation expense of $14,800 =
$73,900; $96,900 − $73,900) (23,000)

Payment of dividends
($4,200 + $97,600 − $38,700) $(63,100)

Req. 2
C. This problem will help evaluate an investment because I will

learn how operating activities, investing activities, and
financing activities generate cash receipts and cash payments,
and I will learn how companies prepare the statement of cash
flows.

Continuing Exercise
(30-40 min.) E 13-30

Req. 1
Sherman Lawn Service, Inc.

Net income $ 5,350
net cash used for operating activities:
Depreciation $ 350
Increase in lawn supplies (80)
Decrease in accounts payable (1,050) (2,830)
activities 2,520

Issuance of common stock $ 1,000


Continuing Problem
(30-40 min.) P 13-31

Req. 1
Haupt Consulting, Inc.

Year Ended February 28, 2012
Net income $ 38,910
Increase in accounts receivable (500)
Increase in supplies (120)
Decrease in accounts payable (3,550)
Increase in salary payable 2,500
990


Issuance of long-term note payable $ 40,000
Net increase in cash $ (3,100)
Cash balance, February 28, 2011 8,100
Cash balance, February 28, 2012 $ 5,000

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Chapter 13

The Statement of Cash Flows

(10 min.) S 13-1

The Statement of Cash Flows helps investors and creditors:

a. Predict future cash flows by reporting past cash receipts

b. Evaluate management decisions by reporting on managers’

c. Predict the ability to make debt payments to lenders and

Chapter 13 The Statement of Cash Flows 869

b. The “key reconciling figure” for the Statement of Cash

Where do you get this figure? The balance sheet.

870 Accounting 8/e Solutions Manual

O+ a. Increase in accounts O+ f. Loss on sale of land

(10 min.) S 13-4

Flujo de efectivo de actividades de operacion:

Chapter 13 The Statement of Cash Flows 871

872 Accounting 8/e Solutions Manual

Cash flows from investing activities:

Cash flows from financing activities:

Chapter 13 The Statement of Cash Flows 873

a. Equipment, Net (let X = Acquisitions)

Beginning + Acquisitions − Depreciation = Ending

$68,000 + X − $6,000 = $76,000

b. Long-Term Notes Payable (let X = Payment)

Beginning + Issuance − Payment = Ending

$10,000 + $5,100 − X = $7,000

Long-Term Notes Payable

874 Accounting 8/e Solutions Manual

Cash flows from investing activities:

Cash flows from financing activities:

Chapter 13 The Statement of Cash Flows 875

Net income……………………….... $ 76,000

Free Net Cash Provided Net Cash Used

$78,000 = $156,000 − $78,000

876 Accounting 8/e Solutions Manual

The CFO is right because depreciation is a noncash

(5-10 min.) S 13-12

a. Investing activities e. Investing activities

b. Financing activities f. Financing activities

c. Operating activities g. Noncash investing and

Chapter 13 The Statement of Cash Flows 877

(10-15 min.) E 13-13

O+ a. Loss on sale of land I+ i. Cash sale of land

NIF b. Acquisition of equipment F+ j. Issuance of long-term note

F– c. Payment of long-term debt O+ k. Depreciation

NIF d. Acquisition of building by F– l. Purchase of treasury stock

O+ e. Accrual of salary expense F+ m. Issuance of common stock

O+ f. Decrease in inventory O+ n. Increase in accounts

O– g. Increase in prepaid O+ o. Net income

O– h. Decrease in accrued F– p. Payment of cash dividend

878 Accounting 8/e Solutions Manual

b. Financing activities h. Investing activities

c. Operating activities i. Financing activities

d. Investing activities j. Noncash investing and

Chapter 13 The Statement of Cash Flows 879

Cash flows from operating activities:

Evaluation: Operating cash flow is strong, as shown by the net

880 Accounting 8/e Solutions Manual

Cash flows from operating activities:

Chapter 13 The Statement of Cash Flows 881

Minerals Plus, Inc.

Cash flows from investing activities:

Cash flows from financing activities:

Noncash investing and financing activities: