LO 16.1Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N).
- Declared and paid to shareholders, a dividend of $24,000.
- Issued common stock at par value for $12,000 cash.
- Sold a tract of land that had cost $10,000, for $16,000.
- Purchased a company truck, with a note payable of $38,000.
- Collected $8,000 from customer accounts receivable.
LO 16.2In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.)
- paid advertising expense
- paid dividends to shareholders
- purchased business equipment
- sold merchandise to customers
- purchased plant assets
LO 16.2In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.)
- borrowed from the bank for business loan
- declared dividends, to be paid next year
- purchased treasury stock
- purchased a two-year insurance policy
- purchased plant assets
LO 16.3Use the following information from Albuquerque Company’s financial statements to determine operating net cash flows (indirect method).
LO 16.3What adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets?
LO 16.3Use the following information from Birch Company’s balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.
LO 16.3Use the following information from Chocolate Company’s financial statements to determine operating net cash flows (indirect method).
LO 16.3Use the following information from Denmark Company’s financial statements to determine operating net cash flows (indirect method).
LO 16.3Use the following excerpts from Eagle Company’s financial records to determine net cash flows from financing activities.
LO 16.3Use the following excerpts from Fruitcake Company’s financial records to determine net cash flows from investing activities.
LO 16.3Use the following excerpts from Grenada Company’s financial records to determine net cash flows from operating activities and net cash flows from investing activities.
LO 16.4Provide the missing piece of information for the following statement of cash flows puzzle.
LO 16.4Provide the missing piece of information for the following statement of cash flows puzzle.
LO 16.5Use the following excerpts from Kirsten Company’s Statement of Cash Flows and other financial records to determine the company’s free cash flow.
LO 16.5Use the following excerpts from Franklin Company’s statement of cash flows and other financial records to determine the company’s free cash flow for 2018 and 2017.
LO 16.5The following are excerpts from Hamburg Company’s statement of cash flows and other financial records.
Compute the following for the company:
- free cash flow
- cash flows to sales ratio
- cash flows to assets ratio
LO 16.6Use the following excerpts from Algona Company’s financial statements to determine cash received from customers in 2018.
LO 16.6Use the following excerpts from Huckleberry Company’s financial statements to determine cash paid to suppliers for inventory in 2018.