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Principles of Accounting, Volume 1: Financial Accounting

Problem Set A

Principles of Accounting, Volume 1: Financial AccountingProblem Set A

Problem Set A

PA 1.

LO 16.2Provide journal entries to record each of the following transactions. For each, also identify *the appropriate section of the statement of cash flows, and **whether the transaction represents a source of cash (S), a use of cash (U), or neither (N).

  1. paid $12,000 of accounts payable
  2. collected $6,000 from a customer
  3. issued common stock at par for $24,000 cash
  4. paid $6,000 cash dividend to shareholders
  5. sold products to customers for $15,000
  6. paid current month’s utility bill, $1,500
PA 2.

LO 16.3Use the following information from Acorn Company’s financial statements to determine operating net cash flows (indirect method).

PA 3.

LO 16.3Use the following information from Berlin Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.

PA 4.

LO 16.3Use the following information from Coconut Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.

PA 5.

LO 16.3Use the following information from Dubuque Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.

PA 6.

LO 16.3Use the following information from Eiffel Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.

PA 7.

LO 16.3Analysis of Forest Company’s accounts revealed the following activity for its Land account, with descriptions added for clarity of analysis. How would these two transactions be reported for cash flow purposes? Note the section of the statement of cash flow, if applicable, and if the transaction represents a cash source, cash use, or noncash transaction.

PA 8.

LO 16.4Use the following excerpts from Zowleski Company’s financial information to prepare a statement of cash flows (indirect method) for the year 2018.

PA 9.

LO 16.4Use the following excerpts from Yardley Company’s financial information to prepare a statement of cash flows (indirect method) for the year 2018.

PA 10.

LO 16.4Use the following excerpts from Wickham Company’s financial information to prepare a statement of cash flows (indirect method) for the year 2018.

PA 11.

LO 16.4Use the following excerpts from Tungsten Company’s financial information to prepare a statement of cash flows (indirect method) for the year 2018.

PA 12.

LO 16.5The following shows excerpts from financial information relating to Aspen Company and Bergamot Company.

Compute the following for both companies. Compare your results.

  1. free cash flow
  2. cash flows to sales ratio
  3. cash flows to assets ratio
PA 13.

LO 16.6Use the following excerpts from Fromera Company’s financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.

PA 14.

LO 16.6Use the following excerpts from Victrolia Company’s financial information to prepare a statement of cash flows (direct method) for the year 2018.

PA 15.

LO 16.6Use the following cash transactions relating to Lucknow Company to determine the cash flows from operating, using the direct method.

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