111) Identify where each of the following items would appear on a cash flow statement. Use (O) for the operating activities section, (I) for the investing activities section, (F) for the financing activities section, (NIF) for the schedule of noncash investing and financing activities, and (N) if the item does not appear anywhere on the cash flow statement. Assume the statement is prepared using the indirect method.
________a. gain on sale of land
________b. cash sales
________c. sale of a long-term investment in stock
________d. amortization of a patent
________e. payment of long-term debt
________f. net income
________g. payment of income taxes
________h. conversion of preferred shares into common shares
________i. sale of repurchased shares
________j. increase in Inventory
________k. purchase of equipment
________l. cost of goods sold
________m. exchange of common shares for a building
________n. distribution of a 10% stock dividend
________o. collection of accounts receivable
112) The Corn Crop Corporation gathered the following data from its accounting records for the year ended September 30, 2011:
Decrease in inventory$ 17,000
Acquisition of building218,500
Issuance of bonds payable525,000
Increase in accounts receivable47,600
Cash sales102,900
Net income195,000
Payment of income taxes27,200
Loss on sale of capital assets7,300
Declaration of stock dividend50,500
Decrease in prepaid expenses8,500
Collection of dividend revenue18,600
Increase in accrued liabilities24,500
Amortization expense49,000
Repurchase of shares56,000
Acquisition of machinery by issuing
long-term
note payable35,000
Decrease in accounts payable15,600
Prepare the operating activities section of the cash flow statement for the Corn Crop Corporation using the indirect method.
113) As the accountant for Genetic Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the indirect method and have gathered together the following data from the accounting records:
Principal payments on long-term debt$ 50,000
Collections on accounts receivable287,500
Increase in accounts payable24,300
Acquisition of equipment by issuing long-term note payable70,000
Amortization expense71,300
Collection of loan principal58,000
Proceeds from sale of investments, not including $5,100 gain49,100
Increase in accounts receivable7,200
Cash payments to purchase capital assets62,000
Decrease in accrued liabilities30,600
Payment of cash dividends46,500
Income tax expense and payments39,300
Proceeds from sale of capital assets, not including $7,400 loss22,600
Net income147,100
Cash sales217,400
Proceeds from issuance of common shares300,000
Increase in inventory41,700
Loan to another company60,000
Bonds payable converted into common shares130,000
Payments to suppliers283,100
Decrease in prepaid expenses12,800
Cash balance: December 31, 201062,500
Cash balance: December 31, 2011452,000
Prepare the cash flow statement for the year ended December 31, 2011, using the indirect method and including a schedule of noncash investing and financing activities, if necessary.
114) The following selected data for the Food Factory Corporation were gathered by the accountants for the year ended December 31, 2010, who are responsible for preparing the financial statements:
Cost of goods sold$47,300
Amortization expense14,100
Other operating expenses15,700
Loss on sale of investments1,900
Gain on sale of capital assets6,200
Sales revenue99,700
Interest revenue7,100
Dividend revenue3,200
Salary expense24,700
Interest expense5,200
Income tax expense2,700
Net income4,600
The cash account began the year with a balance of $32,500 and ended the year with a balance of $191,500.
Other relevant data gathered by the accountants:
Accounts receivable decreased$12,600
Inventory increased7,800
Prepaid expenses decreased2,300
Accounts payable increased19,400
Salary payable increased1,400
Accrued liabilities decreased4,900
Income tax payable increased700
Acquisition of capital assets42,000
Issuance of common shares75,000
Proceeds from sale of investments29,000
Collection of loan principal25,200
Payment of dividends18,000
Purchased equipment by signing a note payable25,000
Proceeds from sale of capital assets26,700
Proceeds from sale of repurchased shares25,000
Prepare the cash flow statement for the year ended December 31, 2010, using the indirect method and including a schedule of noncash investing and financing activities, if necessary.