610 Chapter 13 Statement of Cash Flows
Dec. 31, 2008 Dec. 31, 2007
Assets
Cash $ 50 $ 16
Accounts receivable (net) 30 32
Inventories 24 19
Land 35 50
Equipment 32 15
Accumulated depreciation—equipment (9) (6)
Total $162 $126
Liabilities and Stockholders’ Equity
Accounts payable (merchandise creditors) $ 17 $ 20
Dividends payable 1 —
Common stock, $1 par 4 2
Paid-in capital in excess of par—common stock 20 10
Retained earnings 120 94
Total $162 $126List the errors you find in the following statement of cash flows. The cash balance at the begin-
ning of the year was $70,700. All other figures are correct, except the cash balance at the end of
the year.Exercise 13-24
Statement of cash flows
Goal 2Exercise 13-25
Cash conversion cycle
Goal 4Healthy Choice Nutrition Products, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2006Cash flows from operating activities:
Net income, per Income statement $100,500
Add: Depreciation $ 49,000
Increase in accounts receivable 10,500
Gain on sale of investments 5,000 64,500
$165,000
Deduct: Increase in accounts payable $ 4,400
Increase in inventories 18,300
Decrease in accrued expenses 1,600 24,300
Net cash flow from operating activities $140,700
Cash flows from investing activities:
Cash received from sale of investments $ 85,000
Less: Cash paid for purchase of land $ 90,000
Cash paid for purchase of equipment 150,100 240,100
Net cash flow used for investing activities (155,100)
Cash flows from financing activities:
Cash received from sale of common stock $107,000
Cash paid for dividends 45,000
Net cash flow provided by financing activities 152,000
Increase in cash $137,600
Cash at the end of the year 105,300
Cash at the beginning of the year $242,900The average accounts receivable, inventory, and accounts payable information for fiscal year
2004 for Home Depot Inc.andLowe’s Inc.is provided as follows (in millions):Home Depot Inc. Lowe’s Inc.
Averageaccounts receivable $1,298 $ 78
Average inventory 9,576 5,283
Average accounts payable 5,462 2,450