Financial Accounting: An Integrated Statements Approach, 2nd Edition

606 Chapter 13 Statement of Cash Flows

Assuming that there were no mergers, acquisitions, or divestitures that would impact consoli-

dated current accounts during the year, prepare a schedule showing the impact of changes in

current accounts in reconciling net income to cash flows from operating activities.

The board of directors declared cash dividends totaling $80,000 during the current year. The

comparative balance sheet indicates dividends payable of $25,000 at the beginning of the year

and $20,000 at the end of the year. What was the amount of cash payments to stockholders dur-

ing the year?

An analysis of the general ledger accounts indicates that office equipment, which cost $30,000

and on which accumulated depreciation totaled $10,000 on the date of sale, was sold for $25,000

during the year. Using this information, indicate the items to be reported on the statement of

cash flows.

An analysis of the general ledger accounts indicates that delivery equipment, which cost $120,000

and on which accumulated depreciation totaled $40,000 on the date of sale, was sold for $75,000

during the year. Using this information, indicate the items to be reported on the statement of

cash flows.

On the basis, of the details of the following fixed asset account, indicate the items to be reported

on the statement of cash flows:

Exercise 13-9

Determining cash payments

to stockholders

Goal 2

Exercise 13-10

Reporting changes in

equipment on statement of

cash flows

Goal 2

Exercise 13-11

Reporting changes in

equipment on statement of

cash flows

Goal 2

Exercise 13-12

Reporting land transactions on

statement of cash flows

Goal 2

Exercise 13-13

Reporting stockholders’ equity

items on statement of cash

flows

Goal 2

LAND

Jan. 1 Balance 900,000 Oct. 30 Sold for $310,000 250,000

Feb. 5 Purchased for cash 300,000

Dec. 31 Balance 950,000

COMMON STOCK

Jan. 1 Balance, 70,000 shares 700,000

Feb. 11 12,000 shares issued

for cash 120,000

June 30 4,100-share stock

dividend 41,000

Dec. 31 Balance 861,000

PAID-IN CAPITAL IN EXCESS OF PAR

Jan. 1 Balance 140,000

Feb. 11 12,000 shares issued

for cash 360,000

June 30 Stock dividend 102,500

Dec. 31 Balance 602,500

On the basis of the following stockholders’ equity accounts, indicate the items, exclusive of net

income, to be reported on the statement of cash flows. There were no unpaid dividends at either

the beginning or the end of the year.