Information for XYZ Co.
Account Description |
December 31, 2017 |
December 31, 2016 |
Assets |
||
Cash and Cash Equivalents |
45,000 |
13,000 |
Accounts Receivable |
91,000 |
88,000 |
Equipment |
139,000 |
22,000 |
Accum. Deprec. – Equipment |
(17,000) |
(11,000) |
Total |
258,000 |
112,000 |
Liabilities & Stockholders’ Equity |
||
Accounts Payable |
20,000 |
15,000 |
Bonds Payable |
100,000 |
0 |
Common Stock |
100,000 |
80,000 |
Retained Earnings |
38,000 |
17,000 |
Total |
258,000 |
112,000 |
Additional Information
(A) – Net income for 2017 was $44,000.
(B) – New equipment was purchased in 2017 but not was sold
(C) – Cash dividends of $23,000 were declared and paid in 2017
(D) – $100,000 of equipment was purchased by the issuance of Bonds Payable
Step 1 – Complete the “Financing Activities” section of the Cash Flow Statement. Financing Activities represent either amounts that:
(a) are received from owners (i.e., capital contributions from owners or proceeds from sale of the company’s stocks or bonds to 3rd parties), or distributions of cash back to owners (i.e., dividends paid to owners)
(b) a company borrows from a bank or other lender, and the principal payments made by the company to repay the loans (interest paid by the company is charged to “interest expense” which is a reduction of Net Income in the Operating Activities section)
Net Cash Provided by (Used in) Financing Activities |
Step 2 – Determine if there are any “Non-Cash Investing and Financing Activities. Non-Cash Investing and Financing Activities represent transactions where there was some investing and financing transaction that did not require any outlay of cash. So some long-term asset, long-term liability, or stockholders’ equity was impacted through a non-cash transaction.
These “non-cash” transactions get reported as “Non-Cash Investing and Financing Activities” below the body of the cash transactions section.
Examples of non-cash investing and financing activities are:
(a) a company acquiring property or equipment by issuing some of its stock or bonds,
(b) issuing stock (rather than paying cash) to pay off some of the company’s debt.
Step 3 – Prepare the Cash Flow Statement.
XYZ Co.
Cash Flow Statement
For the Year Ended December 31, 2017
Operating Activities |
|
Net Cash Provided by (Used In) Operating Activities |
Investing Activities |
|
Net Cash Provided by (Used in) Investing Activities |
Financing Activities |
|
Net Cash Provided by (Used in) Financing Activities |
Net Increase in Cash and Cash Equivalents |
|
Cash and Cash Equivalents – Beginning of Year |
|
Cash and Cash Equivalents – End of Year |
|
Non-Cash Investing and Financing Activities: |
|
Information for XYZ Co. Account Description December 31, 2017 December 31, 2016 Assets Cash and Cash...
Information for XYZ Co. Account Description December 31, 2017 December 31, 2016 Assets Cash and Cash Equivalents 45,000 13,000 Accounts Receivable 91,000 88,000 Equipment 139,000 22,000 Accum. Deprec. – Equipment (17,000) (11,000) Total 258,000 112,000 Liabilities & Stockholders’ Equity Accounts Payable 20,000 15,000 Bonds Payable 100,000 0 Common Stock 100,000 80,000 Retained Earnings 38,000 17,000 Total 258,000 112,000 Additional Information (A) – Net income for 2017 was $44,000. (B) – New equipment was purchased in 2017 but not was sold...
Cash and cash equivalents balance, December 31, 2016 Cash and cash equivalents balance, December 31, 2017 Cash received as interest Cash paid for salaries Bonds payable retired by issuing common stock (no gain or loss on retirement) Cash paid to retire long-term notes payable Cash received from sale of equipment Cash received in exchange for six-month note payable Land purchased by issuing long-term note payable Cash paid for store equipment Cash dividends paid Cash paid for other expenses Cash received...
i Data Table 2018 2017 Current Assets: Cash $ 86,800 $ 64,200 87,000 17,000 69,000 82,000 Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable Income Tax Payable 58,000 14,700 55,600 16,500 i Data Table Transaction Data for 2018: Issuance of common stock for cash Depreciation expense Purchase of equipment with cash Acquisition of land by issuing long-term notes payable Book value of building sold $ 46,000 Payment of notes payable 17,000 Payment of cash dividends 69,000 Issuance of notes payable...
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