财务会计 双语教学 financial accounting weygandt kieso kimmel ch14

JOHNWILEYSONS,INCFINANCIALACCOUNTING,5EPREPAREDBYKURTMHULL,MBACPACALIFORNIASTATEUNIVERSITY,LOSANGELESWEYGANDT,KIESO,KIMMELCHAPTER14STATEMENTOFCASHFLOWSSTUDYOBJECTIVESAFTERSTUDYINGTHISCHAPTER,YOUSHOULDUNDERSTANDUSEFULNESSOFTHESTATEMENTOFCASHFLOWSOPERATING,INVESTING,ANDFINANCINGACTIVITIESINDIRECTMETHODDIRECTMETHODANALYSISSTUDYOBJECTIVE1USEFULNESSOFCASHFLOWSTATEMENTTHECASHFLOWSTATEMENTREPORTSCASHRECEIPTSANDCASHPAYMENTSFROMOPERATING,FINANCING,ANDINVESTINGACTIVITIESTHECASHFLOWSTATEMENTHELPSUSERSASSESS1ABILITYTOGENERATEFUTURECASHFLOWS2ABILITYTOPAYDIVIDENDSANDMEETOBLIGATIONS3WHYNETINCOMEISDIFFERENTFROMOPERATINGCASHFLOWS4CASHINVESTINGANDFINANCINGTRANSACTIONSCASHINFLOWSFROMSALEOFGOODSORSERVICESFROMRETURNONLOANSINTERESTRECEIVEDANDONEQUITYSECURITIESDIVIDENDSRECEIVEDCASHOUTFLOWSTOSUPPLIERSFORINVENTORYTOEMPLOYEESFORSERVICESTOGOVERNMENTFORTAXESTOLENDERSFORINTERESTTOOTHERSFOREXPENSESSTUDYOBJECTIVE2OPERATINGCASHFLOWSCASHINFLOWSFROMSALEOFPROPERTY,PLANT,ANDEQUIPMENTFROMSALEOFDEBTOREQUITYSECURITIESOFOTHERENTITIESFROMCOLLECTIONOFPRINCIPALONLOANSTOOTHERENTITIESCASHOUTFLOWSTOPURCHASEPROPERTY,PLANT,ANDEQUIPMENTTOPURCHASEDEBTOREQUITYSECURITIESOFOTHERENTITIESTOMAKELOANSTOOTHERENTITIESSTUDYOBJECTIVE2INVESTINGCASHFLOWSCASHINFLOWSFROMSALEOFEQUITYSECURITIESCOMPANYSOWNSTOCKFROMISSUANCEOFDEBTBONDSANDNOTESCASHOUTFLOWSTOSTOCKHOLDERSASDIVIDENDSTOREDEEMLONGTERMDEBTORREACQUIRECAPITALSTOCKSTUDYOBJECTIVE2FINANCINGCASHFLOWS1ISSUANCEOFCOMMONSTOCKTOPURCHASEASSETS2CONVERSIONOFBONDSINTOCOMMONSTOCK3ISSUANCEOFDEBTTOPURCHASEASSETS4EXCHANGESOFPLANTASSETSSIGNIFICANTNONCASHACTIVITIESTHEFOLLOWINGACTIVITIESAREREPORTEDINASEPARATESCHEDULEBOTTOMOFCASHFLOWSTATEMENTORANOTETOTHEF/SCOMPANYNAMESTATEMENTOFCASHFLOWSPERIODCOVEREDCASHFLOWSFROMOPERATINGACTIVITIESLISTOFINDIVIDUALITEMSXXNETCASHPROVIDEDUSEDBYOPERATINGACTIVITIESXXXCASHFLOWSFROMINVESTINGACTIVITIESLISTOFINDIVIDUALINFLOWSANDOUTFLOWSXXNETCASHPROVIDEDUSEDBYINVESTINGACTIVITIESXXXCASHFLOWSFROMFINANCINGACTIVITIESLISTOFINDIVIDUALINFLOWSANDOUTFLOWSXXNETCASHPROVIDEDUSEDBYFINANCINGACTIVITIESXXXNETINCREASEDECREASEINCASHXXXCASHATBEGINNINGOFPERIODXXXCASHATENDOFPERIODXXXNONCASHINVESTINGANDFINANCINGACTIVITIESLISTOFINDIVIDUALNONCASHTRANSACTIONSXXXCASHFLOWSTATEMENTFORMATNEEDEDTOPREPARECASHFLOWSTATEMENTCOMPARATIVEBALANCESHEETCURRENTINCOMESTATEMENTADDITIONALINFORMATIONINFORMATIONREQUIREDTOPREPARECASHFLOWSTATEMENTTHESCFDEALSWITHCASHRECEIPTSANDPAYMENTS,SOTHEACCRUALCONCEPTISNOTUSEDINTHEPREPARATIONOFTHESCFSTEPSINPREPARINGCASHFLOWSTATEMENTSTUDYOBJECTIVE3INDIRECTMETHODCASHFLOWFROMOPERATINGACTIVITIESXCASHFLOWFROMINVESTINGACTIVITIESXCASHFLOWFROMFINANCINGACTIVITIESXNETCHANGEINCASHXBEGINNINGCASHEQUIVALENTSXENDINGCASHEQUIVALENTSXXTHEOPERATINGSECTIONRECONCILESNETINCOMEWITHCASHFLOWFROMOPERATIONSTHEINVESTINGANDFINANCINGSECTIONSARETHESAMEREGARDLESSOFWHICHMETHODISUSEDINDIRECTMETHODILLUSTRATIONDIRECTMETHODILLUSTRATION144FORTHEYEARENDEDDEC31,2006INDIRECTMETHODUSINGTHEINFORMATIONPROVIDED,THECASHFLOWSTATEMENTWILLACCOUNTFOREVERYCHANGEONTHECOMPARATIVEBALANCESHEETTHEOBJECTIVETODETERMINENETCASHFLOWDURINGTHEPERIOD,WHICHSHOULDMATCHTHECHANGEINCASHDURINGTHEPERIODINDIRECTMETHODNETINCOME145,000ADJUSTMENTSTORECONCILENETINCOMETOCASHFLOWFROMOPERATIONSDEPRECIATIONEXP9,000LOSSONSALEOFEQUIPMENT3,000DECREASEINA/R10,000INCREASEININVENTORY5,000INCREASEINPREPAIDEXPENSES4,000INCREASEINACCOUNTSPAYABLE16,000DECREASEININCOMETAXESPAYABLE2,00027,000NETCASHPROVIDEDBYOPERATINGACTIVITIES172,000PURCHASEOFBUILDING120,000PURCHASEOFEQUIPMENT25,000SALEOFEQUIPMENT4,000NETCASHUSEDBYINVESTINGACTIVITIES141,000ISSUANCEOFCOMMONSTOCK20,000PAYMENTOFDIVIDENDS29,000NETCASHUSEDBYFINANCINGACTIVITIES9,000NETINCREASEINCASH22,000BEGINNINGCASH33,000ENDINGCASH55,000REVIEWQUESTIONACOMPANYSNETINCOMEIS132,000,ANDDURINGTHEYEARTHEFOLLOWINGOCCURRED1ACCOUNTSPAYABLEINCREASED10,000,2INVENTORYDECREASED6,0003ACCOUNTSRECEIVABLEINCREASED12,000COMPUTECASHFLOWSFROMOPERATIONSNETINCOME132,000INCREASEINA/R12,000INCREASEINA/P10,000DECREASEININVENTORY6,000CASHFLOWSFROMOPERATIONS136,000STUDYOBJECTIVE4DIRECTMETHODTHEDIRECTMETHODDOESNOTRECONCILENETINCOMEWITHCASHFLOWFROMOPERATIONSINSTEAD,THEOPERATINGSECTIONLISTSCASHPAIDANDCASHRECEIVEDFORALLINCOMESTATEMENTITEMSJUAREZCOMPANYCOMPARATIVEBALANCESHEETCHANGEASSETS20062005INCREASE/DECREASECASH191,000159,00032,000INCREASEACCOUNTSRECEIVABLE12,00015,0003,000DECREASEINVENTORY170,000160,00010,000INCREASEPREPAIDEXPENSES6,0008,0002,000DECREASELANDEQUIPACCUMULATEDDEPEQUIP140,000160,00016,00080,0000060,000INCREASE160,000INCREASE16,000INCREASETOTAL663,000422,000LIABILITIESANDSTOCKHOLDERSEQUITYACCOUNTSPAYABLE52,00060,0008,000INCREASEACCRUEDEXPENSESPAYABLE15,00020,0005,000INCREASEINCOMETAXESPAYABLEBONDSPAYABLECOMMONSTOCK12,000130,000360,00000300,00012,000INCREASE130,000INCREASE60,000INCREASERETAINEDEARNINGS94,00042,00052,000INCREASETOTAL663,000422,000DIRECTMETHODJUAREZCOMPANYINCOMESTATEMENTFORTHEYEARENDEDDECEMBER31,2006REVENUESFROMSALES975,000COSTOFGOODSSOLD660,000OPERATINGEXPENSESEXCLUDINGDEPRECIATION176,000DEPRECIATIONEXPENSE18,000LOSSONSALEOFSTOREEQUIPMENT1,000855,000INCOMEBEFOREINCOMETAXES120,000INCOMETAXEXPENSE36,000NETINCOME84,000ADDITIONALINFORMATION1IN2006,THECOMPANYDECLAREDANDPAIDA32,000CASHDIVIDEND2BONDSWEREISSUEDATFACEVALUEFOR130,000INCASH3EQUIPMENTCOSTING180,000WASPURCHASEDFORCASH4EQUIPMENTCOSTING20,000WASSOLDFOR17,000CASHWHENTHEBOOKVALUEOFTHEEQUIPMENTWAS18,0005COMMONSTOCKOF60,000WASISSUEDTOACQUIRELANDDIRECTMETHODDIRECTMETHODOPERATINGACTIVITIESREVENUESFROMSALES975,000ADDDECREASEINACCOUNTSRECEIVABLE3,000CASHRECEIPTSFROMCUSTOMERS978,000CASHRECEIPTSFROMCUSTOMERSIFACCOUNTSRECEIVABLEDECREASESFROMONEPERIODTOANOTHER,CASHCOLLECTIONSCREDITSALESNOTEINEACHCASE,THEINTERACTIONBETWEENBALANCESHEETANDINCOMESTATEMENTACCOUNTSPAYMENTSTOSUPPLIERS1ADJUSTCOGSFORTHECHANGEININVENTORYTOGETPURCHASES2ADJUSTPURCHASESFORTHECHANGEINA/PTOGETPAYMENTSCOSTOFGOODSSOLD660,000ADDINCREASEININVENTORY10,000PURCHASES670,000ADDDECREASEINA/P8,000CASHPAYMENTSTOSUPPLIERS678,000OPERATINGEXPENSESAREADJUSTEDFORCHANGESINPREPAIDASSETSANDACCRUEDEXPENSESPAYMENTSFOROPERATINGEXPENSESOPERATINGEXPENSES176,000DEDUCTDECREASEINPREPAIDEXPENSES2,000ADDDECREASEINACCRUEDEXPENSESPAYABLE5,000CASHPAYMENTSFOROPERATINGEXPENSES179,000TAXEXPENSEISADJUSTEDFORCHANGESINPREPAIDTAXESANDTAXESPAYABLEPAYMENTSFORTAXESINCOMETAXEXPENSE36,000DEDUCTINCREASEININCOMETAXPAYABLE12,000CASHPAYMENTSFORTAXES24,000IFTAXPAYABLEINCREASESDURINGTHEYEAR,TAXEXPENSECASHPAIDFORTAXESCASHFLOWSTATEMENTDIRECTMETHODFORTHEYEARENDEDDECEMBER31,2006REVIEWQUESTIONGIVENTHEFOLLOWINGFACTS1BEGINNINGA/RIS44,0002ENDINGA/RIS42,0003SALESDURINGTHEPERIODARE129,000COMPUTEC