CASH FLOW

contoh penyelesaian soal akuntansi keuangan dalam buku kieso p.270-273 EXERCISE 5-13 (15–20 minutes) (a) 4. (f) 1. (k) 1. (b) 3. (g) 5. (l) 2. (c) 4. (h) 4. (m) 2. (d) 3. (i) 5. (e) 1. (j) 4. , EXERCISE 5-14 (25–35 minutes) CONNECTICUT INC. Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income...................................................................... $34,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense .......................................... $ 6,000 Increase in accounts receivable....................... (3,000) Increase in accounts payable ........................... 5,000 8,000 Net cash provided by operating activities ........... 42,000 Cash flows from investing activities Purchase of equipment .............................................. (17,000) Cash flows from financing activities Issuance of common stock....................................... 20,000 Payment of cash dividends ...................................... (13,000) Net cash provided by financing activities............ 7,000 Net increase in cash........................................................... 32,000 Cash at beginning of year ................................................ 13,000 Cash at end of year............................................................. $45,000 EXERCISE 5-15 (25–35 minutes) (a) YOON CORPORATION Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income...................................................................... W160,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense........................................... W 17,000 Loss on sale of investments.............................. 7,000 Decrease in accounts receivable ..................... 5,000 Decrease in current liabilities............................ (17,000) 12,000 Net cash provided by operating activities............ 172,000 Cash flows from investing activities Sale of investments [(W74,000 – W52,000) – W7,000]........................... 15,000 Purchase of equipment .............................................. (58,000) Net cash used by investing activities.................... (43,000) Cash flows from financing activities Payment of cash dividends....................................... (50,000) Net increase in cash ........................................................... 79,000 Cash at beginning of year................................................. 78,000 Cash at end of year............................................................. W157,000 (b) Free Cash Flow Analysis Net cash provided by operating activities .................. W172,000 Less: Purchase of equipment ........................................ (58,000) Dividends.................................................................. (50,000) Free cash flow ...................................................................... W 64,000 EXERCISE 5-16 (25–35 minutes) (a) OROZCO CORPORATION Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income........................................................................ $105,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense ............................................ $27,000 Decrease in inventory............................................ 9,000 Increase in accounts receivable......................... (16,000) Decrease in accounts payable............................ (13,000) 7,000 Net cash provided by operating activities ............. $112,000 Cash flows from investing activities Sale of land....................................................................... 39,000 Purchase of equipment ................................................ (70,000) Net cash used by investing activities...................... (31,000) Cash flows from financing activities Payment of cash dividends ........................................ (40,000) Net increase in cash............................................................. 41,000 Cash at beginning of year .................................................. 22,000 Cash at end of year............................................................... $ 63,000 Noncash investing and financing activities were issue of ordinary shares to retire $50,000 of bonds outstanding. EXERCISE 5-16 (Continued) (b) Current cash debt coverage ratio = = Net cash provided by operating activities Average current liabilities = $112,000 ($34,000 + $47,000)/2 = 2.77 to 1 Cash debt coverage ratio = = Net cash provided by operating activities Average total liabilities = $112,000 ÷ $184,000 + $247,0002 = 0.52 to 1 Free Cash Flow Analysis Net cash provided by operating activities .............................. $112,000 Less: Purchase of equipment .................................................... (70,000) Dividends.............................................................................. (40,000) Free cash flow .................................................................................. $ 2,000 Orozco has acceptable liquidity. Its financial flexibility is good. It might be noted that it substantially reduced its long-term debt in 2010 which will help its financial flexibility. EXERCISE 5-17 (30–35 minutes) (a) CHEKOV CORPORATION Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income.......................................................................... $55,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense .............................................. $13,000 Patent amortization................................................... 2,500 Loss on sale of equipment..................................... 3,000* Increase in current liabilities ................................. 13,000 Increase in current assets (other than cash)........ (25,000) 6,500 Net cash provided by operating activities ............... 61,500 Cash flows from investing activities Sale of equipment ............................................................ 9,000 Addition to building......................................................... (27,000) Investment in debt securities....................................... (16,000) Net cash used by investing activities........................ (34,000) Cash flows from financing activities Issuance of bonds ........................................................... 50,000 Payment of dividends ..................................................... (25,000) Purchase of treasury shares ........................................ (11,000) Net cash provided by financing activities................ 14,000 Net increase in cash............................................................... $41,500a *[$9,000 – ($20,000 – $8,000)] aAn additional proof to arrive at the increase in cash is provided as follows: Total current assets—end of period $301,500 [from part (b)] Total current assets—beginning of period (235,000) Increase in current assets during the period 66,500 Increase in current assets other than cash (25,000) Increase in cash during year $ 41,500 EXERCISE 5-17 (Continued) (b) CHEKOV CORPORATION Statement of Financial Position December 31, 2010 Assets Non-currents assets Long-term investments................................. $ 16,000 Property, plant, and equipment Land ................................................................... $ 30,000 Building ($120,000 + $27,000).................... $147,000 Less: Accum. depreciation ($30,000 + $4,000)............................. 34,000 113,000 Equipment ($90,000 – $20,000) ................. 70,000 Less: Accum. depreciation ($11,000 – $8,000 + $9,000)............ 12,000 58,000 Total property, plant, and equipment ............................................... 201,000 Intangible assets Patents ($40,000 – $2,500) ........................... 37,500 Total non-current assets .............................. 254,500 Current assets ....................................................... 301,500b Total assets ............................................. $556,000 EXERCISE 5-17 (Continued) Equity and Liabilities Equity Share capital—ordinary ................................................ $180,000 Retained earnings ($44,000 + $55,000 – $25,000) ........ 74,000 Less: Treasury shares.................................................. 11,000 Total shareholders’ equity .................................... $243,000 Non-current liabilities Bonds payable ($100,000 + $50,000)......................... $150,000 Current liabilities ($150,000 + $13,000) ........................... 163,000 Total liabilities ........................................................... 313,000 Total equity and liabilities ................................................... $556,000 b The amount determined for current assets could be computed last and then is a “plug” figure. That is, total liabilities and equity is computed because information is available to determine this amount. Because the total assets amount is the same as total liabilities and equity amount, the amount of total assets is determined. Information is available to compute all the asset amounts except current assets and therefore current assets can be determined by deducting the total of all the other asset balances from the total asset balance (i.e., $556,000 – $37,500 – $201,000 – $16,000). Another way to compute this amount, given the information, is that beginning current assets plus the $25,000 increase in current assets other than cash plus the $41,500 increase in cash equals $301,500. Au: Is it correct. Pls confirm EXERCISE 5-18 (25–35 minutes) (a) MENACHEM CORPORATION Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income...................................................................... €34,000 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation ................................................................... € 6,000 Increase in accounts payable................................... 5,000 Increase in accounts receivable.............................. (18,000) (7,000) Net cash provided by operating activities............ 27,000 Cash flows from Investing activities Purchase of equipment .............................................. (15,000) Cash flows from financing activities Issuance of shares....................................................... 20,000 Payment of dividends ................................................. (23,000) Net cash used by financing activities.................... (3,000) Net increase in cash ........................................................... 9,000 Cash at beginning of year................................................. 13,000 Cash at end of year............................................................. €22,000 (b) Current ratio 2010 €128,000 : € 20,000 = 6.4 2009 101.000:15000 = 6.73 Free Cash Flow Analysis Net cash provided by operating activities ................................. € 27,000 Less: Purchase of equipment ....................................................... (15,000) Pay dividends......................................................................... (23,000) Free cash flow ..................................................................................... €(11,000) (c) Although, Menachem’s current ratio has declined from 2009 to 2010, it is still in excess of 6. It appears the company has good liquidity. Financial flexibility is poor due to negative free cash flow. http://svgsmdv.blogspot.com/2012/10/contoh-penyelesaian-soal-akuntansi.html