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ACCT 312 Week 7 Homework (Updated)

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Metagrobolize Industries
Spreadsheet for the Statement of Cash Flows
	Dec. 31		Changes				Dec. 31
	2012	*Debits*			*Credits*		2013
Balance Sheet
*Assets:*
Cash	375	(14)	225				600
Accounts receivable	450	(1)	150				600
Inventory	525	(4)	375				900
Land	600	(2)	150	X	(3)	75	675
Building	900						900
Less: Acc. Depreciation	(270)				(5)	30	(300)
Equipment	2,250	(11)	900		(7)	300	2,850
Less: Acc. Depreciation Patent	(480) 1,500	(7)	270		(6) (8)	315 300	(525) 1,200
	5,850						6,900

*Liabilities:*
Account payable	450				(4)	300	750
Accrued expenses	225				(9)	75	300
Lease liability – land	0			X	(2)	150	150

*Shareholders’ Equity:*
Common Stock	3,000				(12)	150	3,150
Paid-in capital– ex. Of par	675				(12)	75	750
Retained earnings	1,500	(12)	225		(10)	975
		(13)	450				1,800
	5,850						6,900

Income Statement
*Revenues:*
Sales revenue					(1)	2,645	2,645
Gain on sale of land					(3)	90	90
*Expenses:*
Cost of goods sold		(4)	600				(600)
Depreciation expense – build.		(5)	30				(30)
Depreciation expense – equip.		(6)	315				(315)
Loss on sale of equipment		(7)	15				(15)
Amortization of patent		(8)	300				(300)
Operating expenses		(9)	500				(500)
Net income		(10)	975				975

Statement of Cash Flows
*Operating activities:*
Cash inflows:
From customers		(1)	2,495
Cash outflows:
To suppliers of goods					(4)	675
For operating expenses					(9)	425
Net cash flows							1,395

*Investing activities:*
Purchase of equipment					(11)	900
Sale of land		(3)	165
Sale of equipment		(7)	15
Net cash flows							(720)

*Financing activities:*
Payment of cash dividends					(13)	450
Net cash flows							(450)
*Net increase in cash*					(14)	225	225
Totals			8,155			8,155

X = Noncash investing and financing activity

METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2013 ($ in 000)
Cash flows from operating activities:
Cash inflows:
From customers	$2,495
Cash outflows:
To suppliers of goods	(675)
For operating expenses	(425)
*Net cash flows from operating activities*		$1,395

Cash flows from investing activities:
Purchase of equipment	(900)
Sale of land	165
Sale of equipment	15
*Net cash flows from investing activities*		(720)

Cash flows from financing activities:
Payment of cash dividends	(450)
*Net cash flows from financing activities*		(450)

Net increase in cash		225

Cash balance, January 1		375
Cash balance, December 31		$ 600

Noncash investing and financing activities:
Land acquired by lease		$150

1. Calculate each of the following amounts for Mike Roe Computer

a. Cash received from customers during the reporting period.

b. Cash paid to suppliers of goods during the reporting period.

c. Cash paid to employees during the reporting period

d. Cash paid for interest during the reporting period.

e. Cash paid for insurance during the reporting period.

f. Cash paid for income taxes during the reporting period.

2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method).