Learning Materials
Features
Discover
Chapter 23: Q5BE (page 1373)
Use the information from BE23-4 for Bloom Corporation. Prepare the cash flows from operating activities section of Bloom’s 2017 statement of cash flows using the indirect method.
Cash flow from operating activities is$41,000.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Jobim Inc. had the following condensed balance sheet at the end of operations for 2016.
JOBIM INC.
BALANCE SHEET
DECEMBER 31, 2016
Cash \( 8,500 Current liabilities \) 15,000
Current assets other than cash 29,000 Long-term notes payable 25,500
Equity investments 20,000 Bonds payable 25,000
Plant assets (net) 67,500 Common stock 75,000
Land 40,000 Retained earnings 24,500
\(165,000 \)165,000
During 2017, the following occurred.
1. A tract of land was purchased for \(9,000.
2. Bonds payable in the amount of \)15,000 were redeemed at par.
3. An additional \(10,000 in common stock was issued at par.
4. Dividends totaling \)9,375 were paid to stockholders.
5. Net income was \(35,250 after allowing depreciation of \)13,500.
6. Land was purchased through the issuance of \(22,500 in bonds.
7. Jobim Inc. sold part of its investment portfolio for \)12,875. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2017.
8. Both current assets (other than cash) and current liabilities remained at the same amount.
Instructions
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2017
Stan Conner and Mark Stein were discussing the statement of cash flows of Bombeck Co. In the notes to the statement of cash flows was a schedule entitled “Non-cash investing and financing activities.” Give three examples of significant non-cash transactions that would be reported in this schedule.
Differentiate between investing activities, financing activities, and operating activities.
Question: Each of the following items must be considered in preparing a statement of cash flows for Blackwell Inc. for the year ended December 31, 2017. State where each item is to be shown in the statement, if at all.
The income statement of Vince Gill Company is shown below.
VINCE GILL COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue \(6,900,000
Cost of goods sold
Beginning inventory \)1,900,000
Purchases 4,400,000
Goods available for sale 6,300,000
Ending inventory 1,600,000
Cost of goods sold 4,700,000
Gross profit 2,200,000
Operating expenses
Selling expenses 450,000
Administrative expenses 700,000 1,150,000
Net income \(1,050,000
Additional information:
1. Accounts receivable decreased \)360,000 during the year.
2. Prepaid expenses increased \(170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased \)275,000 during the year.
4. Accrued expenses payable decreased \(100,000 during the year.
5. Administrative expenses include depreciation expense of \)60,000.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Vince Gill Company, using the indirect method.
What do you think about this solution?
We value your feedback to improve our textbook solutions.
Explanations 
Textbooks 
Exams 
GCSE 
IGCSE 
AS 
A Level 
International A Level 
University Admissions Tests 
Flashcards 
Vaia AI 
Notes 
Study Plans 
Study Sets 
Find a job 
Find a degree 
Student Deals 
Magazine 
Mobile App