Matching Items Reported to Cash Flow Statement Categories

Adidas AG is a global company that designs and markets sports and fitness products, including footwear, apparel, and acce
Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method
Indicate whether each item is disclosed in the Operating Activities, Investing Activitie

1Dividends paid.
2Repayments of short-term borrowin
3Depreciation and amortization.
4Proceeds from reissuance of treasur
5[Change in] Accounts payable and ot
6Cash collections from customers.
7Purchase of investments.
8Net income.
9Purchase of property, plant, and equ
10Increase in receivables and other ass
g footwear, apparel, and accessories.
ed using the indirect method are listed here.
es, Investing Activities, or Financing Activities section of the statement or use Not Applicable

erm borrowings.
tization.
nce of treasury shares to employees.
ayable and other liabilities.
ustomers.

plant, and equipment.

and other assets.
se Not Applicable if the item does not appear on the statement. (Note: This is the exact word
s is the exact wording used on the actual statement.)
Matching Items Reported to Cash Flow Statement Categories

Dell Technologies Inc. is an integrated IT infrastructure company that brings together hardware, software, and services.
Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are
Indicate whether each item is disclosed in the Operating Activities, Investing Activities, or Financing Activities section of the sta

1[Change in] Accounts payable.

2Depreciation and amortization.
3[Change in] Inventories.
4Maturities and sales of investments.
5Proceeds from debt.
6Payments to suppliers and employees.
7Proceeds from sale of facilities, land, and other
8[Change in] Deferred revenue.
9Repurchases of Dell Common Stock.
10Net income.
rdware, software, and services.
esented using the indirect method are listed here.
r Financing Activities section of the statement or use Not Applicable if the item does not appear on the statement. (Note: This is the exact

stments.

employees.
ties, land, and other assets.

n Stock.
ent. (Note: This is the exact wording used on the actual statement.)
Reporting Cash Flows from Operating Activities

The following information pertains to Peak Heights Company:

Income Statement for Current Year

Sales $
Expenses
Cost of goods sold $ 51,775
Depreciation expense 7,500
Salaries expense 11,400
Net income $

Partial Balance Sheet Current year Prior year

Accounts receivable $ 9,900 $
Inventory 13,000
Salaries payable 1,700

Required:
Present the operating activities section of the statement of cash flows

Cash Flow from Operating Activity

Net Income 15525

Add Depreciation 7500

Working capital changes

Add Account Receivable 5400
Less Inventory -4100
Add Salaries Payable 890

Net cash provided by operating activity 25215

s Company:

86,200

70,675
15,525

Prior year
15,300
8,900
810

ement of cash flows for Peak Heights Company using the indirect method
ethod
Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the fo
In addition, Rodriguez bought a small service machine for $5,100.

Income Statement for Current Year

Service revenue $
Expenses
Salaries $ 42,800
Depreciation 7,500
Amortization of copyrights 320
Other expenses 10,000
Net loss $

Partial Balance Sheet Current Year Prior Year

Accounts receivable $ 9,500 $
Salaries payable 14,700
Other accrued liabilities 1,900

Required:
1. Present the operating activities section of the statement of cash flows for R

Cash Flow from Operating Activity

Net Loss -9220

Add: Depreciation 7500
Add: Amortization of copyrights 320
Working capital changes
Add: Account Receivable 7000
Add: Salaries Payable 12700
Less: Other accrued liabilities -3500

Net cash provided by operating activity 14800

e current year and provided the following information:
or $5,100.

51,400

60,620
-9,220

Prior Year
16,500
2,000
5,400

ent of cash flows for Rodriguez Company using the indirect method. (List loss amoun
(List loss amount and cash outflows as negative amounts.)
Time Warner Inc. is a leading media and entertainment company whose busi
A number of years ago, the company's annual report contained the following

Net loss $ -13,402

Depreciation, amortization, and impairments 34,790
Decrease in receivables 1,245
Increase in inventories 5,766
Decrease in accounts payable 445
Additions to equipment 4,377

Required:
1. Based on this information, compute cash flow from operating activities usin

Cash Flow from Operating Activity

Net Loss -13402

Add: Depreciation 34790

Working capital changes

Add: Account Receivable 1245
Less: inventories -5766
Less: accounts payable -445

Net cash provided by operating activity 16422

any whose businesses include Turner, Home Box Office, and Warner Bros.
d the following information (dollars in millions):

ng activities using the indirect method

Reporting Cash Flows from Investing and Financing Activities
Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activiti

Net income $
Purchase of property, plant, and equipment
Borrowings under line of credit (bank)
Proceeds from issuance of stock
Cash received from customers
Payments to reduce long-term debt
Sale of marketable securities
Proceeds from sale of property and equipment
Dividends paid
Interest paid
Purchase of treasury stock (stock repurchase)

Required:
Based on this information, present the investing and financing activities sections of the cash flow statement.

Cash Flow from Investing Activity

Purchase of property, plant, and equipment
Sale of marketable securities
Proceeds from sale of property and equipment
Net cash provided by Investing activity

Cash Flow from Financing Activity

Borrowings under line of credit (bank)
Proceeds from issuance of stock
Payments to reduce long-term debt
Dividends paid
Interest paid
Purchase of treasury stock (stock repurchase)
Net cash used by Financing activity
ent year, it reported the following activities:

5,145
2,077
1,126
12
37,183
53
226
6,883
294
92
2,580

he cash flow statement.

-2,077
226
6,883
5,032

1,126
12
-53
-294
-92
-2,580
-1,881
Preparing a Statement of Cash Flows (Indirect Method)
Shallow Waters Company was started several years ago by two diving instructors. below, along with additional information.
The company's comparative balance sheets and income statement are presented
Current Year Prior Year
Balance Sheet at December 31
Cash $ 3,800 $
Accounts receivable 1,000
Prepaid expenses 130

Equipment 500
$ 5,430 $
Wages payable $ 840 $
Common stock and additional paid-in capital 2,100
Retained earnings 2,490

$ 5,430 $
Income Statement for Current Year
Lessons revenue $ 38,450
Wages expense 34,000
Other expenses 4,350

Net income $ 100

Additional Data:

a. Prepaid expenses relate to rent paid in advance.

b. Other expenses were paid in cash.
c. Purchased equipment for $500 cash at the end of the current year to be used starting in following year.
d. An owner contributed capital by paying $600 cash in exchange for the company's stock.

Required:
Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outfl
with additional information.

4,200
800
190

0
5,190
1,300
1,500
2,390

5,190

direct method. (List cash outflows as negative amounts.)

Cash Flow from Operating Activity
Net Income 100

Working capital changes

less: Account Receivable -200
Add: Prepaid expenses 60
Less: Wages payable -460

Net cash used by operating activity -500

Cash Flow from Investing Activity

Purchase of equipment -500
Net cash used by Investing activity -500

Cash Flow from Financing Activity

Cash proceed from common stock 600
Net cash provided by Financing activity 600

Net decrease in cash during the year -400

Cash balance Jan 1 current year 4200
Cash balance Dec 31 current year 3800
Preparing a Statement of Cash Flows (Indirect Method)

Computer Service and Repair was started five years ago by two college roommates.
The company’s comparative balance sheets and income statement are presented below, along with additional information.
Current Year Prior Year
Balance Sheet at December 31
Cash $ 3,300 $ 4,000
Accounts receivable 700 500
Prepaid expenses 100 50
Equipment 350 0
Accumulated depreciation -50 0
$ 4,400 $ 4,550

Wages payable $ 350 $ 1,100

Short-term note payable 300 0
Common stock 1,000 1,000
Retained earnings 2,750 2,450
$ 4,400 $ 4,550

Income Statement for Current Year

Service revenue $ 34,000
Depreciation expense 50
Salaries expense 30,000
Other expenses 3,650

Net income $ 300

Additional Data:
a. Prepaid expenses relate to rent paid in advance.
b. Other expenses were paid in cash.
c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the e
d. At the end of the current year, the company signed a short-term note payable to the bank for $300.

Required:
Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outfl
 Cash Flow from Operating Activity
Net Income
ditional information. Add: Depreciation

Working capital changes

less: Account Receivable
less: Prepaid expenses
Less: Wages payable

Net cash used by operating activity

Cash Flow from Investing Activity

Purchase of equipment
Net cash used by Investing activity

Cash Flow from Financing Activity

Short-term note payable
Net cash provided by Financing activity

Net decrease in cash during the year

Cash balance Jan 1 current year
Cash balance Dec 31 current year

ciation expense at the end of the current year.

method. (List cash outflows as negative amounts.)

 300
50

-200
-50
-750

-650

-350
-350

300
300

-700
4000
3300