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Exercise 12-14

Adj. to NI - Indirect 1. A 2. D 3. D 4. A 5. N 6. A 7. D 8. A 9. N 10. A. Exercise 12-14. Invest. and Fin. 1. OI 2. CE 3. IF 4. OI 5. OF 6. CE 7. I I 8. OI 9. IF 10. OF (Curr. Liab. but not part of Op.). Exercise 12-17.

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Exercise 12-14

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  1. Adj. to NI - Indirect 1. A 2. D 3. D 4. A 5. N 6. A 7. D 8. A 9. N 10. A Exercise 12-14

  2. Invest. and Fin. 1. OI 2. CE 3. IF 4. OI 5. OF 6. CE 7. I I 8. OI 9. IF 10. OF (Curr. Liab. but not part of Op.) Exercise 12-17

  3. Analysis (Note: first line on B/S is last line on SCF) Op:1.Noncash - Depr. $50,000 2.G/L - none here 3. Change in related Assets & Liab: A/R decr. $2,000 Inv. incr. 1,000 PP Rent incr. 200 A/P change -0- IT Pay incr. 500 (note: ST NP is financing) Problem 12-1A AOLS add subtract subtract add

  4. Investing P& E Increase $50,000 Purch Financing Pay on ST Notes Payable $2,500 Issue BP $ 25,000 Now SCF Problem 12-1A

  5. CF from Operating Net Income $(21,800) Depr. + 50,000 A/R decr. + 2,000 Inv. incr. - 1,000 PP Rent incr. - 200 IT Pay incr. + 500 CF from Operating $ 29,500 CF from Investing Purchase of Plant and Equip $(50,000) CF from Financing Pay on ST Notes Payable $(2,500) Issue BP 25,000$ 22,500 Net incr. in cash (from 10,000 to 12,000) $ 2,000 Problem 12-1A

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