Extra Practice with Operating Cash Flows.docx - From Jamie...

From Jamie Pratt, Financial Accounting in an Economic Context, 9 th Edition
The following balance sheet and income statement data were taken from the records of Martland Stores
for the year ended December 31, 2015:
2015 2014 Net Change
Balance Sheet
Cash
Accounts receivable
Inventory
Prepaid insurance
Total current assets
Machinery (net)
Total
Accounts payable
Wages payable
Total current liabilities
Bonds payable (net)
Capital stock
Retained earnings
Total
$6,000
12,000
4,500
900
$23,400
38,000
$61,400
$12,600
9,500
$22,100
17,000
15,000
7,300
$61,400
$1,400
13,500
9,800
1,200
$25,900
37,500
$63,400
$13,100
7,400
$20,500
17,000
15,000
10,900
$63,400
$4,600
(1,500)
(5,300)
(300)
(2,500)
500
($2,000)
($500)
2,100
1,600
0
0
(3,600)
($2,000)
Income Statement
Revenues
Cost of goods sold
Gross profit
Wages expense
Insurance expense
Interest expense
Depreciation expense
Net loss
$96,000
64,000
$32,000
(18,600)
(9,200)
(2,100)
(5,700)
$3,600
Prepare the operating section of the statement of cash flows and present it under both the direct and
indirect methods.
ACT 312A/612A, FALL 2017
1

From Jamie Pratt, Financial Accounting in an Economic Context, 9 th Edition
The following balance sheet and income statement data were taken from the records of Mako Retail
Supply for the year ended December 31, 2015:
2015 2014 Net Change
Balance Sheet
Cash
Accounts receivable
Inventory
Prepaid rent
Total current assets
Equipment (net)
Total
Accounts payable
Wages payable
Interest payable