Chapter 5 Solutions.docx - E5–1_F 1 Dividends paid(Payment of dividends may also be classified as an operating or an investing activity_F 2 Repayments

Chapter 5 Solutions.docx - E5–1_F 1 Dividends...

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E5–1 _F____1. Dividends paid. (Payment of dividends may also be classified as an operating or an investing activity.) _F____2. Repayments of long-term debt. _O___ 3. Depreciation and amortization. _F____4. Proceeds from the issuance of shares. _O___ 5. Change in accounts payable and accrued liabilities. _I____ 6. Sale of intangible assets. _O___ 8. Net earnings. _I____ 9. Acquisition of property, plant and equipment. _O___10. Change in inventories. E5–5 - Req. 1 - Cash flows from operating activities — indirect method Net loss ..................................................................................................... ($4,900) Depreciation expense ............................................................................... 7,000 Amortization of copyrights ....................................................................... 200 Decrease in accounts receivable ($8,000 – $15,000) .............................. 7,000 Increase in Salaries payable ($15,000 – $1,000) ..................................... 14,000 Decrease in Other accrued liabilities ($1,000 – $5,100) .......................... (4,100) Net cash provided by operating activities .......................................... $19,200 E5–8 - Req. 1 - Cash flows from operating activities—indirect method Net earnings .......................................................................................................... $ 6,558 Add (deduct) to reconcile net earnings to net cash flow provided by operating activities:: Depreciation and amortization .......................................................................... 2,625 Increase in accounts and notes receivable
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Unformatted text preview: ........................................................ (343) Increase in inventories ....................................................................................... (111) Decrease in prepaid expenses ............................................................................ 80 Increase in accounts payable ............................................................................. 1,162 Increase in income taxes payable ....................................................................... 371 Net cash flows from operating activities $10,342 Note: The cash dividend paid and repurchase of shares are not related to operating activities and do not affect cash flows from operating activities. E5–9 - Req. 1 - The investing and financing sections of the statement of cash flows for Crispy Chicken Inc.: Cash flows from investing activities: Purchases of property and equipment ............................................. (4,310 ) Proceeds from discontinued operations ........................................... 780 Net cash flows from investing activities ..................................... $(3,530) Cash flows from financing activities: Proceeds from issuance of shares ..................................................... 1,291 Repayment on long term debt .......................................................... (3,077 ) Payment of dividends* ..................................................................... (461 ) Net cash flows from financing activities ..................................... $(2,247)...
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