{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Warren SM_Ch.16_final - CHAPTER 16 STATEMENT OF CASH FLOWS...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 16 STATEMENT OF CASH FLOWS EXERCISES Ex. 16–1 There were net additions, such as depreciation and amortization of intangible as- sets of $389 million, to the net loss reported on the income statement to convert the net loss from the accrual basis to the cash basis. For example, depreciation is an expense in determining net income, but it does not result in a cash outflow. Thus, depreciation is added back to the net loss in order to determine cash flow from operations. The cash from operating activities detail is provided as follows for class discus- sion: CONTINENTAL AIRLINES, INC. Cash Flows from Operating Activities (Selected from Statement of Cash Flows) (in millions) CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) ................................................................................. $ (68) Adjustments to reconcile net income (loss) to net cash flow provided by operating activities: Depreciation and amortization ............................................................ 389 Special charges .................................................................................... 67 Gain on disposition of investments .................................................... (204) Undistributed equity in the income of other companies ................... (62) Other, net .............................................................................................. (18) Changes in certain assets and liabilities: Decrease (increase) in accounts receivable ................................... (56) Decrease (increase) in spare parts and supplies ........................... (7) Decrease (increase) in prepaid expenses ....................................... (59) Increase (decrease) in accounts payable ....................................... 80 Increase (decrease) in air traffic liability ......................................... 318 Increase (decrease) in other liabilities ............................................ 77 Net cash provided by (used in) operating activities ............................... $457 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Ex. 16–2 a. Cash receipt, $198,000 b. Cash payment, $280,000 c. Cash receipt, $500,000 d. Cash payment, $60,000 e. Cash payment, $260,000 f. Cash payment, $320,000 g. Cash payment, $42,000 h. Cash receipt, $72,000 Ex. 16–3 a. financing b. financing c. financing d. investing e. operating f. financing g. financing h. investing i. investing j. investing k. financing Ex. 16–4 a. added b. added c.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern