Chapter 11

Ans 11.1 Particulars $

Sales in 2009 8743000

(-) Change in AR 70000

Cash generated from sales 8673000

Ans 11.2 1) Twelve month note in return of $2 million cash is a financing source of cash. Use of $2 million cash to p
2) Cash proceeds from common stock is a financing source of cash to retire mortgage bonds is a financing
3) No cash effect
4) No cash effect
5) Cash from sales of machinery is an investment use of cash.

Ans 11.3 Kids 'n Caboodle

Statement of cash flows

Particulars $

Cash received from customer 155000

Cash used in operations -146900
Cash from operations 8100

Equipment -10500
Cash used for maintenance -10500

Loan 21000
Cash from financing 21000

Increase in cash 18600

Ans 11.4 Particulars $

Net Loss -11000

Depreciation 26400
15400

Accounts receivable (reduced) 17600

Accounts receivable (increased) 8800
Accrued salaries (increased) 3300
Other accruals (increased) 2200

Cash flow from operations 47300

 Investments 0

Long-term debt (reduced) -29700

Change in cash 17600
Beginning cash 4400
Ending cash 22000

Ans 11.5 Particulars $

Operating Activities
Cash received from customers 62100
Interest received 345
Operating cash payments -54165
Interest payment -1035

Net cash received by operations 7245

Investing activities
Sale of old machine 3105
Down payment on new truck -3450

Net cash used in investing activities -345

Financing Activities

Payments of debt -3450

Net cash used in financing activities -3450

Answe to case 11.2 AMERBRAN COMPANY

Statement of cash flows
For the year ended December 31, 20x1
(in 1000s)

Net cash flow from operating activities:

Net income
Non cash items included in income:
Depreciation and amortization
Deferred taxes
Net change in receivables,inventories and payables
Write-off of obsolete equipment
Income from subsidiary
Net cash flow from operating activities
Cash flows from investing activities

Acquisitions of property, plant, and equipment

Proceeds from disposals
Acquisitions of company
Net cash used by investing activities

Cash flow from financing activities

Increase in short term debt

Decreae in long term debt
Dividends paid
Purchase of treasury stock
Net cash used by financing activities
Cash flows from misc. activities
Net increase in cash
Cash at beginning of year
Cash at end of year
 cash. Use of $2 million cash to purchase equipment is an investment of cash.
re mortgage bonds is a financing use of cash.
 $

328773

115974
-17548
140493
66046
-59610
574128
-260075
33162
-133721
-360634

79664
-34606
-216158
-30609
-201709
-6825
4960
23952
28912