P-15-05 Name:

Section:

Enter the appropriate amount or item in the shaded cells. Use the drop-down lists when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Enter any cash outflows and deductible values with minus sign.

1. Yong Company
Statement of Cash Flows
For the Year Ended December 31, 2014

Cash flows from operating activities:

Adjustments to reconcile net income to net

cash flows from operating activities:

Changes in current assets and current liabilities:

Net cash flows from operating activities

Cash flows from investing activities:

Net cash flows from investing activities

Cash flows from financing activities:

Net cash flows from financing activities

Net in cash

Schedule of Noncash Investing and Financing Transactions

3.

Cash Flow Yield =

= times

Free Cash Flow =

P-15-05_Sol. Name: Solution
Section:

Enter the appropriate amount or item in the shaded cells. Use the drop-down lists when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Enter any cash outflows and deductible values with minus sign.

1. Yong Company
Statement of Cash Flows
For the Year Ended December 31, 2014

Cash flows from operating activities:

Net income $ 11,000
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation $ 46,800
Gain on sale of furniture and fixtures (7,000)
Changes in current assets and current liabilities:
Decrease in accounts receivable 34,800
Decrease in merchandise inventory 100,000
Decrease in prepaid rent 1,000
Decrease in accounts payable (57,000)
Decrease in income taxes payable (3,000) 115,600
Net cash flows from operating activities $ 126,600

Cash flows from investing activities:

Sale of furniture and fixtures $ 13,800
Purchase of furniture and fixtures (39,600)
Net cash flows from investing activities (25,800)

Cash flows from financing activities:

Repayment of notes payable $ (20,000)
Issue of notes payable 40,000
Payment of dividends (6,000)
Net cash flows from financing activities 14,000

Net increase in cash $ 114,800

Cash at beginning of year 50,000
Cash at end of year $ 164,800

Schedule of Noncash Investing and Financing Transactions

Conversion of bonds into com. stock $ 100,000

3.

Cash Flow Yield =

$ 126,600 / $ 11,000 = 11.5 times

Free Cash Flow = $ 94,800