Cash flows from operating activities:

Net income
Depreciation $8,000
Increase in accounts receivable -7,000
Decrease in accounts payable -4,000
Net cash provided by operating activities
$44,000

-3,000
$41,000
Cash flows from operating activities:
Net income $55,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation $20,000
Increase in current assets other than cash -14,000
Decrease in current liabilities -19,000 -13,000
Net cash provided by operating activities $42,000
Cash flows from operating activities:
Net income $55,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation $20,000
Increase in current assets other than cash -14,000
Decrease in current liabilities -19,000 -13,000
Net cash provided by operating activities $42,000 1

Cash flows from investing activities:

Acquisition of equipment ($39,000)
Cash receipt from sale of land 34,000
Net cash used for investing activities ($5,000) 2

Cash flows from financing activities:

Cash receipt from issuance of common stock $30,000
Payment of cash dividends -6,100
Net cash provided by financing activities 23,900 3
Net increase in cash $60,900
A Beginning + Acquisitions − Depreciation = Ending

$67,000 + X − $5,600 = $78,000

X = $16,600

Beginning + Issuance − Payment = Ending

B

$15,000 + $5,300 − X = $9,000

X = $11,300
 EQUIPMENT

BEG 67000DEP 5600

ACQUISITION 16600END 78000

83600 83600

NOTES PAYABLE
PAYMENT 11300BEG 15000

END 9000ISSUANCE 5300

20300 20300
Cash flows from operating activities:
Net income $25,400
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation $5,600
Increase in accounts receivable -5,500
Increase in accounts payable 5,000 5,100
Net cash provided by operating activities $30,500

Cash flows from investing activities:

Acquisition of equipment
(from Short Exercise S 14-7) ($16,600)
Net cash used for investing activities -16,600

Cash flows from financing activities:

Payment of cash dividends $(11,900)*
Payment of note payable
(from Short Exercise S 14-7) -11,300
Cash receipt from issuance of note
payable (from Short Exercise S 14-7) 5,300
Cash receipt from issuance of common
stock ($22,000 −$17,000) 5,000
Net cash used for financing activities -12,900
Net increase in cash $1,000
Cash balance, December 31, 2011 3,800
Cash balance, December 31, 2012 $4,800
__________
* Retained Earnings (let X = Dividends)
Beginning +
$38,900 +
gs (let X = Dividends)
Net Income − Dividends = Ending
$25,400 − X = $52,400
X = $11,900*
 Minerals Plus, Inc.
Statement of Cash Flows
Year Ended September 30, 2012
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation
Decrease in accounts receivable
Increase in inventory
Increase in accounts payable
Decrease in accrued liabilities
Net cash provided by operating activities

Cash flows from investing activities:

Acquisition of plant assets
Cash receipt from sale of land
Net cash used for investing activities

Cash flows from operating activities:

Cash receipt from issuance of common stock
Payment of note payable
Payment of dividends
Net cash provided by financing activities
Net increase in cash
Cash balance, September 30, 2011
Cash balance, September 30, 2012

Noncash investing and financing activities:

Acquisition of plant assets by issuing note payable

Total noncash investing and financing activities

Plus, Inc.
Cash Flows
tember 30, 2012

$51,000

$26,000
18,000
-4,000
13,000
-13,000 40,000
$91,000

($100,000)
28,000
-72,000

$29,000
-18,000
-8,000
3,000
$22,000
8,000
$30,000
$18,000

$18,000
Cash dividends are $35,000*

* Retained earnings (let Dividends = X)

Net
Beginning + −
income
$44,000 + $61,000 −

Plant assets, net (let X = Book value sold)

Acquisitio
Beginning + −
ns
$104,000 + $28,000 −
Dividends = Ending
X = $70,000
X = $35,000

Book value
Depreciation − sold = Ending
$17,000 − X = $109,000
X = $ 6,000