CHAPTER 1 Fe Focus on Ct Flows: Matching Cash Flow Statement tems to Categories “The flowing items were taken from a recent cash ow statement, Note that different companies use slighy diferent ies forte same item. Without refering to Exhibit 1-5, mark eae item inte is cash flow fom operating activities (0), investing activites (or financing activites (). Also place parentheses arcurd the ltr only iit isa cash tow. — (1) Purchases of propery, plant, nd equipment — 2) Cash received from customers 3) Cash paid for dividends to stocknolders cash pido suppliers — (5) Income taxes pa — (6) Cash psd to employees — (3) Cash proceed receive from tle of investment in another company — (8) Repayment of borrowings To practice with more exercises, go tothe text website at waw.mbhe.com/libbyBe, E113 tort 22-19 Identifying the Investing and Financing Activities Affecting Cash Flows Loz Starwood Hotes & Resorts Worldwide, Ic, is ne ofthe worlds aget hoe and leisure compan Starwood Hotels & conducts tusvess both drety aed hough 1% subsidies, inelning the following bot beans wide, tne, Steior, Four Points, W. Alb, The Lexar Collector, Le Mein, Element, West, and St. Reis© Resorts Worldwide, Ine. fcmaion adapted frm he company’s cet al stem! of ath lows indies the fl ving investing and financing activities during that year (simplified, in million of ella) CHAPTER 2 Investing ndFinncing Decionsand the Accounting System BT Adstionl borrowing fom banks sar Purchase of investments Sale of asets and investments assume sold at cost) Isetance of stock Purchase and renovation of properics Payment of deb principal Receipt of principal payment on ante receivable Require: For each ofthese indicate whether the activity is investing () of Financing (F) and the dcecton of the effects om cashflows (+ frinteases cash ~ for decreases cas).£3-6 103-4 Nolverine World Wide, Inc. Determining Financial Statement Effects of Various Transactions Wolverine World Wide, Inc, manufactures military, work, sport and casual footwear and leather acces- sores under a vanity of brand names, such as Hush Puppies, Wolverine, and Bates, toa global market “The following transactions accurred during a recent year Dollars are in thousands Issued common stock to investors for $4,083 cash (example. Purchased $878 418 of additional inventory on account Borrowed $11,000 Sold $1,409,068 of products 1o customers on account; cst ofthe products sold was $852,316. Paid cash dividends of $22,737 Purchased for cash $19,307 in addtional property, plant, and equipment Incurred $386,534 in selling expenses, paying unee-fourths in cash and owing the rest on account, Earned $370 interest on investments, reeiving 90 percent in cash Incurred $1.395 in interest expense to be paid at the begining of next yeas, Required: For each of the transactions, complete the tabulation, indicating the effect (+ for increase and ~ for eerease) of each transaction. (Remember that A = L + SE, R— E = NI, and NI affects SE through Retained Eamings.) Write NE if there is mo effect. Te fis transaction is provided as an example BALANCE SHEET. INCOME STATEMENT ‘Stockholders? Transaction _| Assets _| Liabitties | Equity | Revermes | Expenses | Net Income (atexample) | 414083 | NE sus | NE NE NECHAPTER 3 OperatingDecisons andthe Accounting yen YAY Recording Journal Entri ‘Sysco, formed in 1969, is North America’s largest marketer and distributor of food service prod ucts, serving approximately 400,000 restaurants, hotels, schools, hospitals, and other institutions ‘The following summarized transactions are typical of those that occured ina recent year (dollars sxe in millions) 3-7 Lo3-4 Syseo Corporation 4. Purchased plant and equipment for $636 in cash by Borrowed S181 from a bank, signing a short-term note Provided $39,323 in service to customers during the yea, received in cash Paid $32,074 cash accounts payable, ‘Purchased $32,305 inventory on account aid payroll, $3,500 during the yea. Received $30,043 on account pu by customers. Purchased and used fuel of $750 in delivery vehicles during the yar (pid for in cash. Declared an paid $597 in dividends forthe ye. j- Incurred $68 in wlity usage during the yea; paid $55 in cash and owed the rest on account th $28,588 on account and the rest Required For each ofthe transactions, prepare journal entries, Determine wheter the accounting equation remains ‘nalance and debits equal credits after each entry