Matakuliah
Tahun
: V0282 - Manajemen Akuntansi Hotel
: 2009 - 2010
PERTEMUAN 5
Chapter 5
The Statement of Cash Flows
Allisha McKay has compiled the sources and uses of funds
information she needs, she is ready to prepare The Fred
Proffet Company’s Statement of Cash Flows for the Year
Ended 2012. Help her complete the company’s Statement of
Cash Flows by using the information taken from the following
Condensed Income Statement and Statement of Retained
Earnings for 2012, and 2011 and 2012 Balance Sheets.
Answer the question that follow:
Bina Nusantara University
3
THE FRED PROFFET COMPANY
Condensed Income Statement and Statement of Retained Earnings
For the Period: January 1 trough December 31,2012
Income Statement
Sales
$ 5,200,000
Cost of sales
1,560,000
Gross Profit
3,640,000
Operating Expenses (excluding depreciation)
2,860,000
Depreciation
105,000
Operating Income
675,000
Interest
242,000
Income Before Income Taxes
433,000
Income Taxes (40%)
173,000
Net Income
260,000
Statement of Retained Earnings
Retained Earnings, December 31, 2011
1,146,000
Net Income for 2012
260,000
Subtotal
1,406,000
Cash Dividends Pain in 2012
156,000
Retained Earnings, December 31, 2012
1,250,000
THE FRED PROFFET COMPANY
Statement of Cash Flows
December 31,2012
Net cash Flow from Operating Activities
Net Income
Adjustments to reconcile net income to net cash flows
from operating activities
Depreciation
Increase in Net Receivables
Decrease in Net Inventories
Decrease in Account Payable
Decrease in Other Current Liabilities
Net Cash Flow from Operating Activities
Net Cash Flow from Investing Activities
Decrease in Marketable Securities
Increase in property and Equipment
Net Cash Flow from Operating Activities
Net Cash flow from Financing Activities
Decrease in Notes Payable
Increase in Long term Debt
Increase in capital Stock
( Common Stock + Paid in Capital)
Dividends Paid
Net Cash flow from Financing Activities
Net Increase in Cash during 2012
Cash at the beginning of 2012
Cash at the end of 2012
Supplementary Disclosure of Cash Flow Information
Cash paid during the year for
Interest
Income Taxes
a. Did the change in Cash reflect a Source or a Use of
funds? What was the amount of that change?
b. Did the change in Net Receivables reflect a Source or a
Use of funds? What was the amount of that change?
c. Did the change in Notes Payable reflect a Source or a
Use of funds? What was the amount of that change?
d. Did the change in Retained Earnings reflect a Source or
a Use of Funds? What was the amount of that change?
e. What was the total amount of Source and uses of
Funds?