ACCT 4111 Section: 010 Extra Credit Assignment

ACCT 4111

Fall 2013 ACCT 4111 Section: 010

Extra Credit Assignment

Instructions:

1. Prepare a cash flow statement using the information below. Use BOTH the direct and

indirect method to prepare the Operating Activities section (i.e., I expect to see 2 Operating

Activities sections, 1 Investing, and 1 Financing).

2. Each cash flow item in the statement should be appropriately labeled (use the naming

conventions used on the text).

3. Show all calculations / work used to prepare the 3 different sections of the cash flow

statement (this should be on a separate sheet). You will not receive credit for the

assignment if you do not show all work for each number.

4. Work should be neat and clearly labeled so that I can follow the calculations corresponding

to the cash flow item within the cash flow statement sections.

5. Be sure to clearly label and cross-reference each cash flow item on the statement to the

calculations that correspond to that cash flow item. E.g., if you have “cash received from

customers” in your cash flow statement, label this item as “A” or “1” in the margin and also

label the calculations that correspond to this number as “A” or “1” on your calculations

worksheet. In this way, I can easily find the calculations you performed for each item on

your cash flow statement.

6. Appropriately label the cash flow statement and the related sections – follow the format

used in the text.

7. This is not a group assignment. Individual work is expected. No points will be given if

submitted assignment is not your own work.

Points: Total of 10 Points

Points are allocated as follows:

4 points for the Operating Activities – direct

2 points for the Operating Activities – indirect

2 points for the Investing Activities, and

2 points for the Financing Activities

As agreed, points will NOT be awarded for partially correct work in each section. Each

section must be accurately completed in its entirety to receive the allocated points

(including showing related calculations or T accounts).

Due Date: No Exceptions

This assignment is due no later than 6am on Tuesday, November 26, 2013.

There are no exceptions. Late submissions will not be accepted.



1



Assignment Submission

Select 1 of 2 Ways to submit assignment:

1. The assignment may be submitted via email. Scanned images that are clearly legible and

submitted in PDF format will be accepted. Work in MSExcel or MSWord will also be

accepted – with clearly labeled pages/tabs (as appropriate).

2. Hardcopy slipped under my office door in RCB 5th Floor room 515 by the due date. Please

notify me ahead of time by email me if you choose this option. Note that access is

restricted to the RCB building after 7pm daily.



Assignment

In addition to the financial statements presented on the next pages, also find the notes below.

Use information as necessary from the notes and the financial statements to construct the cash

flow statement for the company for the year ending December 31, 2012

Notes:

1. All equipment/furniture purchases are made using cash. There were no disposals during

the year.

2. Land that originally cost $14,000 was sold for $9,800.

3. Short-term investments are not classified as a cash equivalent and are non-trade related.

Any purchases or sales are made in cash.

4. Long-term notes payable and bonds payable are shown in the balance sheet at their face

value and indicate repayments or issuances as appropriate.

5. Cash dividends were paid to shareholders during the year.



2



Green Lantern Company

Balance Sheet

December 31, 2012 and 2011

($ in 000s)

2012



2011



Assets

Current Assets

Cash

Accounts Receivable

Short-term Investments

Inventory

Total Current Assets

Property Plant and Equipment

Land

Equipment and Furniture

Less: Accumulated Depreciation

Net Property Plant and Equipment



$

$

$

$

$



58.8

102.2

56.0

105.0

322.0



$



70.0



$



84.0



609.0

679.0



$ 560.0

$ (105.0) $ 455.0

$ 539.0



$ 1,001.0



$ 805.0



Current Liabilities

Accounts Payable

Salaries Payable

Interest Payable

Income Tax Payable

Total Current Liabilities



$

$

$

$

$



39.2

2.8

7.0

12.6

61.6



$

$

$

$

$



Long-term Liabilities

Notes Payable

Bonds Payable

Total Long-term Liabilities



$

$

$



224.0

224.0



$ 42.0

$ 140.0

$ 182.0



Shareholders' Equity

Common Stock

Paid in Capital - excess of par

Retained Earnings

Total Shareholders' Equity



$

$

$

$



350.0

176.4

189.0

715.4



$

$

$

$



Total Liabilities and Shareholders' Equity



$ 1,001.0



Total Assets



$ 770.0

$ (161.0) $

$



$ 42.0

$ 105.0

$ 21.0

$ 98.0

$ 266.0



Liabilities



49.0

7.0

4.2

16.8

77.0



280.0

140.0

126.0

546.0



$ 805.0



3



Green Lantern Company

Income Statement

For Year Ended December 31, 2012

($ in 000s)



Revenues

Sales Revenue

Expenses

Cost of Goods Sold

Salaries Expense

Depreciation Expense

Interest Expense

Loss on Sale of Land

Income Tax Expense

Net Income



$ 532.0



$ 182.0

$ 63.0

$ 56.0

$ 16.8

$

4.2

$ 98.0 $ (420.0)

$ 112.0