Deriving direct method presentation of cash flow from operations using data from the T-account work sheet. Refer
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Deriving direct method presentation of cash flow from operations using data from the T-account work sheet. Refer to the data in Exhibit 15.6 for Metals Company for 2009. Derive a presentation of cash flow from operations using the directmethod.
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Metals Company EXHIBIT 15.6 (Problem 4) Income Statement for 2009 (all doliar amounts in millions) Sales Revenues $20,465.0 Gain on Sale of Marketable Securities 20.8 Equity in Earnings of Affiliates. 214.0 Total Revenues and Gains . $20,699.8 Cost of Goods Sold. $ 9,963.3 General and Administrative Expenses Interest Expense .. Income Tax Expense. Total Expenses Net Income 5,570.2 2,887,3 911.6 $19,332.4 $ 1,367.4 Statement of Cash Flows for 2009 (all dollar amounts in millions) OPERATIONS (1) Net Income Adjustments for Noncash Transactions: (2) Depreciation (3) Increase in Deferred Tax Liability.. (4) Equity in Undistributed Earníngs of Affiliates (5) Gain from Sale of Marketable Securities Available for Sale (6) (Increase) Decrease in Accounts Receivable (7) (Increase) Decrease in Inventories... (8) (Increase) Decrease in Prepayments. (9) Increase (Decrease) in Accounts Payable for Inventory (10) Increase (Decrease) in Other Current Liabilities Cash Flow from Operations.... $ 1,367.4 664.0 82.0 (47.1) (20.8) 74.6 (198.9) (40.3) 33.9 (110.8) $ 1,804.0 INVESTING (11) Sale of Marketable Securities Available for Sale (12) Acquisition of Marketable Securities Available for Sale .. (13) Acquisition of Property, Plant, and Equipment . (14) Acquisition of Subsidiaries ... Cash Flow from Investing .. 49.8 (73.2) (875.7) (44.5) $ (943.6) FINANCING (15) Common Stock Issued to Employees .. (16) Repurchase of Common Stock. (17) Dividends Paid to Shareholders (18) Additions to Short-Term Borrowing (19) Additions to Long-Term Debt (20) Payments on Long-Term Debt Cash Flow from Financing Change in Cash. 34.4 (100.9) (242.9) 127.6 121.6 (476.4) S (536.6) 323.8 Cash, Beginning af Year 506.8 Cash, End of Year, 830.6 SUPPLEMENTARY INFORMATION (21) Acquisition of Property, Plant, and Equipment by Mortgaged Borrowing . (22) Acquisition of Property, Plant, and Equipment by Capital Leases... (23) Conversion of Debt into Common Stock (24) Other Current Liabilities represents obligations for General and Administrative Expenses. 76.9 98.2 47.8
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Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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