Cash Flows from Operating Activities- Indirect Method

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ManagerialAccounting-Exercise13-16.xlsx
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Ex. 14(13)-16

Exercise 14(13)-16 # Incorrect N-box and B-box entries COUNTIF(B15:G24,"~*")
Name: 0
Section: # N-box Incorrects due to blanks COUNTIF(B15:AT24," ")
7
Score: 0% # N-box +B-box corrects COUNTIF(B15:AT24," ")
0
Key Code: [Key code here] Total SUM(AD13:AD15)
Instructions 7
Answers are entered in the cells with gray backgrounds. Percentage =(AD16-AD13-AD14)/AD16
Cells with non-gray backgrounds are protected and cannot be edited. 0%
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Notes:
If number-entry box is blank (this would be an incorrect answer for N-boxes), error check returns two spaces, " "
If number-entry or blank-entry box is incorrect, returns "*"
a. NATIONAL BEVERAGE CO. If number-entry or blank-entry box is correct, returns single space, " "
Cash Flows from Operating Activities Use data verification to set data entry to whole number >= 0, and use drop-downs for lables and names, so that students can't enter a space in a box and have it counted as correct.
(in thousands) Conditional formatting might be used but wasn't here, to hide some of the error check return symbols. If A1 = "~*", then font = red, if something else, then font = background color.
Cash flows from operating activities:
Net income Cash
Adjustments to reconcile net income to net cash Depreciation expense
flow from operating activities: Fees earned
Depreciation Insurance expense
Stock-based compensation expense (noncash) Miscellaneous expense
Losses on inventory write down and fixed assets Rent expense
Changes in current operating assets and liabilities: Supplies expense
Increase in accounts receivable Utilities expense
Increase in inventory Wages expense
Decrease in prepaid expenses
Decrease in accounts payable and other current liabilities
Net cash flow from operating activities
b.
[Key essay answer here]

Sol

Exercise 14(13)-16
Name: Solution
Section:
Score: ON
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Depreciation expense - building
a. NATIONAL BEVERAGE CO. Depreciation expense - equipment
Cash Flows from Operating Activities Insurance expense
(in thousands) Miscellaneous expense
Rent expense
Cash flows from operating activities: Rent revenue
Net income $ 43,993 Salary expense
Adjustments to reconcile net income to net cash
flow from operating activities: Service revenue
Depreciation 10,174 Supplies expense
Stock-based compensation expense (noncash) 290 Utilities Expense
Losses on inventory write down and fixed assets 7
Changes in current operating assets and liabilities: Wages expense
Increase in accounts receivable (5,679)
Increase in inventory (7,509)
Decrease in prepaid expenses 2,239
Decrease in accounts payable and other current liabilities (1,341)
Net cash flow from operating activities $ 42,174
b.
National Beverage is doing well financially. The company has positive earnings and positive net cash flow from operating activities. The company continues to grow, and the trend in recent years has been positive. The increase in accounts receivable is a positive sign, indicating an increase in sales. The increase in inventory supports this trend. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is generating enough cash from operations to pay for its inventory in cash. This is a healthy trend.