Color legend

All numerical answers

Line item descriptions

P12-2A
a.

Change in Cash during 2013

b.
ARTIC COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities
Add (deduct) items to convert net income to cash basis

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

P12-2A

P12-2B
a.

Change in Cash during 2013

b.
SWEET COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities
Add (deduct) items to convert net income to cash basis

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

P12-2B

P12-4A
a.

Change in Cash during 2013

b.
RAINBOW COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities
Add (deduct) items to convert net income to cash basis

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

P12-4A

P12-4B
a.

Change in Cash during 2013

b.
TOWNE COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities
Add (deduct) items to convert net income to cash basis

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

P12-4B

P12-6A
a.

Change in Cash during 2013

b.
ARTIC COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

ws
1, 2013

P12-6A

P12-6B
a.

Change in Cash during 2013

b.
SWEET COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

ws
1, 2013

P12-6B

P12-8A
a.

Change in Cash during 2013

b.
RAINBOW COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

P12-8B
a.

Change in Cash during 2013

b.
TOWNE COMPANY
Statement of Cash Flows
For Year Ended December 31, 2013
Cash flow from operating activities

Cash provided by operating activities

Cash flow from investing activities

Cash used by investing activities

Cash flow from financing activities

Cash provided by financing activities

P12-9B
Analyzing Cash Flow Ratios
Molly Enterprises reported the following information for the past year of operations:

a.
b.
c.
d.
e.
f.

Transaction
Recorded credit sales of $10,000
Collected $9,000 owed from customers
Purchased $50,000 of equipment on
long-term credit
Purchased $65,000 of equipment for
cash
Paid $14,000 of wages with cash
Recorded utility bill of $11,500 that has
not been paid

Free
Cash Flow
$300,000

Operating-Cash
Flow-to-Current
Liabilities Ratio
1.2 times

For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect.

Operating-Cash
Flow-to-Capital
Expenditures
Ratio
4.0 times