Fall 2013 ACCT 4111 Section: 010
Extra Credit Assignment
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 â€œcash received from
customersâ€ in your cash flow statement, label this item as â€œAâ€ or â€œ1â€ in the margin and also
label the calculations that correspond to this number as â€œAâ€ or â€œ1â€ 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 â€“ 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 â€“ direct
2 points for the Operating Activities â€“ 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.
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 â€“ 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.
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
1. All equipment/furniture purchases are made using cash. There were no disposals during
2. Land that originally cost $14,000 was sold for $9,800.
3. Short-term investments are not classified as a cash equivalent and are non-trade related.
Any purchases or sales are made in cash.
4. Long-term notes payable and bonds payable are shown in the balance sheet at their face
value and indicate repayments or issuances as appropriate.
5. Cash dividends were paid to shareholders during the year.
Green Lantern Company
December 31, 2012 and 2011
($ in 000s)
Total Current Assets
Property Plant and Equipment
Equipment and Furniture
Less: Accumulated Depreciation
Net Property Plant and Equipment
$ (105.0) $ 455.0
Income Tax Payable
Total Current Liabilities
Total Long-term Liabilities
Paid in Capital – excess of par
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
$ (161.0) $
Green Lantern Company
For Year Ended December 31, 2012
($ in 000s)
Cost of Goods Sold
Loss on Sale of Land
Income Tax Expense
$ 98.0 $ (420.0)