P21-3, p.

1169
National Intercable Company
Worksheet for Statement of Cash Flows (Indirect method)
Year Ended December 31, 2009
($ in millions)
12-31-08 Debit Credit
Cash 55 L 17
Accounts receivable 170 A 11
Allowance for uncollectible accounts -6 B
Prepaid Insurance 12 C
Inventory 165 D 5
Long-term investments 90 b 6c
Land 150
Buildings & equipment 270 f 80 e
Accumulated depreciation -75 e 15 E
Trademark 25 I
Accounts payable -45 F 15
Salaries payable -8 G 5
Deferred income tax liability -15 H
Lease liability f
Bonds payable -275 g 130
Discount on bonds payable 25 J
Common stock -290 h
Paid-in in excess of par -85 h
Preferred stock h
Retained earnings -163 i 30 K

Operating activities
Net income K 25
 Increase in accounts receivable A
Increase in allowance for uncollectible accounts B 2
Decrease in prepaid insurance C 5
Increase in inventory D
Depreciation expense E 25
Decrease in accounts payable F
Decrease in salaries payable G
Increase in deferred tax liability H 3
Trademark amortization I 1
Decrease in bond discount J 3
Extraordinary loss (tornado) e 45

Investing activities
Sale of long-term investments c 30
Share of net income of Central Fiber b

Financing activities
Payment of matured bonds g
Paid dividends i
Sale of common stock h 20
Paid in excess of par due to sale of common stock h 10
Sale of preferred stock h 50
Increase in cash L
Cash balance, January 1
Cash balance, December 31
533
hod)

Credit 12-31-09 Proof

72
181
-2 -8
-5 7
170
-30 66
150
-60 290
-25 -85
-1 24
-30
-3
-3 -18
-80 -80
-145
-3 22
-20 -310
-10 -95
-50 -50
-25 -158
 -11

-5

-15
-5

73

-6 24

-130
-30

-80
-17 17
55
72
-533
 National Intercable Company
Statement of Cash Flows (Indirect)
Year Ended December 31, 2009
($ in millions)
Cash flows from operating activities
Net income 25
Reconciliation from net income to operating
cash flow
Increase in Accounts receivable -11
Increase in allowance for uncollectible accounts 2
Decrease in prepaid insurance 5
Increase in inventory -5
Depreciation expense 25
Decrease in accounts payable -15
Decrease in salaries payable -5
Increase in deferred tax liability 3
Trademark amortization 1
Decrease in bond discount 3
Extraordinary loss (tornado) 45 73
Cash flows from investing activities
Sale of long-term investments 30
Share of net income of Central Fiber -6 24
Cash flows from financing activities
Payment of matured bonds -130
Paid dividends -30
Sale of common stock 20
Paid in excess of par due to sale of common stock 10
Sale of preferred stock 50 -80
Increase in cash 17
Cash balance, January 1 55
Cash balance, December 31 72
 Dux Company
Worksheet for Statement of Cash Flows (Direct method)
Year Ended December 31, 2009
($ in 000s)
12-31-08 Debit Credit
Cash 55 Z 17
Accounts receivable 170 A 11
Allowance for uncollectible accounts -6 H -2
Prepaid insurance 12 C -5
Inventory 165 D 5
Long-term investments 90 b 6c -30
Land 150
Buildings & equipment 270 f 80 e -60
Accumulated depreciation -75 e 15 G -25
Trademark 25 I -1
Accounts payable -45 E 15
Salaries payable -8 F 5
Deferred income tax liability -15 K -3
Lease liability f -80
Bonds payable -275 g 130
Discount on bonds payable 25 J -3
Common stock -290 h -20
Paid-in in excess of par -85 h -10
Preferred stock h -50
Retained earnings -163 i 30 X -25

Cash flows from operating activities

Received from customers
Sales revenue 320
 Increase in accounts receivable A -11
Received from investments
Investment revenue 15
Paid to suppliers
Cost of goods sold -125
Increase in inventory D -5
Decrease in accounts payable E -15
Paid for operating expenses
Salaries expense -55
Decrease in salaries payable F -5
Depreciation expense -25 G 25
Bad debt expense -7 H 2
Trademark amortization expense -1 I 1
Insurance Expense -13 C 5
Paid for interest
Bond interest expense -30
Decrease in bond discount J 3
Paid for taxes
Income tax expense -38
Increase in deferred income tax liability K 3

Cash flows from investing activities

Sale of long-term investments c 30
Gain on sale of long-term investments 5
Share of net income of Central Fiber Optics b -6

Cash flows from financing activities

 Retired and paid bonds g -130
Sold common stock h 20
Sold common stock in excess of par h 10
Sold preferred stock h 50
Paid cash dividends i -30
Net income X 41
Increase in cash Z -17
Cash balance, January 1
Cash balance, December 31
532 -533
12-31-09 Proof
72
181
-8
7
170
66
150
290
-85
24
-30
-3
-18
-80
-145
22
-310
-95
-50
-158
309

15

-145

-73

-27

-35

44

29
-80

-7
55
48
 National Intercable Company
Statement of Cash Flows (Direct)
Year Ended December 31, 2009
($ in millions)
Cash flows from operating activities
Received from customers 309
Received from investments 15
Paid to suppliers -145
Paid for operating expenses -73
Paid for interest -27
Paid for taxes -35 68

Cash flows from investing activities

Sale of long-term investments 30
Gain on share of long-term investment 5
Share of net income of Central Fiber Optics -6 29

Cash flows from financing activities

Retired and paid bonds -130
Paid dividends -30
Sold common stock 20
Sold common stock in excess of par 10
Sold preferred stock 50 -80
Increase in cash 17
Cash balance, January 1 55
Cash balance, December 31 72