Built from comparative balances, one composite cold-storage operator's 87,000 net change is tied to cash and restricted cash in this AC302 Unit 4 statement of cash flows. Searches like "ac 302 unit 4 assignment example", "ac302 unit 4 sample" and "ac302 unit 4 example" land here.
What a finished AC302 Unit 4 statement of cash flows looks like
The statement runs to three pages. First comes a worksheet listing every balance sheet account with its change and the statement line that change feeds, or a mark sending it to the noncash schedule. The statement itself follows under a formal heading. Operating activities start from net income of 610,000 and add depreciation of 230,000, a 7,000 loss on refrigeration equipment and 22,000 of deferred taxes before six working capital lines, reaching 859,000. Investing shows 520,000 of new equipment, 38,000 of sale proceeds and 90,000 of bonds bought as available for sale, a net outflow of 572,000. Financing shows dividends paid of 140,000 and treasury shares of 60,000. Cash and restricted cash together move from 562,000 to 649,000. The last page holds the noncash schedule and the supplemental lines for interest and taxes paid.
How a AC302 Unit 4 example is structured
The worksheet comes first because the statement is derived rather than recorded, and every figure in it has to trace to an account. Two accounts are rebuilt before anything else: equipment, whose ending balance reflects both a purchase and a disposal, and retained earnings, which moved for net income, cash dividends declared and a stock dividend. Dividends payable then converts dividends declared into dividends paid. The statement follows in the standard order with a subtotal per section. Its ending line reconciles to cash plus restricted cash, the total ASC 230 has required since 2018, and a two-line note splits that total back into the balance sheet captions. Below, the noncash schedule reports land acquired for a 300,000 note and bonds of 200,000 converted into 8,000 shares, and one sentence explains why the stock dividend appears nowhere.
The account worksheet
Every balance sheet line with its change and destination. Equipment and retained earnings are rebuilt first, since each one hides more than a single event in the year.
Operating, 859,000
Net income plus depreciation, the disposal loss and deferred taxes, then receivables, inventory, prepaid costs, payables, accrued wages and taxes payable, each signed by its direction of change.
Equipment, bonds, dividends, treasury shares
Refrigeration equipment bought and sold, bonds acquired as available for sale; then cash dividends actually paid and shares repurchased into the treasury.
Proof to cash and restricted cash
Opening 562,000 plus 87,000 equals closing 649,000. A short reconciliation splits both totals between unrestricted cash and the reserve the operator's lender requires it to hold.
Outside the three sections
Land for a note and bonds converted into stock go to the noncash schedule. The stock dividend moved no resources and appears in neither place.
Where marks go in AC302 Unit 4
A statement that fails to tie fails on sight, and here a common cause is proving against unrestricted cash alone, which leaves a 30,000 gap equal to the rise in restricted cash. Dividends reported at the 150,000 declared, rather than the 140,000 paid, cost points, as does treating the stock dividend as a financing outflow. Running the bond conversion or the land purchase through investing and financing, instead of the noncash schedule, loses disclosure marks. The deferred tax line trips careful answers: 3,000 of the liability's rise belongs to the unrealized gain recorded in other comprehensive income, so adding back the full 25,000 overstates operating cash. Reporting the 7,000 loss as an investing inflow, instead of the 38,000 received, is penalized in most sections.
Get a AC302 Unit 4 example written to your instructions
Every figure in this statement traces to something your Unit 4 problem gives, so attach both balance sheets, the year's earnings and each note beneath them, because each note changes a line; include the rubric too. A worksheet, the statement and its noncash schedule return within 24-48h, proved to the cash total, with a first custom sample free.
AC302 Unit 4 questions, answered
Why is restricted cash included in the totals?
Since 2018, ASC 230 has required the statement to explain the change in cash, cash equivalents and restricted cash together, so a transfer into a restricted account is no longer a cash flow at all. The AC302 sample follows that rule and adds a short reconciliation to the balance sheet captions. Older textbook problems that treat restricted deposits as investing outflows are flagged where a section's materials still use them.
Where does the unrealized gain on the bonds go?
Nowhere on the statement. The gain raised the investment's carrying amount and other comprehensive income without any cash moving, so it is excluded, along with the deferred tax recorded on it. Only the 90,000 paid to buy the bonds appears, in investing. Leaving the gain out also explains why the investment's balance sheet change and the investing outflow differ by 12,000.
Does the stock dividend need a disclosure?
Not in the noncash schedule, which covers investing and financing activities that used no cash. A stock dividend only reclassifies equity, moving retained earnings into common stock and paid-in capital, so it involves no resources and no creditor. The statement of stockholders' equity reports it instead. The sample adds one sentence saying so, because graders sometimes test whether it was left out deliberately.