Description / Instructions: Complete the following Week 5 Assignment in WileyPLUS: * Exercise 7-3 * Exercise 12-1 * Exercise 12-8 * Problem 12-9A * Problem 12-10A * Exercise 13-3 * Exercise 13-4 * IFRS 13-1 * Problem 13-2A 

Exercise 12-1

Question 1Putnam Corporation had these transactions during 2014.

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

(a) Purchased a machine for $30,000, giving a long-term note in exchange.      (b) Issued $50,000 par value common stock for cash.      (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.      (d) Declared and paid a cash dividend of $13,000.      (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.      (f) Collected $16,000 of accounts receivable.      (g) Paid $18,000 on accounts payable. 

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Exercise 12-8

Question 2Shown below are comparative balance sheets for Schmitt Company.
SCHMITT COMPANY

Comparative Balance Sheets

December 31

Assets 
2014  
2013 Cash $ 68,000  $ 22,000 Accounts receivable 88,000  76,000 Inventory 167,000  189,000 Land 80,000  100,000 Equipment 260,000  200,000 Accumulated depreciation—equipment (66,000) (32,000)Total $597,000  $555,000 
Liabilities and Stockholders’ Equity      Accounts payable $ 39,000  $ 43,000 Bonds payable 150,000  200,000 Common stock ($1 par) 216,000  174,00 Retained earnings 192,000  138,000 Total $597,000  $555,000 

Additional information:

1. Net income for 2014 was $93,000.2. Depreciation expense was $34,000.3. Cash dividends of $39,000 were declared and paid.4. Bonds payable amounting to $50,000 were redeemed for cash $50,000.5. Common stock was issued for $42,000 cash.6. No equipment was sold during 2014.7. Land was sold for its book value.

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Ok  Cancel   Prepare a statement of cash flows for 2014 using the indirect method.
(Show amounts that decrease cash flow with either a – sign e.g. -15,000, or in parenthesis e.g. (15,000)).
SCHMITT COMPANY

Statement of Cash Flows

For the Year Ended December 31, 2014

   $Adjustments to reconcile net income to    $                              $

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Ok  Cancel   Compute these cash-based ratios:
(Round ratios to 2 decimal places, e.g. 2.56.)

(1) Current cash debt coverage.

Current cash debt coverage  times

(2) Cash debt coverage.

Cash debt coverage  times

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Exercise 13-3

Question 3Here is financial information for Spangles Inc.  
December 31, 2014 
December 31, 2013Current assets $106,000 $ 90,000Plant assets (net) 400,000 350,000Current liabilities 99,000 65,000Long-term liabilities 122,000 90,000Common stock, $1 par 130,000 115,000Retained earnings 155,000 170,000

Prepare a schedule showing a horizontal analysis for 2014, using 2013 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

SPANGLES INC.

Condensed Balance Sheet

December 31

       
Increase or (Decrease)  
2014 
2013  
Amount 
Percentage
Assets          Current Assets $106,000 $90,000  $ %Plant assets (net) 400,000 350,000   %
   Total assets $506,000 $440,000  $ %
Liabilities          Current Liabilities $99,000 $65,000  $ %Long-term liabilities 122,000 90,000   %
   Total liabilities $221,000 $155,000  $ %
Stockholders’ Equity          Common stock, $1 par 130,000 115,000   %Retained earnings 155,000 170,000   %   Total stockholders’ equity 285,000 285,000   %
   Total liabilities and stockholders’ equity $506,000 $440,000  $ %

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Exercise 13-4

Question 4Operating data for Jacobs Corporation are presented below.  
2014 
2013Sales revenue $800,000 $600,000Cost of goods sold 520,000 408,000Selling expenses 120,000 72,000Administrative expenses 60,000 48,000Income tax expense 30,000 24,000Net income 70,000 48,000

Prepare a schedule showing a vertical analysis for 2014 and 2013. (Round percentages to 1 decimal place, e.g. 12.1%.)

JACOBS CORPORATION

Condensed Income Statement

For the Years Ended December 31

 
2014 
2013 
Amount 
Percent 
Amount 
PercentSales$800,000 % $600,000 %Cost of goods sold520,000 % 408,000 %Gross profit280,000 % 192,000 %Selling expenses120,000 % 72,000 %Administrative expenses60,000 % 48,000 %Total operating expenses180,000 % 120,000 %Income before income taxes100,000 % 72,000 %Income tax expense30,000 % 24,000 %Net income$ 70,000 % $ 48,000 %

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IFRS 13-1

Question 5Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.
LING COMPANY

Statement of Comprehensive Income

For the Year Ended December 31, 2014

  $                      $ 

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Problem 12-9A

Question 6Condensed financial data of Odgers Inc. follow.
ODGERS INC.

Comparative Balance Sheets

December 31

Assets 
2014  
2013 Cash $ 80,800  $ 48,400 Accounts receivable 87,800  38,000 Inventory 112,500  102,850 Prepaid expenses 28,400  26,000 Long-term investments 138,000  109,000 Plant assets 285,000  242,500 Accumulated depreciation (50,000) (52,000)Total $682,500  $514,750        
Liabilities and Stockholders’ Equity      Accounts payable $ 102,000  $ 67,300 Accrued expenses payable 16,500  21,000 Bonds payable 110,000  146,000 Common stock 220,000  175,000 Retained earnings 234,000  105,450 Total $682,500  $514,750 
ODGERS INC.

Income Statement Data

For the Year Ended December 31, 2014

Sales revenue   $388,460Less:         Cost of goods sold $135,460       Operating expenses, excluding depreciation 12,410       Depreciation expense 46,500       Income tax expense 27,280       Interest expense 4,730       Loss on disposal of plant assets 7,500 233,880Net income   $ 154,580

Additional information:

1. New plant assets costing $100,000 were purchased for cash during the year.2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.3. Bonds payable matured and were paid off at face value for cash.4. A cash dividend of $26,030 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)

ODGERS INC.

Statement of Cash Flows

For the Year Ended December 31, 2014

   $Adjustments to reconcile net income to    $                                  $

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Problem 12-10A

Question 7Condensed financial data of Odgers Inc. follow.

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