accounting homework help

Keyser Beverage Company reported the following items in the most recent year.

Net income		$41,380
Dividends paid		5,500
Increase in accounts receivable		12,120
Increase in accounts payable		7,540
Purchase of equipment (capital expenditure)		8,990
Depreciation expense		6,540
Issue of notes payable		22,570

Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Keyser Beverage Company Statement of Cash Flows
[removed]
[removed]		$ [removed]
[removed]	[removed]
[removed]	[removed]
[removed]	[removed]
		[removed]
[removed]		[removed]
[removed]
[removed]		[removed]
[removed]
[removed]	$ [removed]
[removed]	[removed]
[removed]		[removed]
[removed]		$ [removed]

Compute free cash flow.
 

Free Cash Flow

$ [removed]

Ames Company reported 2014 net income of $155,280. During 2014, accounts receivable increased by $13,240 and accounts payable increased by $9,930. Depreciation expense was $45,960.

Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Ames Company Cash Flow Statement For the year 2014
[removed]
[removed]		$ [removed]
Adjustments to reconcile net income to
[removed]
[removed]	$ [removed]
[removed]	[removed]
[removed]	[removed]
		[removed]
[removed]		$ [removed]

Martinez Corporation engaged in the following cash transactions during 2014.

Sale of land and building		$182,550
Purchase of treasury stock		49,450
Purchase of land		39,100
Payment of cash dividend		90,170
Purchase of equipment		60,540
Issuance of common stock		149,680
Retirement of bonds		102,340

Compute the net cash used (provided) by financing activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Martinez Corporation Statement of Cash Flows( Partial) For the Year 2014
[removed]
[removed]		$ [removed]
[removed]		[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		$ [removed]

The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as:

1.		Operating activity-add to net income.
2.		Operating activity-deduct from net income.
3.		Investing activity.
4.		Financing activity.
5.		Reported as significant noncash activity

The transactions are as follows.

		Transactions		Classifications of Activities
(a)		Issuance of common stock.		[removed]
(b)		Purchase of land and building.		[removed]
(c)		Redemption of bonds		[removed]
(d)		Sale of equipment.		[removed]
(e)		Depreciation of machinery.		[removed]
(f)		Amortization of patent.		[removed]
(g)		Issuance of bonds for plant assets.		[removed]
(h)		Payment of cash dividends.		[removed]
(i)		Exchange of furniture for office equipment.		[removed]
(j)		Purchase of treasury stock.		[removed]
(k)		Loss on sale of equipment.		[removed]
(l)		Increase in accounts receivable during the year.		[removed]
(m)		Decrease in accounts payable during the year.		[removed]

The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2014 are as follows.

CONSTANTINE CAVAMANLIS INC. BALANCE SHEETS
		Dec. 31, 2014		Jan. 1, 2014		Inc./Dec.
Assets
Cash		$ 48,430		$ 14,450		$33,980	Inc.
Accounts receivable		95,880		89,450		6,430	Inc.
Equipment		43,880		23,450		20,430	Inc.
Less: Accumulated Depreciation-Equipment		18,450		12,450		6,000	Inc.
Total		$169,740		$114,900
Liabilities and Stockholders’ Equity
Accounts payable		$ 24,880		$ 16,450		8,430	Inc.
Common stock		103,430		81,450		21,980	Inc.
Retained earnings		41,430		17,000		24,430	Inc.
Total		$169,740		$114,900

Net income of $48,880 was reported, and dividends of $24,450 were paid in 2014. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2014. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Constantine Cavamanlis Inc. Statement of Cash Flows For the Year Ended December 31, 2014
[removed]
[removed]		$ [removed]
Adjustments to reconcile net income to
[removed]
[removed]	$ [removed]
[removed]	[removed]
[removed]	[removed]
		[removed]
[removed]		[removed]
[removed]
[removed]		[removed]
[removed]
[removed]	[removed]
[removed]	[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		$ [removed]

A comparative balance sheet for Shabbona Corporation is presented below.

		December 31
Assets		2014			2013
Cash		$ 72,627			$ 22,000
Accounts receivable		83,043			67,416
Inventory		181,043			190,416
Land		72,043			111,416
Equipment		258,957			198,584
Accumulated Depreciation-Equipment		(70,043	)		(43,416	)
Total		$597,670			$546,416
Liabilities and Stockholders' Equity
Accounts payable		$ 35,043			$ 48,416
Bonds payable		150,000			200,000
Common stock ($1 par)		214,000			164,000
Retained earnings		198,627			134,000
Total		$597,670			$546,416

Additional information:

1.		Net income for 2014 was $127,086.
2.		Cash dividends of $62,459 were declared and paid.
3.		Bonds payable amounting to $50,000 were retired through issuance of common stock.

Prepare a statement of cash flows for 2014 for Shabbona Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Shabbona Corporation Statement of Cash Flows For the Year Ended December 31, 2014
[removed]
[removed]		$ [removed]
Adjustments to reconcile net income to
[removed]
[removed]	$ [removed]
[removed]	[removed]
[removed]	[removed]
[removed]	[removed]
		[removed]
[removed]		[removed]
[removed]
[removed]	[removed]
[removed]	[removed]
[removed]		[removed]
[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		$ [removed]
[removed]
Issued common stock to retire $ [removed]  of bonds outstanding

Determine Shabbona Corporation’s current cash debt coverage ratio, cash debt coverage ratio, and free cash flow.(Round ratios to 2 decimal places., e.g. 0.67.)

Current cash debt coverage ratio		[removed]	:1
Cash debt coverage ratio		[removed]	:1
Free cash flow		$ [removed]

Comment on its liquidity and financial flexibility.

Shabbona has  [removed]  liquidity. Its financial flexibility is  [removed] .

The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2014 appear below.

MADRASAH CORPORATION BALANCE SHEETS
		Dec. 31, 2014			Jan. 1, 2014			Inc./Dec.
Assets
Cash		$21,596			$14,381			$7,215	Inc.
Accounts receivable		107,596			89,381			18,215	Inc.
Equipment		40,596			23,381			17,215	Inc.
Less: Accumulated Depreciation-Equipment		(17,000	)		(11,000	)		6,000	Inc.
Total		$152,788			$116,143
Liabilities and Stockholders’ Equity
Accounts payable		$21,596			$16,381			5,215	Inc.
Common stock		101,596			81,381			20,215	Inc.
Retained earnings		29,596			18,381			11,215	Inc.
Total		$152,788			$116,143

Net income of $45,596 was reported, and dividends of $34,381 were paid in 2014. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2014. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Madrasah Corporation Statement of Cash Flows For the Year Ended December 31, 2014
[removed]
[removed]		$ [removed]
Adjustment to reconcile net income to
[removed]
[removed]	$ [removed]
[removed]	[removed]
[removed]	[removed]
		[removed]
[removed]		[removed]
[removed]
[removed]		[removed]
[removed]
[removed]	[removed]
[removed]	[removed]
[removed]		[removed]
[removed]		$ [removed]
[removed]		[removed]
[removed]		$ [removed]

Compute the current ratio (current assets ÷ current liabilities) as of January 1, 2014, and December 31, 2014.(Round ratios to 1 decimal place., e.g. 4.5.)

		December 31, 2014		January 1, 2014
Current ratio		[removed]		[removed]

Compute free cash flow for the year 2014.

Free Cash Flow

$ [removed]

In light of the analysis in (part b), comment on Madrasah’s liquidity and financial flexibility.

Madrasah company has  [removed]  liquidity and  [removed]  financial flexibility.

Which of the following statements about IFRS and GAAP accounting and reporting requirements for the balance sheet is not correct?

Current assets under IFRS are listed generally:

Companies that use IFRS:

Franco Company uses IFRS and owns property, plant, and equipment with a historical cost of $5,000,000. At December 31, 2013, the company reported a valuation reserve of $690,000. At December 31, 2014, the property, plant, and equipment was appraised at $5,325,000. The valuation reserve will show what balance at December 31, 2014?

A company has purchased a tract of land and expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. Under IFRS, the land should be reported as: