ACCOUNTING CHAPTER 12 ASSIGNMENT WILEY PLUS

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Exercise 12-8 (Part Level Submission)
Shown below are comparative balance sheets for Schmitt Company.

SCHMITT COMPANY
Comparative Balance Sheets
December 31
Assets
 
2014
  
2013
 
Cash 
$ 89,080
  
$ 28,820
 
Accounts receivable 
115,280
  
99,560
 
Inventory 
218,770
  
247,590
 
Land 
104,800
  
131,000
 
Equipment 
340,600
  
262,000
 
Accumulated depreciation—equipment 
(86,460
)
 
(41,920
)
Total 
$782,070
  
$727,050
 
Liabilities and Stockholders’ Equity
      
Accounts payable 
$ 51,090
  
$ 56,330
 
Bonds payable 
196,500
  
262,000
 
Common stock ($1 par) 
282,960
  
227,940
 
Retained earnings 
251,520
  
180,780
 
Total 
$782,070
  
$727,050
 

Additional information:

1. Net income for 2014 was $121,830.
2. Depreciation expense was $44,540.
3. Cash dividends of $51,090 were declared and paid.
4. Bonds payable amounting to $65,500 were redeemed for cash $65,500.
5. Common stock was issued for $55,020 cash.
6. No equipment was sold during 2014.
7. Land was sold for its book value.

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)). 

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

(1) Current cash debt coverage.

 

2) Cash debt coverage.

 

 

Condensed financial data of Odgers Inc. follow.

ODGERS INC.
Comparative Balance Sheets
December 31
Assets
 
2014
  
2013
 
Cash 
$ 180,184
  
$ 107,932
 
Accounts receivable 
195,794
  
84,740
 
Inventory 
250,875
  
229,356
 
Prepaid expenses 
63,332
  
57,980
 
Long-term investments 
307,740
  
243,070
 
Plant assets 
635,550
  
540,775
 
Accumulated depreciation 
(111,500
)
 
(115,960
)
Total 
$1,521,975
  
$1,147,893
 
       
Liabilities and Stockholders’ Equity
      
Accounts payable 
$ 227,460
  
$ 150,079
 
Accrued expenses payable 
36,795
  
46,830
 
Bonds payable 
245,300
  
325,580
 
Common stock 
490,600
  
390,250
 
Retained earnings 
521,820
  
235,154
 
Total 
$1,521,975
  
$1,147,893
 

 

ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue   
$866,266
Less:    
     Cost of goods sold 
$302,076
  
     Operating expenses, excluding depreciation 
27,674
  
     Depreciation expense 
103,695
  
     Income tax expense 
60,834
  
     Interest expense 
10,548
  
     Loss on disposal of plant assets 
16,725
 
521,552
Net income   
$ 344,714


Additional information:

1. New plant assets costing $223,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $128,225 and accumulated depreciation of $108,155 were sold for $3,345 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $58,048 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).)

 

 

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