ACCOUNTING CHAPTER 12 ASSIGNMENT WILEY PLUS
Waqas Ahmed (Not rated)
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1)
Exercise 12-8 (Part Level Submission) |
Shown below are comparative balance sheets for Schmitt Company.
Additional information:
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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