accounting homework help

profilejacgos1103

 

 
Brief Exercise 5-12
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]
 
 
 
 
Brief Exercise 5-13
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]
 
 
 
 
Brief Exercise 5-15
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]
 
 
 
 
Exercise 5-13
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]
 
 
 
 
Exercise 5-14
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]
 
 
 
 
Exercise 5-16 (Part Level Submission)
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.
 
 
(a)
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
 
 
(b)
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]
.
 
 
 
 
Exercise 5-18 (Part Level Submission)
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  $7,215Inc.
Accounts receivable 107,596  89,381  18,215Inc.
Equipment 40,596  23,381  17,215Inc.
Less: Accumulated Depreciation-Equipment (17,000) (11,000) 6,000Inc.
    Total $152,788  $116,143     
Liabilities and Stockholders’ Equity         
Accounts payable $21,596  $16,381  5,215Inc.
Common stock 101,596  81,381  20,215Inc.
Retained earnings 29,596  18,381  11,215Inc.
    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.
 
 
(a)
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]
 
 
(b)
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]
 
 
(c)
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.
 
 
 
 
IFRS Practice Question 1
Which of the following statements about IFRS and GAAP accounting and reporting requirements for the balance sheet is not correct?


Both IFRS and GAAP distinguish between current and non-current assets and liabilities.

The presentation formats required by IFRS and GAAP for the balance sheet are similar.

Both IFRS and GAAP require that comparative information be reported.

One difference between the reporting requirements under IFRS and those of the GAAP balance sheet is that an IFRS balance sheet may list long-term assets first.
 
 
 
 
 
IFRS Practice Question 2
Current assets under IFRS are listed generally:


by importance.

in the reverse order of their expected conversion to cash.

by longevity.

alphabetically.
 
 
 
 
 
IFRS Practice Question 3
Companies that use IFRS:


may report all their assets on the statement of financial position at fair value.

are not allowed to net assets (assets 2 liabilities) on their statement of financial positions.

may report non-current assets before current assets on the statement of financial position.

do not have any guidelines as to what should be reported on the statement of financial position.
 
 
 
 
 
IFRS Practice Question 4
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?


$365,000.

$325,000.

$690,000.

$0.
 
 
 
 
 
IFRS Practice Question 5
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:


land expense.

property, plant, and equipment.

an intangible asset.

a long-term investment.
    • 8 years ago
    • 20
    Answer(1)

    Purchase the answer to view it

    blurred-text
    NOT RATED