Using the Excel Answer Sheet, prepare responses to Problem Sets P2-6A (Page 85-86), and P13-2A (Page 731-732), from Chapter 2 and 13 of Financial Accounting: Tools for business decision making (6th ed.) by John Wiley & Sons.

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Home>Business & Finance homework help>Accounting homework help>Using the Excel Answer Sheet, prepare responses to Problem Sets P2-6A (Page 85-86), and P13-2A (Page 731-732), from Chapter 2 and 13 of Financial Accounting: Tools for business decision making (6th ed.) by John Wiley & Sons.

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Accounting 300 Week 4 Individual Assignment Answer Sheet
Student Name:
Prepare responses to Problem Sets P2-6A (Page 85-86), and P13-2A (Page 731-732), from Chapter 2 and 13 of Financial Accounting: Tools for business decision making (6th ed.) by John Wiley & Sons. Out of 15 Points
P2-6A Condensed balance sheet and income statement data for Sievert Corporation
SIEVERT CORPORATION Balance Sheets December 31
Assets 2012 2011
Cash $28,000 $20,000
Receivables (net) 70,000 62,000
Other current assets 90,000 73,000
Long-term investments 62,000 60,000
Plant and equipment (net) 510,000 470,000
Total assets $760,000 $685,000
Liabilities and Stockholders’ Equity
Current liabilities 75,000 70,000
Long-term debt 80,000 90,000
Common stock 330000 300000
Retained earnings 275000 225000
Total liabilities and stockholders’ equity 760,000 685,000
SIEVERT CORPORATION Income Statement For the Years Ended December 31
2012 2011
Sales $750,000 $680,000
Cost of goods sold 440,000 400,000
Operating expenses (including income taxes) 240,000 220,000
Net income $70,000 $60,000
Additional information:
Cash from operating activities $82,000 $56,000
Cash used for capital expenditures $45,000 $38,000
Dividends paid $20,000 $15,000
Average number of shares outstanding 33,000.00 30,000.00
Instructions
Compute these values and ratios for 2011 and 2012. Answers must also include formulas and calculations.
Answers
(a) Earnings per share. 2011 2012 Evaluation/Comment Points Earned
Formula/Calculation 1.20
(b) Working capital. 2011 2012 Evaluation/Comment Points Earned
Formula/Calculation 1.20
(c) Current ratio. 2011 2012 Evaluation/Comment Points Earned
Formula/Calculation 1.20
(d) Debt to total assets ratio. 2011 2012 Evaluation/Comment Points Earned
Formula/Calculation 1.20
(e) Free cash flow. 2011 2012 Evaluation/Comment Points Earned
Formula/Calculation 1.20
(f ) Based on the ratios calculated, discuss briefly the improvement or lack thereof in
financial position and operating results from 2011 to 2012 of Sievert Corporation. Evaluation/Comment Points Earned
0.60
P13-2A The comparative statements of Lucille Company
LUCILLE COMPANY Income Statements For the Years Ended December 31
2012 2011
Net Sales $1,890,540 $1,750,500
Cost of goods sold 1,058,540 1,006,000
Gross profi 832,000 744,500
Selling and administrative expenses 500,000 479,000
Income from operations 332,000 265,500
Other expenses and losses
Interest expense 22,000 20,000
Income before income taxes $310,000 $245,500
Income tax expense 92,000 73,000
Net income $218,000 $172,500
LUCILLE COMPANY Balance Sheet December 31
Assets 2012 2011
Current assets
Cash $60,100 $64,200
Short-term investments 74,000 50,000
Accounts receivable 117,800 102,800
Inventory 126,000 115,500
Total current assets 377,900 332,500
Plant assets (net) 649,000 520,300
Total assets $1,026,900 $852,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable 160,000 145,400
Income taxes payable 43,500 42,000
Total current liabilities 203,500 187,400
Bonds payable 220,000 200,000
Total liabilities 423,500 387,400
Stockholders’ equity
Common stock ($5 par) 290000 300000
Retained earnings 313400 165400
Total stockholders’ equity 603400 465400
Total liabilities and stockholders’ equity 1,026,900 852,800
All sales were on account. Net cash provided by operating activities for 2012 was $220,000.
Capital expenditures were $136,000, and cash dividends were $70,000.
Instructions
Compute the following ratios for 2012. Answers must also include formulas and calculations.
(a) Earnings per share. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(b) Return on common stockholders’ equity. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(c) Return on assets. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(d) Current ratio. 2012 Evaluation/Comment Points Earned
0.60
(e) Receivables turnover. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(f ) Average collection period. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(g) Inventory turnover. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(h) Days in inventory. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(i) Times interest earned. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(j) Asset turnover. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(k) Debt to total assets. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(l) Current cash debt coverage. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(m) Cash debt coverage. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60
(n) Free cash flow. 2012 Evaluation/Comment Points Earned
Formula/Calculation 0.60

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