Accounting Homework II
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acct_homework_2.docx
(1)
Putnam Corporation had these transactions during 2014.
(a) Purchased a machine for $30,000, giving a long-term note in exchange.
(b) Issued $50,000 par value common stock for cash.
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
(d) Declared and paid a cash dividend of $13,000.
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
(f) Collected $16,000 of accounts receivable.
(g) Paid $18,000 on accounts payable.
Instructions:
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.
(2)
The following information is available for Ramos Corporation for the year ended December 31, 2014.
|
Beginning cash balance |
$ 45,000 |
|
Accounts payable decrease |
3,700 |
|
Depreciation expense |
162,000 |
|
Accounts receivable increase |
8,200 |
|
Inventory increase |
11,000 |
|
Net income |
284,100 |
|
Cash received for sale of land at book value |
35,000 |
|
Cash dividends paid |
12,000 |
|
Income taxes payable increase |
4,700 |
|
Cash used to purchase building |
289,000 |
|
Cash used to purchase treasury stock |
26,000 |
|
Cash received from issuing bonds |
200,000 |
Instructions:
Prepare a statement of cash flows using the indirect method.
(3)
Suppose presented below is 2014 information for PepsiCo, Inc. and The Coca-Cola Company.
|
($ in millions) |
PepsiCo |
Coca-Cola |
|
Net cash provided by operating activities |
$ 6,796 |
$ 8,186 |
|
Average current liabilities |
8,772 |
13,355 |
|
Average total liabilities |
22,909 |
21,491 |
|
Net income |
5,979 |
6,906 |
|
Sales revenue |
43,232 |
30,990 |
|
Capital expenditures |
2,128 |
1,993 |
|
Dividends paid |
2,732 |
3,800 |
Instructions:
Using the cash-based measures presented in this chapter, compare the (a) liquidity and (b) solvency of the two companies.
(4)
The following information is available for Taliaferro Corp. for 2014.
|
Cash used to purchase treasury stock |
$ 48,100 |
|
Cash dividends paid |
21,800 |
|
Cash paid for interest |
22,400 |
|
Net income |
464,300 |
|
Sales revenue |
802,000 |
|
Cash paid for taxes |
99,000 |
|
Cash received from customers |
566,100 |
|
Cash received from sale of building (at book value) |
197,600 |
|
Cash paid for operating expenses |
77,000 |
|
Beginning cash balance |
11,000 |
|
Cash paid for goods and services |
279,100 |
|
Cash received from issuing common stock |
355,000 |
|
Cash paid to redeem bonds at maturity |
200,000 |
|
Cash paid to purchase equipment |
113,200 |
Instructions:
Prepare a statement of cash flows using the direct method.
