Answer all Set A problems in attachment.

Problems: Set A P12-1A You are provided with the following transactions that took place during a recent fiscal year. Transaction Where Reported on Statement Cash Inflow, Outflow, or No Effect? 1. Recorded depreciation expense on the plant assets. 2. Recorded and paid interest expense. 3. Recorded cash proceeds from a sale of plant assets. 4. Acquired land by issuing common stock. 5. Paid a cash dividend to preferred stockholders. 6. Distributed a stock dividend to common stockholders. 7. Recorded cash sales. 8. Recorded sales on account. 9. Purchased inventory for cash. 10. Purchased inventory on account. Distinguish among operating, investing, and financing activities. (SO 2), C Instructions Complete the table, indicating whether each item (1) should be reported as an operating (O) activity, investing (I) activity, financing (F) activity, or as a noncash (NC) transaction reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach. P12-2A The following account balances relate to the stockholders' equity accounts of Patil Corp. at year-end. 2012 Common stock, 10,500 and 10,000 shares, respectively, for 2012 and 2011 2011 $160,800 $140,000 Preferred stock, 5,000 shares 125,000 125,000 Retained earnings 300,000 270,000 A small stock dividend was declared and issued in 2012. The market value of the shares was $8,800. Cash dividends were $20,000 in both 2012 and 2011. The common stock has no par or stated value. Determine cash flow effects of changes in equity accounts. (SO 4), AN Instructions 1. 2. 3. What was the amount of net income reported by Patil Corp. in 2012? Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2012. Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows. (a) Net income P12-3A $58,800 The income statement of Mazor Company is presented here. MAZOR COMPANYIncome StatementFor the Year Ended November 30, 2012 Sales $7,600,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,600,000 Total cost of goods sold 4,700,000 Gross profit 2,900,000 MAZOR COMPANYIncome StatementFor the Year Ended November 30, 2012 Operating expenses Selling expenses 450,000 Administrative expenses 700,000 Net income 1,150,000 $1,750,000 Additional information: 1. 3. 4. 5. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000. 2. Prepaid expenses increased $150,000 during the year. Accounts payable to suppliers of merchandise decreased $350,000 during the year. Accrued expenses payable decreased $100,000 during the year. Administrative expenses include depreciation expense of $110,000. Prepare the operating activities sectionindirect method. (SO 4), AP Instructions Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Mazor Company, using the indirect method. Cash from operations $1,940,000 *P12-4A Data for Mazor Company are presented in P12-3A. Prepare the operating activities sectiondirect method. (SO 6), AP Instructions Prepare the operating activities section of the statement of cash flows using the direct method. Cash from operations $1,940,000 P12-5A Retzlaff Company's income statement contained the condensed information below. RETZLAFF COMPANYIncome StatementFor the Year Ended December 31, 2012 Revenues $970,000 Operating expenses, excluding depreciation $614,000 Depreciation expense 55,000 Loss on sale of equipment 16,000 685,000 Income before income taxes 285,000 Income tax expense 56,000 Net income $229,000 Retzlaff's balance sheet contained the comparative data at December 31. 2012 2011 Accounts receivable $70,000 $60,000 Accounts payable 41,000 32,000 Income taxes payable 13,000 7,000 Accounts payable pertain to operating expenses. Prepare the operating activities sectionindirect method. (SO 4), AP Instructions Prepare the operating activities section of the statement of cash flows using the indirect method. Cash from operations $305,000 *P12-6A Data for Retzlaff Company are presented in P12-5A. Prepare the operating activities sectiondirect method. (SO 6), AP Instructions Prepare the operating activities section of the statement of cash flows using the direct method. Cash from operations $305,000 P12-7A Presented below are the financial statements of Helwany Company. HELWANY COMPANYComparative Balance SheetsDecember 31 Assets Cash 2012 2011 $ 35,000 $ 20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20,000 Property, plant, and equipment 60,000 78,000 (32,000) (24,000) Accumulated depreciation Total $111,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $ 19,000 $ 15,000 7,000 8,000 Bonds payable 17,000 33,000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 Income taxes payable Total $111,000 $108,000 HELWANY COMPANYIncome StatementFor the Year Ended December 31, 2012 Sales $242,000 Cost of goods sold 175,000 Gross profit Selling expenses Administrative expenses Income from operations 67,000 $18,000 6,000 24,000 43,000 HELWANY COMPANYComparative Balance SheetsDecember 31 Assets 2012 2011 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $ 32,000 Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale. Prepare a statement of cash flowsindirect method, and compute cashbased ratios. (SO 4, 5), AP Instructions 1. Prepare a statement of cash flows using the indirect method. 2. Compute these cash-based measures: 1. Current cash debt coverage ratio. 2. Cash debt coverage ratio. 3. Free cash flow. (a) Cash from operations $38,500 *P12-8A Data for Helwany Company are presented in P12-7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and purchases are on account. Prepare a statement of cash flowsdirect method, and compute cashbased ratios. (SO 5, 6), AP Instructions 1. Prepare a statement of cash flows for Helwany Company using the direct method. 2. Compute these cash-based measures: 1. Current cash debt coverage ratio. 2. Cash debt coverage ratio. 3. Free cash flow. (a) Cash from operations $38,500 P12-9A Condensed financial data of Lemere Inc. follow. LEMERE INC.Comparative Balance SheetsDecember 31 Assets 2012 2011 Cash $ 80,800 $ 48,400 87,800 38,000 112,500 102,850 28,400 26,000 Long-term investments 138,000 109,000 Plant assets 285,000 242,500 Accumulated depreciation (50,000) (52,000) Accounts receivable Inventory Prepaid expenses Total $682,500 $514,750 Liabilities and Stockholders' Equity Accounts payable $102,000 $ 67,300 16,500 21,000 Bonds payable 110,000 146,000 Common stock 220,000 175,000 Retained earnings 234,000 105,450 Accrued expenses payable Total $682,500 $514,750 LEMERE INC.Income Statement DataFor the Year Ended December 31, 2012 Sales $388,460 Less: Cost of goods sold $135,460 LEMERE INC.Comparative Balance SheetsDecember 31 Assets 2012 2011 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income taxes 27,280 Interest expense 4,730 Loss on sale of plant assets 7,500 Net income 233,880 $154,580 Additional information: 1. 3. 4. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash. Bonds payable matured and were paid off at face value for cash. A cash dividend of $26,030 was declared and paid during the year. Prepare a statement of cash flowsindirect method. (SO 4), AP Instructions Prepare a statement of cash flows using the indirect method. Cash from operations $176,930 *P12-10A Data for Lemere Inc. are presented in P12-9A. Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flowsdirect method. (SO 6), AP Instructions Prepare a statement of cash flows for Lemere Inc. using the direct method. Cash from operations $176,930 P12-11A The comparative balance sheets for Vanco Company as of December 31 are presented below. VANCO COMPANYComparative Balance SheetsDecember 31 Assets 2012 2011 Cash $ 68,000 $ 45,000 50,000 58,000 151,450 142,000 15,280 21,000 Land 145,000 130,000 Equipment 225,000 155,000 Accumulated depreciationequipment (45,000) (35,000) Buildings 200,000 200,000 Accumulated depreciationbuildings (60,000) (40,000) Accounts receivable Inventory Prepaid expenses Total $749,730 $676,000 Liabilities and Stockholders' Equity Accounts payable $ 44,730 $ 36,000 Bonds payable 300,000 300,000 Common stock, $1 par 200,000 160,000 Retained earnings 205,000 180,000 Total $749,730 $676,000 Additional information: 1. Operating expenses include depreciation expense of $42,000. 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were paid. 4. Net income for 2012 was $37,000. 5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash. 6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000. Prepare a statement of cash flowsindirect method. (SO 4), AP Instructions Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. Cash from operations $94,000 P12-12A You are provided with the following transactions that took place during the year. Transactions 1. 2. 3. 4. 5. Recorded credit sales $2,500. Collected $1,900 owed by customers. Paid amount owed to suppliers $2,750. Recorded sales returns of $500 and credited the customer's account. Purchased new equipment $5,000; signed a long-term note payable for the Free Cash Flow ($125,000) Current Cash Debt Coverage Ratio (0.5 times) Cash Debt Coverage Ratio (0.3 times) Transactions Free Cash Flow ($125,000) Current Cash Debt Coverage Ratio (0.5 times) Cash Debt Coverage Ratio (0.3 times) cost of the equipment. 6. Purchased a patent and paid $65,000 cash for the asset. Identify the impact of transactions on ratios. (SO 5), C Instructions For each transaction listed above, indicate whether it will increase (I), decrease (D), or have no effect (NE) on the ratios