FINANCIAL Accounting - easy exercises. Hello, All I need is for you to fill out the document attached and send it back to me. No need for explanations. Thank you! D.
Question 1 Pioneer Corporation had the transactions below during 2011. 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. (a) Issued $50,000 par value common stock for cash. (b) Purchased a machine for $30,000, giving a longterm note in exchange. (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 $18,000. (e) Sold a longterm 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. Click here if you would like to Show Work for this question Question 2 Here are comparative balance sheets for Taguchi Company. TAGUCHI COMPANY Comparative Balance Sheets December 31 Assets Cash 2011 2010 $73,000 $22,000 85,000 76,000 170,000 189,000 75,000 100,000 Equipment 260,000 200,000 Accumulated depreciation (66,000) (32,000) $597,000 $555,000 Accounts receivable Inventories Land Total Liabilities and Stockholders' Equity Accounts payable $39,000 $47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 216,000 174,000 Retained earnings 192,000 134,000 $597,000 $555,000 Total Additional information: 1. 2. 3. 4. 5. Net income for 2011 was $103,000. Cash dividends of $45,000 were declared and paid. Bonds payable amounting to $50,000 were redeemed for cash $50,000. Common stock was issued for $42,000 cash. No equipment was sold during 2011, but land was sold at cost. Complete the statement of cash flows for 2011 using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) TAGUCHI COMPANY Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Question 3 Financial information for Blevins Inc. is presented below. December 31, 2012 Current assets Plant assets (net) Current liabilities December 31, 2011 $125,000 $100,000 396,000 330,000 91,000 70,000 Longterm liabilities 133,000 95,000 Common stock, $1 par 161,000 115,000 Retained earnings 136,000 150,000 Complete the schedule showing a horizontal analysis for 2012 using 2011 as the base year. (If amount is a decrease, use either a negative sign preceding the number eg 45 or parentheses eg (45). Round percentages to 1 decimal place, e.g. 10.5. List items in the order given in the question.) BLEVINS INC. Condensed Balance Sheet December 31 2012 Assets Increase or (Decrease) 2011 Amount Percentage $ $ $ % % $ $ $ % Liabilities $ $ $ % Total assets % $ $ $ % Stockholders' Equity $ $ $ % Total liabilities % Total stockholders equity $ $ $ % Total liabilities and stockholders' equity $ $ $ % Click here if you would like to Show Work for this question Question 4 Condensed financial data of Arma Inc. follow. ARMA INC. Comparative Balance Sheets December 31 Assets Cash 2011 $90,800 92,800 112,500 28,400 Investments 138,000 Plant assets 270,000 Accumulated depreciation (50,000) $682,500 Liabilities and Stockholders' Equity Accounts receivable Inventories Prepaid expenses Total Accounts payable $112,000 16,500 Bonds payable 110,000 Common stock 220,000 Retained earnings 224,000 $682,500 Accrued expenses payable Total ARMA INC. Income Statement For the Year Ended December 31, 2011 Sales Less: $135,460 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 Cost of goods sold Net income Additional information: 1. 2. 3. 4. New plant assets costing $85,000 were purchased for cash during the year. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. Bonds matured and were paid off at face value for cash. A cash dividend of $40,350 was declared and paid during the year. Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) ARMA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period Question 5 Condensed financial data of Arma Inc. follow. $ ARMA INC. Comparative Balance Sheets December 31 Assets Cash 2011 $90,800 92,800 112,500 28,400 Investments 138,000 Plant assets 270,000 Accumulated depreciation (50,000) $682,500 Liabilities and Stockholders' Equity Accounts receivable Inventories Prepaid expenses Total Accounts payable $112,000 16,500 Bonds payable 110,000 Common stock 220,000 Retained earnings 224,000 $682,500 Accrued expenses payable Total ARMA INC. Income Statement For the Year Ended December 31, 2011 Sales Less: $135,460 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 Cost of goods sold Net income Additional information: 1. 2. 3. 4. New plant assets costing $85,000 were purchased for cash during the year. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. Bonds matured and were paid off at face value for cash. A cash dividend of $40,350 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. Complete the statement of cash flows for Arma Inc. using the direct method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow for financing and investing activities, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45). List all other amounts as positive.) ARMA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Less cash payments $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period Question 6 The comparative statements of Villa Tool Company are presented below. VILLA TOOL COMPANY Income Statement For the Year Ended December 31 Net sales 2012 $1,818,500 2011 $1,750,500 $ 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expense 516,000 479,000 Income from operations 291,000 275,500 Other expenses and losses Interest expense 18,000 14,000 Income before income taxes 273,000 261,500 Income tax expense 81,000 77,000 Net income $ 192,000 $ 184,500 Cost of goods sold VILLA TOOL COMPANY Balance Sheets December 31 Assets Current assets Cash 2012 2011 $ 60,100 $ 64,200 Shortterm investments 69,000 50,000 Accounts receivable (net) 117,800 102,800 Inventory 123,000 115,500 Total current assets 369,900 332,500 Plant assets (net) 600,300 520,300 Total assets $970,200 $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 200,000 200,000 Total liabilities 403,500 387,400 Stockholders' equity Common stock ($5 par) 280,000 300,000 Retained earnings 286,700 165,400 Total stockholders' equity 566,700 465,400 Total liabilities and stockholders' equity $970,200 $852,800 Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.) (Round earnings per share, current ratio and acidtest ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.) (a) Earnings per share $ (b) Return on common stockholders' equity % (c) % Return on assets (d) Current (e) Acidtest (f) Receivables turnover :1 :1 times (g) Inventory turnover times (h) Times interest earned times (i) Asset turnover times (j) Debt to total assets Click here if you would like to Show Work for this question % Question 2 Your answer is partially correct. Try again. Here are comparative balance sheets for Taguchi Company. TAGUCHI COMPANY Comparative Balance Sheets December 31 2011 Assets Cash Accounts receivable Inventories Land Equipment Accumulated depreciation 2010 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) $22,000 76,000 189,000 100,000 200,000 (66,000) (32,000) $597,000 Total $73,000 85,000 170,000 75,000 260,000 $555,000 Total $47,000 200,000 174,000 134,000 $597,000 Retained earnings $39,000 150,000 216,000 192,000 $555,000 Additional information: 1. Net income for 2011 was $103,000. 2. Cash dividends of $45,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2011, but land was sold at cost. Complete the statement of cash flows for 2011 using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) TAGUCHI COMPANY Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities $ $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Question 4 Your answer is partially correct. Try again. Condensed financial data of Arma Inc. follow. ARMA INC. Comparative Balance Sheets December 31 Assets Cash 2011 $90,800 92,800 112,500 28,400 Investments 138,000 Plant assets 270,000 Accumulated depreciation (50,000) $682,500 Liabilities and Stockholders' Equity Accounts receivable Inventories Prepaid expenses Total Accounts payable $112,000 16,500 Bonds payable 110,000 Common stock 220,000 Retained earnings 224,000 $682,500 Accrued expenses payable Total ARMA INC. Income Statement For the Year Ended December 31, 2011 Sales Less: $135,460 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 Cost of goods sold Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) ARMA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Click here if you would like to Show Work for this question Question 5 Your answer is partially correct. Try again. Condensed financial data of Arma Inc. follow. ARMA INC. Comparative Balance Sheets December 31 Assets Cash 2011 $90,800 92,800 112,500 28,400 Investments 138,000 Plant assets 270,000 Accumulated depreciation (50,000) $682,500 Liabilities and Stockholders' Equity Accounts receivable Inventories Prepaid expenses Total Accounts payable $112,000 Accrued expenses payable 16,500 Bonds payable 110,000 Common stock 220,000 Retained earnings 224,000 $682,500 Total ARMA INC. Income Statement For the Year Ended December 31, 2011 Sales Less: $135,460 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 Cost of goods sold Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. Complete the statement of cash flows for Arma Inc. using the direct method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow for financing and investing activities, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45). List all other amounts as positive.) ARMA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Less cash payments $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Click here if you would like to Show Work for this question Question 6 Your answer is partially correct. Try again. The comparative statements of Villa Tool Company are presented below. VILLA TOOL COMPANY Income Statement For the Year Ended December 31 Net sales Cost of goods sold 2012 2011 $1,818,500 $1,750,500 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expense 516,000 479,000 Income from operations 291,000 275,500 Other expenses and losses Interest expense 18,000 14,000 Income before income taxes 273,000 261,500 Income tax expense Net income 81,000 $ 184,500 VILLA TOOL COMPANY Balance Sheets 77,000 $ 192,000 December 31 Assets Current assets Cash 2012 2011 $ 60,100 $ 64,200 Shortterm investments 69,000 50,000 Accounts receivable (net) 117,800 102,800 Inventory 123,000 115,500 Total current assets 369,900 332,500 Plant assets (net) 600,300 520,300 Total assets $970,200 $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 200,000 200,000 Total liabilities 403,500 387,400 Stockholders' equity Common stock ($5 par) 280,000 300,000 Retained earnings 286,700 165,400 Total stockholders' equity 566,700 465,400 Total liabilities and stockholders' equity $970,200 $852,800 Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.) (Round earnings per share, current ratio and acidtest ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.) (a) Earnings per share $ (b) Return on common stockholders' equity % (c) % Return on assets (d) Current (e) Acidtest (f) Receivables turnover :1 :1 times (g) Inventory turnover times (h) Times interest earned times (i) Asset turnover (j) Debt to total assets Click here if you would like to Show Work for this question times % Question 2 Your answer is partially correct. Try again. Here are comparative balance sheets for Taguchi Company. TAGUCHI COMPANY Comparative Balance Sheets December 31 2011 Assets Cash Accounts receivable Inventories Land Equipment Accumulated depreciation 2010 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) $22,000 76,000 189,000 100,000 200,000 (66,000) (32,000) $597,000 Total $73,000 85,000 170,000 75,000 260,000 $555,000 Total $47,000 200,000 174,000 134,000 $597,000 Retained earnings $39,000 150,000 216,000 192,000 $555,000 Additional information: 1. Net income for 2011 was $103,000. 2. Cash dividends of $45,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2011, but land was sold at cost. Complete the statement of cash flows for 2011 using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) TAGUCHI COMPANY Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities $ $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Question 4 Your answer is partially correct. Try again. Condensed financial data of Arma Inc. follow. ARMA INC. Comparative Balance Sheets December 31 Assets Cash 2011 $90,800 92,800 112,500 28,400 Investments 138,000 Plant assets 270,000 Accumulated depreciation (50,000) $682,500 Liabilities and Stockholders' Equity Accounts receivable Inventories Prepaid expenses Total Accounts payable $112,000 16,500 Bonds payable 110,000 Common stock 220,000 Retained earnings 224,000 $682,500 Accrued expenses payable Total ARMA INC. Income Statement For the Year Ended December 31, 2011 Sales Less: $135,460 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 Cost of goods sold Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) ARMA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Click here if you would like to Show Work for this question Question 5 Your answer is partially correct. Try again. Condensed financial data of Arma Inc. follow. ARMA INC. Comparative Balance Sheets December 31 Assets Cash 2011 $90,800 92,800 112,500 28,400 Investments 138,000 Plant assets 270,000 Accumulated depreciation (50,000) $682,500 Liabilities and Stockholders' Equity Accounts receivable Inventories Prepaid expenses Total Accounts payable $112,000 Accrued expenses payable 16,500 Bonds payable 110,000 Common stock 220,000 Retained earnings 224,000 $682,500 Total ARMA INC. Income Statement For the Year Ended December 31, 2011 Sales Less: $135,460 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 Cost of goods sold Net income Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. Complete the statement of cash flows for Arma Inc. using the direct method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow for financing and investing activities, use either a negative sign preceding the number e.g. 45 or parentheses e.g. (45). List all other amounts as positive.) ARMA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Less cash payments $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $ Click here if you would like to Show Work for this question Question 6 Your answer is partially correct. Try again. The comparative statements of Villa Tool Company are presented below. VILLA TOOL COMPANY Income Statement For the Year Ended December 31 Net sales Cost of goods sold 2012 2011 $1,818,500 $1,750,500 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expense 516,000 479,000 Income from operations 291,000 275,500 Other expenses and losses Interest expense 18,000 14,000 Income before income taxes 273,000 261,500 Income tax expense Net income 81,000 $ 184,500 VILLA TOOL COMPANY Balance Sheets 77,000 $ 192,000 December 31 Assets Current assets Cash 2012 2011 $ 60,100 $ 64,200 Shortterm investments 69,000 50,000 Accounts receivable (net) 117,800 102,800 Inventory 123,000 115,500 Total current assets 369,900 332,500 Plant assets (net) 600,300 520,300 Total assets $970,200 $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 200,000 200,000 Total liabilities 403,500 387,400 Stockholders' equity Common stock ($5 par) 280,000 300,000 Retained earnings 286,700 165,400 Total stockholders' equity 566,700 465,400 Total liabilities and stockholders' equity $970,200 $852,800 Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.) (Round earnings per share, current ratio and acidtest ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.) (a) Earnings per share $ (b) Return on common stockholders' equity % (c) % Return on assets (d) Current (e) Acidtest (f) Receivables turnover :1 :1 times (g) Inventory turnover times (h) Times interest earned times (i) Asset turnover (j) Debt to total assets Click here if you would like to Show Work for this question times %
