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Hi could someone help me with my home work. Just need the answers, no rewritten questions. FinancialtStatementtAnalysis Homework # 3 Chapter 7 & 8 Exercise
Hi could someone help me with my home work. Just need the answers, no rewritten questions.
Financial\tStatement\tAnalysis Homework # 3 Chapter 7 & 8 Exercise #1 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Wellman Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity. (a) Payment of interest on notes payable. (b) Exchange of land for patent. (c) Sale of building at book value. (d) Payment of dividends. (e) Depreciation. (f) Receipt of dividends on investment in stock. (g) Receipt of interest on notes receivable. (h) Issuance of common stock. (i) Amortization of patent. (j) Issuance of bonds for land. (k) Purchase of land. (l) Conversion of bonds into common stock. (m) Sale of land at a loss. (n) Retirement of bonds. Financial\tStatement\tAnalysis Exercise # 2 Below is the comparative balance sheets and income statement of Cheng Inc. From this information prepare a statement of cash flows for the year ended December 2017. CHENG INC. Comparative Balance Sheets December 31 Assets 2017 Cash $80,800 Accounts receivable 92,800 Inventory 117,500 Prepaid expenses 28,400 Investments 143,000 Equipment 270,000 Accumulated depreciation-equipment ( 50,000 Total $682,500 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total ) $112,000 16,500 110,000 220,000 224,000 $682,500 2016 $48,400 33,000 102,850 26,000 114,000 242,500 ( 52,000 $514,750 ) $67,300 17,000 150,000 175,000 105,450 $514,750 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income $392,780 $135,460 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Financial\tStatement\tAnalysis Additional information: 1. 2. 3. 4. New equipment costing $85,000 were purchased for cash during the year. Old equipment having an original cost of $57,500 was 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. Requirement Prepare a statement of cash flows using the indirect method Exercise #3 What is Yutter's sustainable equity growth rate? A. B. C. D. 9.12% 9.88% 11.4% 12.0% Financial\tStatement\tAnalysis Exercise #4 Below are selected ratios for Manufacturers Corporation. Use this information answer the following questions. a. Calculate return on net operating assets for all three years. Identify reasons for any changes. b. Calculate return on equity for all three years. Comment on changesStep by Step Solution
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