![\"pixel.gif\"](\"http:\/\/edugen.wiley.com\/edugen\/art2\/common\/pixel.gif\"){kind=tracking}
\n
\n
Question 1\n
Putnam Corporation had these transactions during 2014.<\/p>\nDescription \/ Instructions: Complete the following Week 5 Assignment in WileyPLUS: * Exercise 7-3 * Exercise 12-1 * Exercise 12-8 * Problem 12-9A * Problem 12-10A * Exercise 13-3 * Exercise 13-4 * IFRS 13-1 * Problem 13-2A <\/p>\n
Exercise 12-1<\/p>\n
\n
\nQuestion 1
\nPutnam Corporation had these transactions during 2014.<\/p>\n
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.<\/p>\n
(a) Purchased a machine for $30,000, giving a long-term note in exchange.
\n (b) Issued $50,000 par value common stock for cash.
\n (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
\n (d) Declared and paid a cash dividend of $13,000.
\n (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
\n (f) Collected $16,000 of accounts receivable.
\n (g) Paid $18,000 on accounts payable.
\n<\/p>\n
Warning<\/p>\n
Don’t show me this message again for the assignment<\/p>\n
Ok<\/a> Exercise 12-8<\/p>\n Comparative Balance Sheets<\/p>\n December 31<\/p>\n Assets<\/b> Additional information:<\/p>\n 1. Net income for 2014 was $93,000.2. Depreciation expense was $34,000.3. Cash dividends of $39,000 were declared and paid.4. Bonds payable amounting to $50,000 were redeemed for cash $50,000.5. Common stock was issued for $42,000 cash.6. No equipment was sold during 2014.7. Land was sold for its book value.<\/p>\n Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> Statement of Cash Flows<\/p>\n For the Year Ended December 31, 2014<\/p>\n Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> (1) Current cash debt coverage.<\/p>\n Current cash debt coverage (2) Cash debt coverage.<\/p>\n Cash debt coverage Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> Exercise 13-3<\/p>\n Prepare a schedule showing a horizontal analysis for 2014, using 2013 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)<\/b><\/p>\n SPANGLES INC.<\/b><\/p>\n Condensed Balance Sheet<\/p>\n December 31<\/p>\n Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> Exercise 13-4<\/p>\n Prepare a schedule showing a vertical analysis for 2014 and 2013. (Round percentages to 1 decimal place, e.g. 12.1%.)<\/b><\/p>\n JACOBS CORPORATION<\/b><\/p>\n Condensed Income Statement<\/p>\n For the Years Ended December 31<\/p>\n Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> IFRS 13-1<\/p>\n Statement of Comprehensive Income<\/b><\/p>\n For the Year Ended December 31, 2014<\/b><\/p>\n Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> Problem 12-9A<\/p>\n Comparative Balance Sheets<\/b><\/p>\n December 31<\/p>\n Assets<\/b> Income Statement Data<\/b><\/p>\n For the Year Ended December 31, 2014<\/p>\n Sales revenue $388,460Less: Cost of goods sold $135,460 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income tax expense 27,280 Interest expense 4,730 Loss on disposal of plant assets 7,500 233,880Net income $ 154,580<\/p>\n Additional information:<\/p>\n 1. 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.3. Bonds payable matured and were paid off at face value for cash.4. A cash dividend of $26,030 was declared and paid during the year.<\/p>\n Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)<\/b><\/p>\n ODGERS INC.<\/b><\/p>\n Statement of Cash Flows<\/b><\/p>\n For the Year Ended December 31, 2014<\/p>\n Warning<\/p>\n Don’t show me this message again for the assignment<\/p>\n Ok<\/a> Problem 12-10A<\/p>\n Description \/ Instructions: Complete the following Week 5 Assignment in WileyPLUS: * Exercise 7-3 * Exercise 12-1 * Exercise 12-8 * Problem 12-9A * Problem 12-10A * Exercise 13-3 * Exercise 13-4 * IFRS 13-1 * Problem 13-2A Exercise 12-1 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50292","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50292"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50292\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nCancel<\/a>
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n <\/p>\nQuestion 2
\n
\nShown below are comparative balance sheets for Schmitt Company.
\nSCHMITT COMPANY<\/b><\/p>\n
\n2014<\/b>
\n2013<\/b> Cash $ 68,000 $ 22,000 Accounts receivable 88,000 76,000 Inventory 167,000 189,000 Land 80,000 100,000 Equipment 260,000 200,000 Accumulated depreciation\u2014equipment (66,000) (32,000)Total $597,000 $555,000
\nLiabilities and Stockholders\u2019 Equity<\/b> Accounts payable $ 39,000 $ 43,000 Bonds payable 150,000 200,000 Common stock ($1 par) 216,000 174,00 Retained earnings 192,000 138,000 Total $597,000 $555,000 <\/p>\n
\nCancel<\/a>
\n
\n
\nPrepare a statement of cash flows for 2014 using the indirect method.
\n(Show amounts that decrease cash flow with either a – sign e.g. -15,000, or in parenthesis e.g. (15,000)). <\/b>
\nSCHMITT COMPANY<\/b><\/p>\n
\n $
\nAdjustments to reconcile net income to
\n
\n$
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n $
\n<\/p>\n
\nCancel<\/a>
\n
\n
\nCompute these cash-based ratios:
\n(Round ratios to 2 decimal places, e.g. 2.56.)<\/b><\/p>\n
\n times<\/p>\n
\n times<\/p>\n
\nCancel<\/a>
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n <\/p>\n
\n
\nQuestion 3
\nHere is financial information for Spangles Inc.
\nDecember 31, 2014<\/b>
\nDecember 31, 2013<\/b>Current assets $106,000 $ 90,000Plant assets (net) 400,000 350,000Current liabilities 99,000 65,000Long-term liabilities 122,000 90,000Common stock, $1 par 130,000 115,000Retained earnings 155,000 170,000<\/p>\n
\nIncrease or (Decrease)<\/b>
\n2014<\/b>
\n2013<\/b>
\nAmount<\/b>
\nPercentage<\/b>
\nAssets<\/b> Current Assets $106,000 $90,000 $
\n
\n%Plant assets (net) 400,000 350,000
\n
\n%
\n Total assets<\/b> $506,000 $440,000 $
\n
\n%
\nLiabilities<\/b> Current Liabilities $99,000 $65,000 $
\n
\n%Long-term liabilities 122,000 90,000
\n
\n%
\n Total liabilities<\/b> $221,000 $155,000 $
\n
\n%
\nStockholders\u2019 Equity<\/b> Common stock, $1 par 130,000 115,000
\n
\n%Retained earnings 155,000 170,000
\n
\n% Total stockholders\u2019 equity 285,000 285,000
\n
\n%
\n Total liabilities and stockholders\u2019 equity<\/b> $506,000 $440,000 $
\n
\n%<\/p>\n
\nCancel<\/a>
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n <\/p>\n
\n
\nQuestion 4
\nOperating data for Jacobs Corporation are presented below.
\n2014<\/b>
\n2013<\/b>Sales revenue $800,000 $600,000Cost of goods sold 520,000 408,000Selling expenses 120,000 72,000Administrative expenses 60,000 48,000Income tax expense 30,000 24,000Net income 70,000 48,000<\/p>\n
\n2014<\/b>
\n2013<\/b>
\nAmount<\/b>
\nPercent<\/b>
\nAmount<\/b>
\nPercent<\/b>Sales$800,000
\n% $600,000
\n%Cost of goods sold520,000
\n% 408,000
\n%Gross profit280,000
\n% 192,000
\n%Selling expenses120,000
\n% 72,000
\n%Administrative expenses60,000
\n% 48,000
\n%Total operating expenses180,000
\n% 120,000
\n%Income before income taxes100,000
\n% 72,000
\n%Income tax expense30,000
\n% 24,000
\n%Net income$ 70,000
\n% $ 48,000
\n%<\/p>\n
\nCancel<\/a>
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n <\/p>\n
\n
\nQuestion 5
\nLing Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.
\nLING COMPANY<\/b><\/p>\n
\n $
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n $
\n <\/p>\n
\nCancel<\/a>
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n <\/p>\n
\n
\nQuestion 6
\nCondensed financial data of Odgers Inc. follow.
\nODGERS INC.<\/b><\/p>\n
\n2014<\/b>
\n2013<\/b> Cash $ 80,800 $ 48,400 Accounts receivable 87,800 38,000 Inventory 112,500 102,850 Prepaid expenses 28,400 26,000 Long-term investments 138,000 109,000 Plant assets 285,000 242,500 Accumulated depreciation (50,000) (52,000)Total $682,500 $514,750
\nLiabilities and Stockholders\u2019 Equity<\/b> Accounts payable $ 102,000 $ 67,300 Accrued expenses payable 16,500 21,000 Bonds payable 110,000 146,000 Common stock 220,000 175,000 Retained earnings 234,000 105,450 Total $682,500 $514,750
\nODGERS INC.<\/b><\/p>\n
\n $
\nAdjustments to reconcile net income to
\n
\n$
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n $
\n<\/p>\n
\nCancel<\/a>
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n <\/p>\n
\n\n","protected":false},"excerpt":{"rendered":"