Reference no: EM13549106
Shown on the next page are the financial statements of Klemmer Company.
|
KLEMMER COMPANY
Comparative Balance Sheets
December 31
|
|
Assets
|
|
2012
|
|
2011
|
|
Cash
|
|
$ 25,000
|
|
$ 33,000
|
|
Accounts receivable
|
|
23,000
|
|
14,000
|
|
Inventory
|
|
41,000
|
|
25,000
|
|
Property, plant, and equipment
|
$ 73,000
|
|
$ 78,000
|
|
|
Less: Accumulated depreciation
|
(27,000)
|
46,000
|
(24,000)
|
54,000
|
|
Total
|
|
$135,000
|
|
$126,000
|
|
Liabilities and Stockholders" Equity
|
|
|
|
|
|
Accounts payable
|
|
$ 23,000
|
|
$ 46,000
|
|
Income taxes payable
|
|
26,000
|
|
23,000
|
|
Bonds payable
|
|
20,000
|
|
10,000
|
|
Common stock
|
|
25,000
|
|
25,000
|
|
Retained earnings
|
|
41,000
|
|
22,000
|
|
Total
|
|
$135,000
|
|
$126,000
|
|
KLEMMER COMPANY
Income Statement
For the Year Ended December 31, 2012
|
|
Sales
|
|
$295,000
|
|
Cost of goods sold
|
|
194,000
|
|
Gross profit
|
|
101,000
|
|
Selling expenses
|
$28,000
|
|
|
Administrative expenses
|
9,000
|
37,000
|
|
Income from operations
|
|
64,000
|
|
Interest expense
|
|
7,000
|
|
Income before income taxes
|
|
57,000
|
|
Income tax expense
|
|
13,000
|
|
Net income
|
|
$ 44,000
|
Additional data:
1. Depreciation expense was $6,000.
2. Dividends of $25,000 were declared and paid.
3. During the year, equipment was sold for $10,000 cash. This equipment cost $13,000 originally and had accumulated depreciation of $3,000 at the time of sale.
4. Additional equipment was purchased for $8,000 cash.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute these cash-based measures:
(1) Current cash debt coverage ratio.
(2) Cash debt coverage ratio.
(3) Free cash flow.
|
Prepare the journal entry to record the bond issuance
: Determine the price at which the bonds were issued and the amount that ATC recieved at issuance and prepare the journal entry to record the bond issuance.
|
|
Transformed into matter during this reaction
: A collision between two protons produces three new particles: p + p --->p + + + 0 + 0. The rest energies of the new particles are + (139.6 MeV), 0 (1116 MeV), 0 (497.7 MeV). Note that one proton disappears during the reaction. How much of the protons..
|
|
What is the volume of this individual
: A 300 pound man is submerged in water, and his submerged weight is approximately 120 pounds. What is the volume of this individual
|
|
Explain relationship between energy and the wavelength
: What is the relationship between energy and the wavelength of an electromagnetic radiation
|
|
Make statement of cash flows using the indirect method
: Prepare a statement of cash flows using the indirect method, compute these cash-based measures - current cash debt coverage ratio.
|
|
Whats the balloons new radius
: Suppose you have a spherical balloon filled with air at room temperature and 1.0 atm pressure; its radius is 10 cm. You take the balloon in an airplane, where the pressure is 0.80 atm. If the temperature is unchanged, what's the balloon's new radius?..
|
|
Reaction rate for prepupal development of male drosophila
: The reaction rate for the prepupal development of male Drosophila is temperature-dependent. Assuming that the reaction rate is exponential as in,reaction rate proportional to e?Ea/(kT). The activation energy for this development is then 2.81 10-19 J...
|
|
Explain how many grams of p4o10 can be produced
: Incandescent white of a fireworks display is caused by the formation of P4O10, which occurs by the combustion of phosphorus, if 1.75 mol P reacts with 2.00 mol O2, how many grams of P4O10 can be produced
|
|
What is the maximum amount of energy
: What is the maximum amount of energy that is stored in a volcano if the chamber is 5.5x10^4 meters wide, 7.2x10^4 meters long, thickness =500meters, located at 1200 meters deep, and the crust has a density of 2600 kg/m^3? show work please
|