Reference no: EM13341017
1.On the basis of the following data for Teller Co. for 2008 and the preceding year ended December 31, 2008, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
|
|
Year
|
Year
|
|
|
2008
|
2007
|
|
Cash
|
$100,000
|
$ 78,000
|
|
Accounts receivable (net)
|
78,000
|
85,000
|
|
Inventories
|
101,500
|
90,000
|
|
Equipment
|
410,000
|
370,000
|
|
Accumulated depreciation
|
(150,000)
|
(158,000)
|
|
|
$539,500
|
$465,000
|
|
|
|
|
|
Accounts payable (merchandise creditors)
|
$ 58,500
|
$ 55,000
|
|
Cash dividends payable
|
5,000
|
4,000
|
|
Common stock, $10 par
|
200,000
|
170,000
|
|
Paid-in capital in excess of par--
|
|
|
|
common stock
|
62,000
|
60,000
|
|
Retained earnings
|
214,000
|
176,000
|
|
|
$539,500
|
$465,000
|
2.
Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
|
|
End
|
Beginning
|
|
Cash
|
$ 62,000
|
$73,000
|
|
Accounts receivable (net)
|
75,000
|
60,000
|
|
Inventories
|
54,000
|
47,000
|
|
Accounts payable
|
|
|
|
(merchandise creditors)
|
43,000
|
37,000
|
|
Salaries payable
|
2,800
|
3,800
|
|
Sales (on account)
|
210,000
|
|
|
Cost of merchandise sold
|
70,000
|
|
|
Operating expenses other than depreciation
|
67,000
|
|
|
|
|
Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.
3. The comparative balance sheet of Drango Company appears below:
HUERTO COMPANY
Comparative Balance Sheet
December 31, 2007
|
Assets
|
2007
|
2006
|
|
Current assets
|
$ 340
|
$280
|
|
Plant assets
|
675
|
520
|
|
Total assets
|
$1,015
|
$800
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
Current liabilities
|
$ 180
|
$120
|
|
Long-term debt
|
250
|
160
|
|
Common stock
|
325
|
320
|
|
Retained earnings
|
260
|
200
|
|
Total liabilities and stockholders' equity
|
$1,015
|
$800
|
|
|
|
Instructions
Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year.
Using vertical analysis, prepare a common size comparative balance sheet.
4. Selected data from the Conner Company are presented below:
|
|
Total assets
|
$1,500,000
|
|
|
Average assets
|
1,700,000
|
|
|
Net income
|
250,000
|
|
|
Net sales
|
1,400,000
|
|
|
Average common stockholders' equity
|
1,000,000
|
|
|
Net cash provided by operating activities
|
275,000
|
|
|
Shares of common stock outstanding
|
10,000
|
|
|
|
Instructions
Calculate the profitability ratios that can be computed from the above information.
|
At what time does the hour hand point in the same direction
: A clock face has negative point charges -q, -2q, -3q, · · · , -12q fixed at the positions of the corresponding numerals. The clock hands do not perturb the net field due to the point charges
|
|
By what fraction does your mass increase
: By what fraction does your mass increase when you and your car travel down the highway at 70 mph
|
|
Define mechanistically why the result would differ
: Explain qualitatively how the results of the experiment would differ when potassium tert-butoxide is used as the base instead of potassium hydroxide. A correct answer will identify how the result(s) would differ, and explain mechanistically why th..
|
|
Calculate operating cash flow using the four approaches
: Calculate operating cash flow using the four different approaches described in the chapter and verify that the answer is the same in each case.
|
|
Prepare a common size comparative balance sheet
: Calculate the profitability ratios that can be computed from the above information and prepare a common size comparative balance sheet.
|
|
Determine the resultant force on q3 charge
: Three charges, q1 = +1.84 10-9 C, q2 = -3.06 10-9 C, and q3 = +1.09 10-9 C, are located on the x-axis at x1 = 0, x2 = 10.0 cm, and x3 = 20.0 cm. Find the resultant force on q3.
|
|
Calculate the mass of the plane
: Air (density = 1.29kg/m^3) passes over the top and bottom surfaces of an aircraft whose effective wing area is 75.5m2. what is the mass of the plane
|
|
How many irrs are there
: Compute the IRR for this project. How many IRRs are there? Using the IRR decision rule, should the company accept the project? What's going on here?
|
|
Develop a well-researched paper based on the xerox case
: Develop a well-researched paper based on the Xerox case study on for your current organization or one you have worked in the past that critically analyzes:
|