ACCOUNTING CHAPTER 12 ASSIGNMENT
ACCOUNTING CHAPTER 12 ASSIGNMENT
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1)
Exercise 12-8 (Part Level Submission) |
SCHMITT COMPANY
Comparative Balance Sheets December 31 |
||||||
Assets
|
2014
|
2013
|
||||
Cash |
$ 89,080
|
$ 28,820
|
||||
Accounts receivable |
115,280
|
99,560
|
||||
Inventory |
218,770
|
247,590
|
||||
Land |
104,800
|
131,000
|
||||
Equipment |
340,600
|
262,000
|
||||
Accumulated depreciation—equipment |
(86,460
|
)
|
(41,920
|
)
|
||
Total |
$782,070
|
$727,050
|
||||
Liabilities and Stockholders’ Equity
|
||||||
Accounts payable |
$ 51,090
|
$ 56,330
|
||||
Bonds payable |
196,500
|
262,000
|
||||
Common stock ($1 par) |
282,960
|
227,940
|
||||
Retained earnings |
251,520
|
180,780
|
||||
Total |
$782,070
|
$727,050
|
Additional information:
1. | Net income for 2014 was $121,830. | |
2. | Depreciation expense was $44,540. | |
3. | Cash dividends of $51,090 were declared and paid. | |
4. | Bonds payable amounting to $65,500 were redeemed for cash $65,500. | |
5. | Common stock was issued for $55,020 cash. | |
6. | No equipment was sold during 2014. | |
7. | Land was sold for its book value. |
Prepare a statement of cash flows for 2014 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)).
Compute these cash-based ratios: (Round ratios to 2 decimal places, e.g. 2.56.)
(1) Current cash debt coverage.
2) Cash debt coverage.
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets December 31 |
||||||
Assets
|
2014
|
2013
|
||||
Cash |
$ 180,184
|
$ 107,932
|
||||
Accounts receivable |
195,794
|
84,740
|
||||
Inventory |
250,875
|
229,356
|
||||
Prepaid expenses |
63,332
|
57,980
|
||||
Long-term investments |
307,740
|
243,070
|
||||
Plant assets |
635,550
|
540,775
|
||||
Accumulated depreciation |
(111,500
|
)
|
(115,960
|
)
|
||
Total |
$1,521,975
|
$1,147,893
|
||||
Liabilities and Stockholders’ Equity
|
||||||
Accounts payable |
$ 227,460
|
$ 150,079
|
||||
Accrued expenses payable |
36,795
|
46,830
|
||||
Bonds payable |
245,300
|
325,580
|
||||
Common stock |
490,600
|
390,250
|
||||
Retained earnings |
521,820
|
235,154
|
||||
Total |
$1,521,975
|
$1,147,893
|
ODGERS INC.
Income Statement Data For the Year Ended December 31, 2014 |
||||
Sales revenue |
$866,266
|
|||
Less: | ||||
Cost of goods sold |
$302,076
|
|||
Operating expenses, excluding depreciation |
27,674
|
|||
Depreciation expense |
103,695
|
|||
Income tax expense |
60,834
|
|||
Interest expense |
10,548
|
|||
Loss on disposal of plant assets |
16,725
|
521,552
|
||
Net income |
$ 344,714
|
Additional information:
1. | New plant assets costing $223,000 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $128,225 and accumulated depreciation of $108,155 were sold for $3,345 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $58,048 was declared and paid during the year. |
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).)