Answer & Explanation:Complete the attached Accounting assignments.
problem_12_9a.pdf
problem_12_10a.pdf
problem_13_2a.pdf
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Problem 12-9A
9/30/16, 9:57 PM
Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
Cash
2013
$ 116,352
$ 69,696
Accounts receivable
126,432
54,720
Inventory
162,000
148,104
40,896
37,440
Long-term investments
198,720
156,960
Plant assets
410,400
349,200
Accumulated depreciation
(72,000 )
(74,880 )
Prepaid expenses
$982,800
$741,240
$ 146,880
$ 96,912
23,760
30,240
Bonds payable
158,400
210,240
Common stock
316,800
252,000
Retained earnings
336,960
151,848
$982,800
$741,240
Total
Liabilities and Stockholders’ Equity
Accounts payable
Accrued expenses payable
Total
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$559,382
Less:
Cost of goods sold
$195,062
Operating expenses, excluding depreciation
17,870
Depreciation expense
66,960
Income tax expense
39,283
Interest expense
Loss on disposal of plant assets
Net income
6,811
10,800
336,786
$ 222,596
Additional information:
1. New plant assets costing $144,000 were purchased for cash during the year.
Old plant assets having an original cost of $82,800 and accumulated depreciation of $69,840 were sold for
2.
$2,160 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $37,484 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with
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Problem 12-9A
9/30/16, 9:57 PM
either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities
Net Income
$
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense
$
Loss on Disposal of Plant Assets
Increase in Accounts Receivable
Increase in Inventory
Increase in Prepaid Expenses
Increase in Accounts Payable
Decrease in Accrued Expenses Payable
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Sale of Plant Assets
Purchase of Plant Assets
Purchase of Investments
Net Cash Provided by Investing Activities
Cash Flows from Financing Activities
Sale of Common Stock
Payment of Cash Dividends
Redemption of Bonds
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Problem 12-9A
9/30/16, 9:57 PM
Net Cash Provided by Financing Activities
Net Increase in Cash
Cash at Beginning of Period
Cash at End of Period
$
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Problem 12-10A
10/2/16, 6:35 PM
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
Cash
2013
$ 159,176
$ 95,348
Accounts receivable
172,966
74,860
Inventory
221,625
202,615
55,948
51,220
Long-term investments
271,860
214,730
Plant assets
561,450
477,725
Accumulated depreciation
(98,500 )
Prepaid expenses
(102,440 )
$1,344,525
$1,014,058
$ 200,940
$ 132,581
32,505
41,370
Bonds payable
216,700
287,620
Common stock
433,400
344,750
Retained earnings
460,980
207,737
$1,344,525
$1,014,058
Total
Liabilities and Stockholders’ Equity
Accounts payable
Accrued expenses payable
Total
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$765,266
Less:
Cost of goods sold
$266,856
Operating expenses, excluding depreciation
24,448
Depreciation expense
91,605
Income taxes
53,742
Interest expense
Loss on disposal of plant assets
Net income
9,318
14,775
460,744
$ 304,522
Additional information:
1. New plant assets costing $197,000 were purchased for cash during the year.
Old plant assets having an original cost of $113,275 and accumulated depreciation of $95,545 were sold for
2.
$2,955 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $51,279 was declared and paid during the year.
Further analysis reveals that accounts payable pertain to merchandise creditors.
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Problem 12-10A
10/2/16, 6:35 PM
Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease
cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities
Cash Receipts from Customers
Less
:
$
Cash Payments
To Suppliers
$
For Operating Expenses
For Interest
For Income Taxes
Net Cash used by Operating Activities
Cash Flows from Investing Activities
Sale of Plant Assets
Purchase of Investments
Purchase of Plant Assets
Net Cash used by Investing Activities
Cash Flows from Financing Activities
Sale of Common Stock
Redemption of Bonds
Payment of Cash Dividends
Net Cash used by Financing Activities
Net Increase in Cash
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Problem 12-10A
10/2/16, 6:35 PM
Cash at Beginning of Period
Cash at End of Period
$
SHOW SOLUTION
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Problem 13-2A
10/2/16, 6:40 PM
Problem 13-2A
The comparative statements of Osborne Company are presented here.
OSBORNE COMPANY
Income Statements
For the Years Ended December 31
2014
Net sales
2013
$1,891,996
$1,751,956
1,059,996
1,007,456
Gross profit
832,000
744,500
Selling and administrative expenses
501,456
480,456
Income from operations
330,544
264,044
23,548
21,548
306,996
242,496
93,548
74,548
$ 213,448
$ 167,948
Cost of goods sold
Other expenses and losses
Interest expense
Income before income taxes
Income tax expense
Net income
OSBORNE COMPANY
Balance Sheets
December 31
Assets
2014
2013
Current assets
Cash
$ 60,100
$ 64,200
74,000
50,000
Accounts receivable
119,256
104,256
Inventory
127,548
117,048
380,904
335,504
661,242
532,542
$1,042,146
$868,046
$ 161,456
$146,856
45,048
43,548
206,504
190,404
232,242
212,242
438,746
402,646
Common stock ($5 par)
290,000
300,000
Retained earnings
313,400
165,400
603,400
465,400
$1,042,146
$868,046
Debt investments (short-term)
Total current assets
Plant assets (net)
Total assets
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
Income taxes payable
Total current liabilities
Bonds payable
Total liabilities
Stockholders’ equity
Total stockholders’ equity
Total liabilities and stockholders’ equity
All sales were on account. Net cash provided by operating activities for 2014 was $243,160. Capital
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Problem 13-2A
10/2/16, 6:40 PM
expenditures were $135,270, and cash dividends were $65,448.
Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
(a)
Earnings per share
(b)
Return on common stockholders’ equity
%
(c)
Return on assets
%
(d)
Current ratio
:1
(e)
Accounts receivable turnover
times
(f)
Average collection period
days
(g)
Inventory turnover
(h)
Days in inventory
days
(i)
Times interest earned
times
(j)
Asset turnover
times
(k)
Debt to assets
%
(l)
Current cash debt coverage
times
$
times
(m) Cash debt coverage
(n)
Free cash flow
times
$
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