ACCOUNTING HOMEWORK

I ATTACHED ; THE QUESTIONS IN A FILE I NEED THE ANSWERS

Print by: Sadu Singh
FUNDAMENTALS OF ACCOUNTING II: 352923 / Project

*Problem 12-11A
The comparative balance sheets for Vanco Company as of December 31 are presented below.

VANCO COMPANY
Comparative Balance Sheets

December 31
Assets 2012 2011
Cash $ 99,688 $ 65,970
Accounts receivable 73,300 85,028
Inventory 222,026 208,172
Prepaid expenses 22,400 30,786
Land 212,570 190,580
Equipment 329,850 227,230
Accumulated depreciation—equipment (65,970 ) (51,310 )
Buildings 293,200 293,200
Accumulated depreciation—buildings (87,960 ) (58,640 )

Total $1,099,104 $991,016

Liabilities and Stockholders’ Equity
Accounts payable $ 65,574 $ 52,776
Bonds payable 439,800 439,800
Common stock, $1 par 293,200 234,560
Retained earnings 300,530 263,880

Total $1,099,104 $991,016

Additional information:

1. Operating expenses include depreciation expense of $61,572.
2. Land was sold for cash at book value.
3. Cash dividends of $17,592 were paid.
4. Net income for 2012 was $54,242.
5. Equipment was purchased for $134,872 cash. In addition, equipment costing $32,252 with a book value of

$14,660 was sold for $11,728 cash.
6. 58,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $58,640.

Prepare a statement of cash flows for the year ended December 31, 2012, 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).)

VANCO COMPANY
Statement of Cash Flows

For the Year Ended December 31, 2012

$

Adjustments to reconcile net income to

Question Attempts: 0 of 2 used

$
$
$

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Print by: Sadu Singh
FUNDAMENTALS OF ACCOUNTING II: 352923 / Project

*Problem 13-2A
The comparative statements of Lucille Company are presented here.

LUCILLE COMPANY
Income Statements

For the Years Ended December 31
2012 2011

Net sales $1,893,173 $1,753,133
Cost of goods sold 1,061,173 1,008,633
Gross profit 832,000 744,500
Selling and administrative expenses 502,633 481,633
Income from operations 329,367 262,867
Other expenses and losses
Interest expense 23,833 21,833
Income before income taxes 305,534 241,034
Income tax expense 93,833 74,833

Net income $ 211,701 $ 166,201

LUCILLE COMPANY
Balance Sheets
December 31

Assets 2012 2011
Current assets
Cash $ 60,100 $ 64,200
Short-term investments 74,000 50,000
Accounts receivable 120,433 105,433
Inventory 127,833 117,333
Total current assets 382,366 336,966
Plant assets (net) 660,933 532,233

Total assets $1,043,299 $869,199

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 162,633 $148,033
Income taxes payable 45,333 43,833
Total current liabilities 207,966 191,866
Bonds payable 231,933 211,933
Total liabilities 439,899 403,799
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400

Total liabilities and stockholders’ equity $1,043,299 $869,199

All sales were on account. Net cash provided by operating activities for 2012 was $230,640. Capital expenditures

Question Attempts: 0 of 2 used

were $135,520, and cash dividends were $63,701.

Compute the following ratios for 2012. (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) Receivables turnover times

(f) Average collection period days

(g) Inventory turnover times

(h) Days in inventory days

(i) Times interest earned times

(j) Asset turnover times

(k) Debt to total assets %

(l) Current cash debt coverage times

(m) Cash debt coverage times

(n) Free cash flow $

Copyright © 2000-2013 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Print by: Sadu Singh
FUNDAMENTALS OF ACCOUNTING II: 352923 / Project

*Problem 13-4A
The following financial information is for Cheaney Company.

CHEANEY COMPANY
Balance Sheets
December 31

Assets 2012 2011
Cash $ 71,500 $ 65,100
Short-term investments 54,800 39,200
Receivables 103,400 89,200
Inventories 238,900 168,400
Prepaid expenses 29,800 27,500
Land 134,400 134,400
Building and equipment (net) 259,100 183,300

Total assets $891,900 $707,100

Liabilities and Stockholders’ Equity
Notes payable $170,600 $107,100
Accounts payable 68,600 54,100
Accrued liabilities 39,200 39,200
Bonds payable, due 2015 249,900 171,800
Common stock, $10 par 199,800 199,800
Retained earnings 163,800 135,100

Total liabilities and stockholders’ equity $891,900 $707,100

CHEANEY COMPANY
Income Statements

For the Years Ended December 31
2012 2011

Sales $893,300 $797,500
Cost of goods sold 644,900 575,600
Gross profit 248,400 221,900
Operating expenses 191,400 159,700

Net income $ 57,000 $ 62,200

Additional information:

1. Inventory at the beginning of 2011 was $115,500.
2. Receivables (net) at the beginning of 2011 were $89,100.
3. Total assets at the beginning of 2011 were $638,700.
4. No common stock transactions occurred during 2011 or 2012.
5. All sales were on account.

*(a)
Compute the liquidity and profitability ratios of Cheaney Company for 2011 and 2012. (Round all answers to 2

Attempts: 0 of 2 used

decimal places, e.g. 1.83 or 12.61%. If % change is a decrease show the numbers as negative, e.g.
-12.61% or (12.61%).)

2011 2012 % Change

LIQUIDITY

Current :1 :1 %

Receivables turnover times times %

Inventory turnover times times %

2011 2012 % Change
PROFITABILITY
Profit margin % % %

Asset turnover times times %

Return on assets % % %

Earnings per share $ $ %

*(b)
The parts of this question must be completed in order. This part will be available when you complete the part
above.

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