ACCOUNTING CHAPTER 12 ASSIGNMENT WILEY PLUS

1)

Exercise 12-8 (Part Level Submission)

Shown below are comparative balance sheets for Schmitt Company.SCHMITT COMPANYComparative Balance SheetsDecember 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.

Assets 2014  2013 

Cash 

  

 

Accounts receivable 

  

 

Inventory 

  

 

 

  

 

 

  

 

 

  

 

Accumulated depreciation 

) 

)

Total 

  

 

       

Liabilities and Stockholders’ Equity      

Accounts payable 

  

 

 

  

 

Bonds payable 

  

 

Common stock 

  

 

Retained earnings 

  

 

Total $1,521,975  $1,147,893 

ODGERS INC.Comparative Balance SheetsDecember 31
$ 180,184	$ 107,932
195,794	84,740
250,875	229,356
Prepaid expenses	63,332	57,980
Long-term investments	307,740	243,070
Plant assets	635,550	540,775
(111,500	(115,960
	$1,521,975		$1,147,893
$ 227,460	$ 150,079
Accrued expenses payable	36,795	46,830
245,300	325,580
490,600	390,250
521,820	235,154

 

   

    

 

  

 

  

 

  

 

  

 

  

 

 

Net income   

ODGERS INC.Income Statement DataFor 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
$ 344,714

Additional information:

1. 

2. 

3. 

4. 

New plant assets costing $223,000 were purchased for cash during the year.

Old plant assets having an original cost of $128,225 and accumulated depreciation of $108,155 were sold for $3,345 cash.

Bonds payable matured and were paid off at face value for cash.

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).)