Chapter 12 statement of cash flows

ACCOUNTING CHAPTER 12 ASSIGNMENT WILEY PLUS

Exercise 12-8 (Part Level Submission)

Shown below are comparative balance sheets for Schmitt Company.

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).)