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ACC291 Week 5: E13-1, E14-1, P13-9A, P13-10A, P14-2

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Description

E13-1

Pioneer Corporation had these transactions during 2011.

Pioneer Corporation had these transactions during 2011.

  1. Issued $50,000 par value common stock for cash.
  2. Purchased a machine for $30,000, giving a long-term note in exchange.
  3. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
  4. Declared and paid a cash dividend of $18,000.
  5. Sold a long-term investment with a cost of $15,000 for $15,000 cash.
  6. Collected $16,000 of accounts receivable.
  7. Paid $18,000 on accounts payable.

Instructions

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

Week 5 Assignment – E14-1

Financial information for Blevins Inc. is presented below

Financial information for Blevins Inc. is presented below.


December 31, 2012 December 31, 2011
Current assets $125,000 $100,000
Plant assets (net) 396,000 330,000
Current liabilities 91,000 70,000
Long-term liabilities 133,000 95,000
Common stock, $1 par 161,000 115,000
Retained earnings 136,000 150,000

Instructions

Prepare a schedule showing a horizontal analysis for 2012 using 2011 as the base year.

Problem 13-9A

Condensed financial data of Arma Inc. follow.

Additional information:

  1. New plant assets costing $85,000 were purchased for cash during the year.
  2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
  3. Bonds matured and were paid off at face value for cash.
  4. A cash dividend of $40,350 was declared and paid during the year.

Prepare a statement of cash flows—indirect method.

Problem 13-10A

Data for Arma Inc. are presented in P13-9A

Data for Arma Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertain to merchandise creditors.

Prepare a statement of cash flows—direct method.

Instructions

Prepare a statement of cash flows for Arma Inc. using the direct method.

Problem 14-2

The comparative statements of Villa Tool Company are presented below.

The comparative statements of Villa Tool Company are presented below.

Compute ratios from balance sheet and income statement.

Instructions

Compute the following ratios for 2012. (Weighted-average common shares in 2012 were 57,000, and all sales were on account.)

  1. Earnings per share.
  2. Return on common stockholders’ equity.
  3. Return on assets.
  4. Current.
  5. Acid-test.
  6. Receivables turnover.
  7. Inventory turnover.
  8. Times interest earned.
  9. Asset turnover.
  10. Debt to total assets.