Managerial Accounting: Tools for Business Decision Making 7e + WileyPLUS Registration Card
7th Edition
ISBN: 9781119036432
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
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Textbook Question
Chapter 13, Problem 13.8E
Here are comparative balance sheets for Velo Company.
VELO COMPANY
Comparative Balance Sheets
December 31
| Assets | 2017 | 2016 |
| Cash | $ 63,000 | $ 22,000 |
| Accounts receivable | 85,000 | 76,000 |
| Inventory | 170,000 | 189,000 |
| Land | 75,000 | 100,000 |
| Equipment | 270,000 | 200,000 |
| Accumulated |
(66,000) | (32,000) |
| Total | $597,000 | $555,000 |
| Liabilities and |
||
| Accounts pavable | $ 39.000 | $ 47,000 |
| Bonds pavable | 150,000 | 200,000 |
| Common stock ($1 par) | 216,000 | 174,000 |
| 192,000 | 134,000 | |
| Total | $597,000 | $555,000 |
Additional information:
1. Net income for 2017 was $93,000.
2. Cash dividends of $35,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2017, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2017 using the indirect method.
Prepare a statement of cash flaws—indirect method.
(LO 2). AP
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Mulder Corporation's comparative balance sheets are presented below:
MULDER CORPORATION
Balance Sheets
December 31
2017 2016
Cash $10,300 $3,900
Accounts receivable 6,200 14,400
Inventory 11,000 8,000
Land 32,000 28,000
Buildings 74,000 74,000
Accumulated depreciation - buildings (15,000) (12,000)
Total $118,500 $116,300
Accounts payable $17,370 $31,100
Common stock ($5 par) 60,000 60,000
Retained Earnings 41,130 25,200
Total $118,500 $116,300
Mulder's 2017 income statement included net sales of $140,000, cost of goods sold of $80,000 and net income of $20,000.
Compute the current ratio for 2017 of Mulder Corporation.
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2018
2017
Sales
$
1,800.0
$
1,500.0
Operating costs excluding depreciation and amortization
1,395.0
1,275.0
EBITDA
$
405.0
$
225.0
Depreciation and amortization
43.0
39.0
Earnings before interest and taxes (EBIT)
$
362.0
$
186.0
Interest
40.0
33.0
Earnings before taxes (EBT)
$
322.0
$
153.0
Taxes (40%)
128.8
61.2
Net income
$
193.2
$
91.8
Common dividends
$
174.0
$
73.0
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2018
2017
Assets
Cash and equivalents
$
23.0
$
18.0
Accounts receivable
248.0
225.0
Inventories
396.0
360.0
Total current assets
$
667.0
$
603.0
Net plant and equipment
429.0
390.0
Total assets
$
1,096.0
$
993.0
Liabilities and Equity
Accounts…
Delta Designs, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Total Current Assets
$32,250
$66,600
Property, Plant, and Equipment, Net
180,750
168,720
Other Assets
37,000
60,680
Total Assets
$250,000
$296,000
Liabilities
Total Current Liabilities
$30,500
$45,880
Long-term Debt
80,750
204,536
Total Liabilities
111,250
250,416
Stockholders' Equity
Total Stockholders' Equity
138,750
45,584
Total Liabilities and Stockholders' Equity
$250,000
$296,000
Perform a vertical analysis of
DeltaDelta
Designs' balance sheet for each year.
(Round the percent of total amounts to one decimal place, X.X%.)
Delta Designs, Inc.
Balance Sheet
December 31, 2018 and 2017
2018
Percent of Total…
Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making 7e + WileyPLUS Registration Card
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Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - During 2017. Doubleday Company converted 1,700.000...Ch. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 13.1BECh. 13 - Classify items by activities. (LO 1), C Classify...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - The management of Morrow Inc. is trying to decide...Ch. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Prob. 13.14BECh. 13 - Prob. 13.1DICh. 13 - Prob. 13.2DICh. 13 - Prob. 13.3DICh. 13 - Tabares Corporation had these transactions during...Ch. 13 - An analysis of comparative balance sheets, the...Ch. 13 - Cushenberry Corporation had the following...Ch. 13 - Prob. 13.4ECh. 13 - The current sections of Scoggin Inc.s balance...Ch. 13 - Prob. 13.6ECh. 13 - Rojas Corporations comparative balance sheets are...Ch. 13 - Here are comparative balance sheets for Velo...Ch. 13 - Prob. 13.9ECh. 13 - Compute net cash provided by operating...Ch. 13 - Suppose a recent income statement for McDonalds...Ch. 13 - Compute cash flow from operating activitiesdirect...Ch. 13 - The following information is taken from the 2017...Ch. 13 - You are provided with the following transactions...Ch. 13 - The following account balances relate to the...Ch. 13 - The income statement of Whitlock Company is...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.7APCh. 13 - Prob. 13.8APCh. 13 - Prob. 13.9APCh. 13 - Prob. 13.10APCh. 13 - Prob. 13.11APCh. 13 - Prob. 13.1BYPCh. 13 - Prob. 13.2BYPCh. 13 - Comparative Analysis Problem: Amazon.com, Inc. vs....Ch. 13 - Prob. 13.4BYPCh. 13 - Prob. 13.5BYPCh. 13 - Prob. 13.7BYPCh. 13 - Ethics Case Wesley Corp. is a medium-sized...Ch. 13 - Prob. 13.9BYP
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