CHECKLIST OF KEY FIGURES
For Exercises and Problems in
Kimmel, Weygandt, Kieso
FINANCIAL ACCOUNTING: TOOLS FOR BUSINESS DECISION MAKING, SEVENTH EDITION
Chapter 1
Exer.
No.
1-4
1-5
1-6
1-8
1-9
1-10
1-11
1-12
1-13
1-14
1-15
1-16
Net income $13,400.
Net income $12,901.3.
Ending retained earnings $290,000.
(b) Net income $34,286.
Common stock $30,000; Cost of goods sold $55,000.
(b) Ending retained earnings $27,000; total assets $128,000.
(b) Net income $1,208.
(a) Net increase in cash $18,000.
(a) Net increase in cash $823.
Total assets $79,500.
(b) Total assets $13,249.6; total liabilities $4,556.5.
(c) Dividends $30,000.
(f) Total revenues $140,000.
P1-3A Net income $3,800, Retained earnings $2,400, Total assets, $37,000
P1-4A Net cash provided by operating activities $28,000
P1-5A (b) Total assets $85,000
P1-3B Net income $4,200, Retained earnings $2,600, Total assets $78,000
P1-4B Net cash provided by operating activities $8,000
P1-5B (b) Net income $30,000
BYP 1-1 (e) Decrease in net income $9,125,000
BYP 1-2 Hershey’s net income $628,962; Tootsie Roll’s net income $43,938
BYP 1-7 Total assets $34,000
Chapter 2
Exer.
No.
2-3
2-4
2-5
2-6
Total current assets $34,309.
Total current assets $2,908,320.
Total assets $212,720.
Total assets $12,119.
2-7
2-8
2-9
2-10
2-11
(a) 2014 earnings per share $1.01.
(a) Net loss $(2,500).
(b) Total assets $51,480.
(a) Ending current ratio 2.01:1.
(b) Current ratio 2.0:1.
(b) 2014 Free cash flow ($45,536).
P2-1A Total assets $13,690
P2-2A Net income $21,400, Retained earnings $40,400, Total assets $73,700
P2-3A Net income $2,230, Retained earnings $3,505
Total assets $9,157
P2-4A (a) Earnings per share, Bosch $3.10, (c) Free cash flow: Fielder $1,000
P2-5A (ii) Current ratio 2.35:1 (iii) Free cash flow $67,800
P2-6A (b) 2014 Working capital $113,000 (e) 2014 Free cash flow $17,000
P2-7A (b) Current ratio: Target 1.66:1 Wal-Mart .88:1
(d) Free cash flow: Target $418 Wal-Mart $7,902
P2-1B Total assets $5,344
P2-2B Net income $6,200, Retained earnings $17,600, Total assets $33,800
P2-3B Net income $9,700, Retained earnings $20,860, Total assets $49,135
P2-4B (a) Earnings per share: Wise $.43 (c) Free cash flow: Omaz $26,000
P2-5B (i) Current ratio 2.0:1, (iv) Free cash flow $9,300
P2-6B (b) 2014 Working capital $116,000 (e) 2014 Free cash flow $60,000
P2-7B (b) Current ratio: Home Depot 1.2:1 Lowes .1.1:1
(d) Free cash flow: Home Depot $460 Lowes ($91)
BYP 2-1 (a) 2011 current assets $212,201,000
BYP 2-2 (a)
Hershey
Tootsie Roll
2. Current ratio
1.7:1
3.6:1
4. Free cash flow
($47,177)
$15,632
BYP 2-4 (a) Percentage decrease in total assets 17.3%
Chapter 3
Exer.
No.
3-2
Ending cash $15,000
3-3
Ending cash $56,800
3-4
(b) Stockholders’ equity increase $23,400.
(c) Net income $5,400.
3-5 Net income $5,400; Total assets $26,200.
3-10 (b) Totals $44,040.
3-11 (a) Total assets $38,300.
3-12 (b) Totals $21,700.
3-13 (b) Totals $18,100.
3-14 (b) Totals $21,200.
3-16 (a) Totals $98,370.
(b) Net income $5,214; Total assets $87,384.
P3-1A (a) Ending cash balance: $34,800; (b) Net income $9,100
P3-2A (a) Ending cash balance: $18,270; (b) Net income $2,170
P3-3A (a) Ending cash balance: $7,150; (b) Net income $2,570
P3-5A (b) Ending balances: Cash $18,800, Accounts Payable $1,000
(c) Trial balance totals $24,400
P3-6A (c) Ending balances: Cash $17,300
(d) Trial balance totals $35,700
P3-7A Trial balance totals $16,900
P3-8A (c) Ending balances: Cash $32,750, Accounts Payable $9,100
(d) Trial balance totals $128,800
P3-1B (a) Ending cash balance: $26,360; (b) Net income $7,410
P3-2B (a) Ending cash balance: $17,430; (b) Net income $2,770
P3-3B (a) Ending cash balance: $10,250; (b) Net income $8,130
P3-5B (b) Ending balances: Cash $103,200, Accounts Payable $400
(c) Trial balance totals $110,400
P3-6B (c) Ending balances: Cash $20,464, Accounts Payable $11,710
(d) Trial balance totals $63,540
P3-7B Trial balance totals $25,220
P3-8B (c) Ending balances: Cash $6,660 Accounts Payable $1,850
(d) Trial balance totals $86,890
CCC3 (c) Trial Balance totals $3,910
BYP 3-6 (c) Correct net income $5,900
Chapter 4
Exer.
No.
4-4
Accrual basis earnings $34,180.
4-5
(a) Cash basis income $7,600.
4-6
(a) Net income $16,125.
(b) Total assets $36,545.
4-12 Net income $2,040.
4-13 (a) $1,350; (c) $1,760.
4-17 Net income $14,100; Total assets $34,500.
P4-1A (b) Cash received $199,000
P4-2A (b) Ending balances: Prepaid Insurance $2,640, Salaries and Wages Expense $5,250
(c) Adjusted trial balance totals $45,310
P4-3A (b) Ending balances: Prepaid Insurance $1,350, Salaries and Wages Expense $900
(c) Adjusted trial balance totals $114,630; (d) Net income $3,570, Total assets $106,150
P4-4A (b) Net income $2,510, Retained earnings $1,910, Total assets $23,430
P4-6A (b) Net income $33,285
P4-7A (e) Ending balances: Cash $3,840, Salaries and Wages Expense $480
(f) Adjusted trial balance totals $24,680; (g) Net Income $970, Total assets $19,800
P4-8A (e) Ending balances: Cash $5,410, Retained Earnings $3,700
(f) Adjusted trial balance totals $25,880 (g) Net income $4,300, Total assets $21,500
P4-1B (b) Cash received $199,000
P4-2B (b) Ending balances: Prepaid Insurance $3,500, Salaries and Wages Expense $4,480
(c) Adjusted trial balance totals $36,580
P4-3B (b) Ending balances: Prepaid Insurance 3,900, Salaries and Wages Expense $53,600
(c) Adjusted trial balance totals $318,750; (d) Net income 10,850, Total assets $236,350
P4-4B (b) Net income $38,810, Retained earnings $34,310, Total assets $68,790
P4-6B (b) Net income $28,190
P4-7B (e) Ending balances: Cash $2,420, Salaries and Wages Expense $6,140
(f) Adjusted trial balance totals $27,990; (g) Net loss ($1,040), Total assets $19,300
P4-8B (e) Ending balances: Cash $6,200, Retained Earnings $1,650
(f) Adjusted trial balance totals $29,430 (g) Net income $2,550, Total assets $22,730
CCC4 (e) Adjusted trial balance totals $8,804
BYP 4-6 (a) Net income $16,790
BYP 4-9 Total assets $15,350
Chapter 5
Exer.
No.
5-1
5-3
5-4
5-5
5-6
5-7
5-8
5-9
5-10
5-11
5-13
(a) (5) Cash paid $23,912.
(a) (3) Cash received $ 470,250.
(a) Cash paid (June 19) $8,148.
Net sales $864,500.
(a) Net income $14,250.
(b) Profit margin -Yanik 14%;
Gross profit rate- Nunez 40%.
(a) Net income $63,500.
(a) Net income $535.
Cost of goods sold $154,700.
(b) $1,550, (d) $40, (f) $120,
(h) $640, (j) $5,000, (l) $44,530.
(a) (5) Cash paid $22,932.
P5-1A (b) Ending balances: Cash $3,496, Inventory $5,952
(c) Gross profit $2,828
P5-3A (b) Ending balances: Cash $1,587, Inventory $4,263
(c) Trial balance totals $8,150; (d) Gross profit $700
P5-4A (a) Net income $32,900, Retained earnings $35,100, Total assets $146,400
P5-5A Net income $67,500
P5-6A (b) Ending balances: Accumulated Depreciation- Equipment $47,500
(c) Adjusted trial balance totals $1,365,500
(d) Net income $81,100, Retained earnings $138,300, Total assets $399,000
P5-7A Gross profit $272,600
P5-8A (g) Purchases $32,960; (h) Cash payments $34,860
P5-9A (b) Ending balances: Cash $1,587; Accounts Receivable $850,
(c) Trial balance totals $8,427; (d) Gross profit $700
P5-1B (b) Ending balances: Cash $3,596, Inventory $8,544
(c) Gross profit $6,320
P5-3B (b) Ending balances: Cash $2,086, Inventory $3,244
(c) Trial balance totals $6,610; (d) Gross profit $460
P5-4B (a) Net income $28,300, Retained earnings $32,500, Total assets $313,800
P5-5B Net income $145,000
P5-6B (b) Ending balances: Accumulated Depreciation- Equipment $61,000
(c) Adjusted trial balance totals $1,015,400
(d) Net income $15,200, Retained earnings $33,200, Total assets $200,400
P5-7B Gross profit $257,000
P5-8B (b) Gross profit-2013, $78,100; 2015-$78,600
P5-9B (b) Ending balances: Cash $2,994; Accounts Receivable $280
(c) Trial balance totals $10,759; (d) Gross profit $470
CP (b) Ending balances: Cash $12,820, Inventory $8,720
(d) Adjusted trial balance totals $65,500
(e) Net income $540, Total assets $45,340
BYP 5-1 (a) 2010 to 2011 sales increased 2.1%
(c) 2011 gross profit rate 30.9%
BYP 5-2 (a)
Tootsie Roll
Hershey
(1) Profit margin
8.3%
10.3%
(3) Gross profit rate
30.9%
41.6%
BYP 5-4 (a) Gross profit rate: Carrefour 22.5%, Wal-Mart 22.5%
(b) Profit margin: Carrefour 2.5%, Wal-Mart 3.5%
BYP 5-6 (a) (1) Net income $62,000 (c) Net income $93,440
Chapter 6
Exer.
No.
6-1
6-2
6-4
6-5
6-7
6-8
6-9
6-10
Correct inventory $309,000.
Correct inventory $558,000.
Cost of goods sold: FIFO $10,515; LIFO $10,596.
(a) $729; (b) $767;(c) $746.36.
(a) Cost of goods sold: FIFO $2,640; LIFO $2,960; Average $2,813.
(a) LIFO Net income $14,700; (b) FIFO Net cash provided $28,000.
Total LCM $4,373.
2013: Inventory turnover 8.5; Gross profit rate 52.9%.
6-11
6-12
6-13
6-14
6-15
(a) Inventory turnover 5.98.
(b) Adjusted current ratio 2.53:1.
(a) Ending inventory: FIFO $1,580; LIFO $1,450; Moving average $1,528.
(a) FIFO $2,620; LIFO $2,596; Average $2,607.
2014 Cost of goods sold $161,000.
(a) 2014 Gross profit $71,000.
P6-2A (a) Cost of goods available for sale $137,000
(b) Ending inventory: FIFO $32,000, LIFO $21,500, Average cost $27,399
P6-3A (a) Cost of goods available for sale $16,800
(b) Ending inventory; FIFO $2,300, LIFO $1,700, Average cost $1,976
P6-4A Net income FIFO $183,456, LIFO $172,008
P6-5A Gross profit: LIFO $2,970, FIFO $3,310, Average cost $3,133
P6-6A (a) (1) Gross profit $162,500 (b) Cost of goods sold: FIFO $199,000, LIFO $206,150
P6-7A (a) Inventory turnover 11.5, (c) Current ratio .86:1
P6-8A (a) Ending Inventory: LIFO $1,500, FIFO $1,875, Moving average $1,773
P6-9A Ending inventory: FIFO $213, Moving average $207, LIFO $195
P6-2B (a) Cost of goods available for sale $77,100
(b) Ending inventory: FIFO $35,000 LIFO $20,600 Average cost $28,625
P6-3B (a) Cost of goods available for sale $18,900
(b) Ending inventory: FIFO $4,400, LIFO $2,950, Average cost $3,619
P6-4B Net income FIFO $189,735, LIFO $185,885
P6-5B Gross profit: LIFO $2,250, FIFO $2,570, Average cost $2,420
P6-6B (b) Gross profit: FIFO $174,000, LIFO $167,400
P6-7B (a) Inventory turnover 13.0 (c) Current ratio 1.10:1
P6-8B (a) Ending inventory: LIFO $1,625, FIFO $2,255, Moving average $2,017
P6-9B (a) Ending inventory: FIFO $1,428, Moving average $1,381, LIFO $1,318
CP (b) Ending balances: Inventory $2,342, Cost of Goods Sold $4,098
(c) Adjusted trial balance totals $41,055
(d) Net income $767, Total assets $34,262
(e) Ending inventory: FIFO $2,336, LIFO $1,800
BYP 6-1 (b) Percentage increase in inventories 26.7%
BYP 6-2 (a) Tootsie Roll days in inventory: 64.0 days
BYP 6-4 (c) 2014 Days in inventory: 93.6
BYP 6-6 (a) Inventory turnover–2014: 7.5, Days in inventory–2013: 45.1
Chapter 7
Exer.
No.
7-6
7-7
7-8
7-9
(a) Adj. cash bal. $3,497.20.
Total $1,560.
(a) Adj. cash bal. $9,342.
(a) Adj. cash bal. $18,855.
7-10
7-11
7-12
7-14
7-15
7-16
(a) $1,880; (b) $2,040.
(c) $1,700; (d) $2,600.
(c)Adj. cash bal. $18,740.
(a) Total $17,620.
End. cash bal. Jan. $24,000.
Cash over and short $1.30.
Cash over and short $3.40.
P7-3A
P7-4A
P7-5A
P7-6A
P7-7A
(a) Adjusted cash balance $7,024
(a) Adjusted cash balance $13,176.80
(a) Adjusted cash balance $8,931.90
Borrowings $1,800
January expected collections from customers $326,000,
January expected payments for purchases $110,000,
January: total receipts $341,000, total disbursements $344,000
P7-8A (a) Adjusted cash balance $21,018.72
P7-3B (a) Adjusted cash balance $6,163
P7-4B (a) Adjusted cash balance $7,141
P7-5B (a) Adjusted cash balance $5,330
P7-6B Repayments $600
P7-7B January expected collections from customers $279,500,
January expected payments for purchases $106,000,
January: total receipts $287,000, total disbursements $299,000
P7-8B (a) Adjusted cash balance $5,681.00
CP (b) Ending balances: Cash $27,420, Accounts Receivable $1,880
(f) Adjusted trial balance totals $89,925
(g) Net income $2,455, Total assets $73,180
BYP 7-2 (b) Cash as % of total assets – 2011: Tootsie Roll 9.2%
Chapter 8
Exer.
No.
8-1
8-2
8-3
8-4
8-5
8-6
8-7
8-8
8-9
8-11
8-13
Sales discounts $92.
Interest revenue $6.
(e) Accounts Receivable $229,700.
(b) $6,700; (c) $6,740.
(b) $6,575.
Bad debt exp. $9,500.
Interest revenue $761.
Interest revenue 2014 $100.
Net receivables $4,400.
(a) Accounts receivable turnover 9.2.
Service charge expense $28,400.
8-15
8-16
8-17
Service charge expense $152.
Service charge expense $10.
Collections $227,000.
P8-1A (a) Total estimated bad debts $10,120
P8-2A (b) Balance in Accounts Receivable $809,000
P8-3A (a) Bad Debt Expense $34,400
P8-4A (c) Bad Debt Expense $34,600
P8-5A (b) Bad Debt Expense $11,700
P8-8A (c) Total receivables $14,550
P8-9A (a) Nike: Average collection period 53.7 days
P8-1B (a) Total estimated bad debts $25,190
P8-2B (b) Balance in Accounts Receivable $1,218,000
P8-3B (c) Bad Debt Expense $33,400
P8-4B (c) Bad Debt Expense $22,000
P8-5B (b) Bad Debt Expense $10,100
P8-8B (c) Total receivables $14,449
P8-9B (a) Redbird: Average collection period 89.0 days
CP (b) Adjusted trial balance totals $70,447
(c) Net income $2,011, Total assets $45,253
BYP8-1 Accounts receivable turnover ratio: 13.3, average collection period, 27.4 days
BYP 8-2 (a) (2) Hershey average collection period 27.4 days
BYP 8-4 (a) Accounts receivable turnover 11.7
BYP 8-6 (a) 2014: Total expenses as a percentage of net credit sales 3.8%
2014: Net expenses as a percentage of net sales 4.3%
Chapter 9
Exer.
No.
9-3
9-5
9-6
9-7
9-8
9-10
9-11
9-12
9-13
9-14
9-17
9-18
(a) $93,600.
2014 depreciation $2,562.50.
(a) Building $13,375; Warehouse $6,227.
(b) $11,000 gain.
(c) $6,000 loss.
June 30 loss $1,000.
(a) 1.42.
(a) Return on assets-with 8%.
(a) Return on assets 6.2%.
Amort. Exp.-Patent $11,250.
Amort. Exp.-Patent $56,000;
Amort. Exp.-Franchise $30,000.
Net income (15-year) $102,000.
(a) $.575 per mile.
9-19
(b) 2015 depr. expense $29,900.
(a) 2015 depreciation $21,093.75.
(b) Depreciation $4,563.
P9-1A Land $302,170
P9-2A (a) May 1 Gain on disposal $10,000; (c) Total plant assets $50,037,500
P9-3A June 30 Gain on disposal $3,000
P9-4A (c) Total intangible assets $315,300
P9-6A (a) Danner (1) Return on assets 7.5%, (3) Asset turnover ratio .36 times
P9-7A (a) Machine 2 2013 $17,000; (b) 2013 $25,500
P9-8A (a) Straight-line depreciation expense $55,000 (all years)
2015 double-declining-balance depreciation $62,500
P9-1B Land $302,000
P9-2B (a) May 1 Gain on disposal $17,000; (c) Total plant assets $61,072,000
P9-3B March 31 Gain on disposal $1,750
P9-4B (c) Total intangible assets $260,850
P9-6B (a) Quiver (1) Return on assets 26.7%, (3) Asset turnover ratio .80 times
P9-7B (a) Machine 2 2013 $24,000; (b) 2013 $5,333
P9-8B (a) Straight-line depreciation expense $72,000 (all years)
2015 double-declining-balance depreciation $91,200
CP (a) 2. Gain on disposal $1,125
(b) Trial balance totals $1,205,775
(c) Net income $51,150, Total assets $247,850
BYP9-2 (a) Hershey (1) Return on assets 14.5%, (3) Asset turnover ratio 1.40
BYP 9-4 2011 Return on assets 7.1%
BYP 9-6 (a) Return on assets–proposed without .135
Asset turnover–proposed with .50
BYP 9-8 (c) Income before income taxes increase $155,000
Chapter 10
Exer.
No.
10-1
10-2
10-3
10-4
10-5
10-6
10-7
10-8
10-9
(c) $700.
(a) $18,000.
(d) $2,400.
Sales taxes pay.-Crystal $780.
(a) Salaries and wages payable $48,104.
(b) 11 games.
(b) $14,700.
(c) $44,100.
(b) Interest expense $17,500.
(b) Interest expense $24,000.
10-10
10-11
10-13
10-14
10-15
10-16
10-17
10-18
10-20
10-21
10-22
10-23
10-24
10-25
(b) $610,800.
(b) $488,000.
(b) Interest expense $28,000.
(a) Loss $14,900.
(b) Gain $17,400.
(b) Total long-term liab. $10,158.7.
(a) 2. 1.14:1; 4. 14.71.
(b) 2.28.
(b) 1.58:1.
(b) Interest expense $29,500.
(b) Interest expense $24,800.
(b) Interest expense $28,858.
(b) Interest expense $24,478.
First install. interest $8,400;
Second install. interest $8,223.
Reduction of principal $3,137.
P10-1A (c) Total current liabilities $146,724
P10-2A (b) Balance in Notes Payable $42,500; (d) Total interest expense $770
P10-5A (b) Long-term liabilities $5,888,000
P10-6A (a) 2014 Free cash flow ($2,457); 2014 times interest earned 3.14
P10-7A (c) Loss on bond redemption $11,600
P10-8A (c) Premium case: Total long-term liabilities $2,032,000
P10-9A (d) (1) Long-term liabilities $3,081,000
P10-10A (b) Bond carrying value $1,699,516
P10-11A (b) Bond carrying value $2,124,196
P10-12A (c) Total liabilities $296,141
P10-13A (a) June 30, 2017 Balance 34,188
P10-1B (c) Total current liabilities $133,901
P10-2B (b) Balance in Notes Payable $55,000; (d) Total interest expense $1,336
P10-5B (b) Long-term liabilities $5,135,000
P10-6B (a) 2014 Free cash flow $556; 2014 Debt to assets 78%
P10-7B (c) Gain on bond redemption $90,000
P10-8B (c) Premium case: Total long-term liabilities $2,235,200
P10-9B (d) (1) Long-term liabilities $3,078,750
P10-10B (b) Bond carrying value $2,115,727
P10-11B (b) Bond carrying value $1,699,357
P10-12B (c) Total liabilities $326,008
P10-13B (a) June 30, 2017 Balance $32,466
CP (b) Trial balance totals $687,695
(c) Net income $72,905, Total assets $271,600
BYP10-2 (a) Tootsie Roll: Current ratio 3.64:1
(b) Tootsie Roll: Debt to assets 22.4%
BYP10-4 (a) Home Depot working capital $2,076 (in millions), Current ratio 1.73:1
(b) Debt to assets 35%, Times interest earned 72.7 times
BYP10-5 (a) Borders current ratio 1.07:1
(b) Barnes debt to assets 76%
BYP10-7 (a) 1. Gain on redemption $446,000
BYP10-11 Total tax $24,454
Chapter 11
Exer.
No.
11-1
11-3
11-4
11-6
11-7
11-8
11-9
11-10
11-11
11-12
11-13
11-14
11-15
11-16
(b) Total paid-in cap. in excess of stated value $480,000.
(b) Paid-in capital in excess of par value $400,000.
(a) 574,000; (c) $100; (e) $1,158,000.
(b) Dividends declared $220,300.
Outstanding shares: after stock div. 85,050; After stock split 162,000.
Total stock. equity $109,219.
Total stock. equity $4,557,000.
Total stock. equity $3,030,000.
2014 payout ratio 59.1%.
2014 payout ratio 23.5%.
(a) 2014 return 17.4%..
(a) Earnings per share $4.00.
(a) 2014 $4.20
(b) Stock Dividends dr. $324,000.
P11-1A (b) Preferred Stock $750,000, Paid-in Capital in Excess of Par Value - Preferred Stock
$54,000; (c) Total paid-in capital $1,829,000
P11-2A (b) Common Stock $1,020,000, Paid-in Capital in Excess of Stated Value - Common
Stock $490,000; (c) Total stockholders’ equity $2,600,500
P11-3A Total stockholders’ equity $23,153,000
P11-4A (a) Retained Earnings balance $2,860,000
(b) Total stockholders’ equity $7,160,000
P11-5A (b) Total paid-in capital $3,690,000, Total stockholders’ equity $3,736,000
P11-6A Total stockholders’ equity $3,317,000
P11-7A 2014 Return on assets 14.3%, 2014 Payout ratio 39.7%, 2014 Times interest earned 6.8
P11-8A (c) Total paid-in capital $1,298,000, Total stockholders’ equity $2,138,800; (d) Payout
ratio 20.3%, Return on common stockholders’ equity 20.2%
P11-1B (b) Preferred Stock $900,000, Paid-in Capital in Excess of Par Value - Preferred Stock
$22,000; (c) Total paid-in capital $1,470,000
P11-2B (b) Common Stock $1,020,000, Paid-in Capital in Excess of Stated Value – Common
Stock $1,540,000; (c) Total stockholders’ equity $4,543,600
P11-3B Total stockholders’ equity $21,260,000
P11-4B (a) Retained Earnings balance $720,000; (b) Total stockholders’ equity $5,290,000
P11-5B Total paid-in capital $9,452,000, Total stockholders’ equity $12,402,000
P11-6B Total stockholders’ equity $7,181,000
P11-7B (a) 2014 Return on assets 15.1%, 2014 Payout ratio 33.8%, 2014 Times interest earned
9.1
P11-8B (c) Total paid-in capital $2,140,000, Total stockholders equity $2,918,000; (d) Payout
ratio 34.4%, Return on common stockholders’ equity 18.2%
CP (b) Adjusted trial balance totals $740,690
(c) Net income $81,970, Total assets $421,000
BYP 11-1 (d) Return on common stockholders’ equity 6.6%
BYP 11-2 Hershey: Return on common stockholders’ equity 69.5%
BYP 11-5 (b) Host Marriott: Debt to assets ratio 81.4%
(c) Host Marriott: Return on assets (.7%)
BYP 11-7 (a) Return on assets 9.6%; (b) Payout ratio 13.8%; (c) Times interest earned 11.2
times
Chapter 12
Exer.
No.
12-4
12-5
12-6
12-7
12-8
12-9
12-10
12-11
12-12
12-13
12-14
12-15
Net cash provided $228,000.
Net cash provided $191,000.
Net cash provided $427,900.
Net cash provided $108,000.
(a) Net cash provided $133,000.
(a) PepsiCo. .77 times.
(b) Coca-Cola .38 times.
(a) Patton 1.6 times.
(b) Sager 0.40 times.
Net cash provided $78,000.
(a) $5,157.1; (b) $9,351.9.
Net cash provided $61,000.
Net cash provided $88,600.
Rent $31,500; Receipts from customers $169,000.
P12-2A (a) Net income $58,800
P12-3A Net cash provided by operating activities $1,940,000
P12-4A Net cash provided by operating activities $1,940,000
P12-5A Net cash provided by operating activities $305,000
P12-6A Net cash provided by operating activities $305,000
P12-7A Net cash provided by operating activities $38,500, Net cash used by financing
activities ($32,000)
P12-8A Net cash provided by operating activities $38,500, Net cash used by financing
activities ($32,000)
P12-9A Net cash provided by operating activities $176,930, Net cash used by financing
activities ($17,030)
P12-10A Net cash provided by operating activities $176,930, Net cash used by financing
activities ($17,030)
P12-11A Net cash provided by operating activities $94,000, Net cash used by investing
activities ($12,000)
P12-2B (a) Cash proceeds $5,000
P12-3B Net cash provided by operating activities $1,548,000
P12-4B Net cash provided by operating activities $1,548,000
P12-5B Net cash provided by operating activities $254,000
P12-6B Net cash provided by operating activities $254,000
P12-7B Net cash provided by operating activities $8,000, Net cash used by financing
activities ($18,000)
P12-8B Net cash provided by operating activities $8,000, Net cash used by financing
activities ($18,000)
P12-9B Net cash provided by operating activities $179,000, Net cash used by financing
activities ($55,000)
P12-10B Net cash provided by operating activities $179,000, Net cash used by financing
activities ($55,000)
P12-11B Net cash provided by operating activities $75,000, Net cash used by investing activities
($45,000)
BYP 12-2 (a) Hershey: 1. Current cash debt coverage .47, 2. Cash debt coverage .17
BYP 12-5 (a) Current ratio 1.31, Current cash debt coverage (.13)
BYP 12-7 (b) Net cash provided by operating activities $15,000
Chapter 13
Exer.
No.
13-1
13-2
13-3
13-4
13-5
13-6
13-7
13-8
13-9
13-10
13-11
13-12
13-13
Net income $289,000.
(e) 75,514,706.
Total assets increase 15.0%.
Net income: 2013, 8.0%; 2014, 8.8%.
(a) Total assets increase 6.5%.
(b) Current assets 73.5%.
(a) Net income increase 13.9%.
(b) Net income-2014 6.8%.
Current cash debt .69; Accounts receivable turnover 4.2; Inventory turnover 5.9.
Feb. 7, 2.43; Feb. 18, 2.66.
(b) 5.4; (d) 3.6; (f) .31.
(b) 1.64; (d) 7.6%.
(a) $1.86; (c) 22.2%.
(a) $722,000; (c) $111,595.
(b) 2014 2.28; (e) 2014 24.2%.
P13-1A (a) King Company: Income from operations as a percent of sales 32.1%, Net income as
a percent of sales 26.3%
P13-2A (a) Earnings per share $3.69; (c) Return on assets 23.2%; (e) Accounts receivable
turnover 17.1 times (i) Times interest earned 15.1 times
P13-3A (a) 2014 Profit margin 13.6%, Price-earnings ratio 2.8 times, Debt to assets 32%
P13-4A (a) 2014: Current ratio 1.76, Inventory turnover 3.2 times, Profit margin 5.9%, Earnings
per share $2.60
P13-5A (a) Target: Current ratio 1.63:1, Asset turnover 1.5, Times interest earned 6.5
P13-1B (a) Gerald Company: Income from operations as a percent of sales 23.8%, Net income
as a percent of sales 18.5%
P13-2B (a) Earnings per share $8.51; (c) Return on assets 16.7%; (e) Accounts receivable
turnover 8.2 times; (i) Times interest earned 16.4 times
P13-3B (a) 2014 Profit margin 14.5%, Price-earnings ratio 0.94 times, Debt to assets 28%
P13-4B (a) 2014: Current ratio 2.03:1, Inventory turnover 1.86 times, Profit margin 12.4%,
Earnings per share $1.30
P13-5B (a) Ritter: Current ratio 2.83:1, Asset turnover 1.7, Times interest earned 598.1
BYP 13-1 (a) 2011 (1) Net sales trend 107% of base year; (b) (1) 2011 debt to assets 22%
BYP 13-2 (a) Tootsie Roll: (1) Percentage increase in net sales 2.2%, (2) Percentage increase in
total assets 0.0%
BYP13-5 (a) Coca-Cola: Current ratio 1.28:1, Accounts receivable turnover 9.1 times; (b) Times
interest earned 26.0 times; (c) Return on assets 15.3%
Appendix D
Exer.
No.
D-1
D-4
D-5
D-8
D-11
D-13
D-15
D-16
D-19
D-21
D-23
(b) $14,366,88.
$981,075.42.
$37,800.33.
(b) $125,605.76.
$467,084.70.
Present value of interest $183,469.45.
Present value of interest $17,751.86.
Present value of bonds $2,459,105.
$105,169.42.
12 years.
8 payments.
Appendix E
Exer.
No.
E-1 (a) Gain on sale $2,000.
E-2
E-3
E-4
E-5
E-6
E-7
E-8
(a) Gain on sale $1,900.
Gain on sale $2,800.
(b) $225,000.
(a) Unrealized gain $72,000.
(a) Unrealized loss $4,800.
(a) Unrealized loss $4,800.
(a) Unrealized gain-income $12,000.
PE-1 (a) Gain on sale $30,000
PE-2 (a) Stock Investments balance $61,500
(c) Short-term investments, at fair value $54,000
PE-3 (a) Stock Investments balance $86,400
(c) Investments in stock of less than 20% owned companies, at fair value $89,700
PE-4 (c) Revenue from stock investments under equity method $240,000
PE-5 (d) Investments in stock of less than 20% owned companies, at fair value $155,000
PE-6 Total current assets $461,000, Total assets $2,644,000