ACC 291 week8 E13-8 and E14-3
E13-8 Here are comparative balance sheets for Taguchi Company.
TAGUCHI COMPANY
Comparative Balance Sheets
31-Dec
Assets 2011 2010
Cash $73,000 $22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000 170,000 189,000
Land 75,000 100,000 75,000 100,000
Equipment 260,000 200,000 260,000 200,000
Accumulated depreciation (66000) (32000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $39,000 $47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 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 2011, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2011 using the indirect method.
E14-3 The comparative condensed balance sheets of Conard Corporation are presented below.
CONARD CORPORATION
Comparative Condensed Balance Sheets
31-Dec
2012 2011
Assets
Current assets 74,000 $80,000
Property, plant, and equipment (net) 99,000 90,000
Intangibles 27,000 40,000
Total assets $200,000 $210,000
Liabilities and stockholders’ equity
Current liabilities $42,000 $48,000
Long-term liabilities 143,000 150,000
Stockholders’ equity 15,000 12,000
Total liabilities and stockholders’ equity $200,000 $210,000
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base.
(b) Prepare a vertical analysis of the balance sheet data for Conard Corporation in columnar form for 2012.
TUTORIAL PREVIEW
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TAGUCHI COMPANY
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Statement of Cash Flows
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For the Year Ended December 31, 2011
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Cash flows from operating activities :
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Net income
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$103,000
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Adjustments to reconcile net income
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to net cash provided by operating
activities
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Depreciation expense
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$34,000
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Increase in accounts receivable
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-9,000
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File name ACC 291 week 8 E13-8 E14-3.xlsx File type: xlsx PRICE:$15
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