Week 5

Those having issues with week 5 questions					Question 1

Pioneer Corporation had the transactions below during 2011.

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.

(a)	Issued $50,000 par value common stock for cash.	Financing activitiesNoncash investing and financing activitiesInvesting activitiesOperating activities
(b)	Purchased a machine for $30,000, giving a long-term note in exchange.	Noncash investing and financing activitiesFinancing activitiesInvesting activitiesOperating activities
(c)	Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.	Noncash investing and financing activitiesFinancing activitiesInvesting activitiesOperating activities
(d)	Declared and paid a cash dividend of $18,000.	Financing activitiesNoncash investing and financing activitiesInvesting activitiesOperating activities
(e)	Sold a long-term investment with a cost of $15,000 for $15,000 cash.	Investing activitiesFinancing activitiesNoncash investing and financing activitiesOperating activities
(f)	Collected $16,000 of accounts receivable.	Operating activitiesFinancing activitiesNoncash investing and financing activitiesInvesting activities
(g)	Paid $18,000 on accounts payable.	Operating activitiesFinancing activitiesNoncash investing and financing activitiesInvesting activities

Question 2

 

TAGUCHI COMPANY Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities         Net incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockRedemption of bondsPayments of cash dividends   $    Adjustments to reconcile net income          to net cash provided by operating activities              Depreciation expenseNet incomeIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockRedemption of bondsPayments of cash dividends $            Decrease in inventoryNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockRedemption of bondsPayments of cash dividends            Increase in accounts receivableNet incomeDepreciation expenseDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockRedemption of bondsPayments of cash dividends            Decrease in accounts payableNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockRedemption of bondsPayments of cash dividends         Net cash  providedused by operating activities         Cash flows from investing activities              Sale of landNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payablePurchase of equipmentIssuance of common stockRedemption of bondsPayments of cash dividends            Purchase of equipmentNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landIssuance of common stockRedemption of bondsPayments of cash dividends          Net cash  usedprovided by investing activities         Cash flows from financing activities              Issuance of common stockNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentRedemption of bondsPayments of cash dividends            Redemption of bondsNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockPayments of cash dividends            Payments of cash dividendsNet incomeDepreciation expenseIncrease in accounts receivableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryDecrease in accounts payableIncrease in accounts payableSale of landPurchase of equipmentIssuance of common stockRedemption of bonds           Net cash  usedprovided by financing activities         Net  increasedecrease in cash   Cash at beginning of period   Cash at end of period   $

question 3
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

Complete the schedule showing a horizontal analysis for 2012 using 2011 as the base year. (If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round percentages to 1 decimal place, e.g. 10.5. List items in the order given in the question.)

BLEVINS INC.
Condensed Balance Sheet
December 31
			Increase or (Decrease)
	2012	2011	Amount	Percentage
Assets
Current assetsPlant assets (net)Current liabilitiesLong-term liabilitiesCommon stock, $1 parRetained earnings	$	$	$	%
Plant assets (net)Current assetsCurrent liabilitiesLong-term liabilitiesCommon stock, $1 parRetained earnings				%
Total assets	$	$	$	%
Liabilities
Current liabilitiesCurrent assetsPlant assets (net)Long-term liabilitiesCommon stock, $1 parRetained earnings	$	$	$	%
Long-term liabilitiesCurrent assetsPlant assets (net)Current liabilitiesCommon stock, $1 parRetained earnings				%
Total liabilities	$	$	$	%
Stockholders' Equity
Common stock, $1 parCurrent assetsPlant assets (net)Current liabilitiesLong-term liabilitiesRetained earnings	$	$	$	%
Retained earningsCurrent assetsPlant assets (net)Current liabilitiesLong-term liabilitiesCommon stock, $1 par				%
Total stockholders equity	$	$	$	%
Total liabilities and stockholders' equity	$	$	$	%

Question 4
ARMA INC.Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities        Net incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds $     Adjustments to reconcile net income to net          cash provided by operating activities           Depreciation expenseNet incomeLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds$          Increase in accounts payableNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Loss on sale of plant assetsNet incomeDepreciation expenseIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Increase in accounts receivableNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Increase in inventoryNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Increase in prepaid expensesNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Decrease in accrued expenses payableNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds

        Net cash  providedused by operating activities    Cash flows from investing activities           Sale of plant assetsNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payablePurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Purchase of plant assetsNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds          Purchase of investmentsNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsSale of common stockPayment of cash dividendsRedemption of bonds

              Net cash  usedprovided by investing activities    Cash flows from financing activities           Sale of common stockNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsPayment of cash dividendsRedemption of bonds          Payment of cash dividendsNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockRedemption of bonds          Redemption of bondsNet incomeDepreciation expenseLoss on sale of plant assetsIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividends

            Net cash  usedprovided by financing activities 

   Net  increasedecrease in cash Cash at beginning of period 

Cash at end of period 

$

Question 5

ARMA INC.
Statement of Cash Flows
For the Year Ended December 31, 2011
Cash flows from operating activities
Cash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds		$
Less cash payments
To suppliersCash receipts from customersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds	$
For income taxesCash receipts from customersTo suppliersFor operating expensesFor interestSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds
For operating expensesCash receipts from customersTo suppliersFor interestFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds
For interestCash receipts from customersTo suppliersFor operating expensesFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds
Net cash  providedused by operating activities
Cash flows from investing activities
Sale of plant assetsCash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds
Purchase of plant assetsCash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of investmentsSale of common stockPayment of cash dividendsRedemption of bonds
Purchase of investmentsCash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of plant assetsSale of common stockPayment of cash dividendsRedemption of bonds
Net cash  usedprovided by investing activities
Cash flows from financing activities
Sale of common stockCash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsPayment of cash dividendsRedemption of bonds
Payment of cash dividendsCash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockRedemption of bonds
Redemption of bondsCash receipts from customersTo suppliersFor operating expensesFor interestFor income taxesSale of plant assetsPurchase of plant assetsPurchase of investmentsSale of common stockPayment of cash dividends
Net cash  usedprovided by financing activities
Net  increasedecrease in cash
Cash at beginning of period
Cash at end of period		$

Question 6

(a)	Earnings per share	$
(b)	Return on common stockholders' equity	%
(c)	Return on assets	%
(d)	Current	:1
(e)	Acid-test	:1
(f)	Receivables turnover	times
(g)	Inventory turnover	times
(h)	Times interest earned	times
(i)	Asset turnover	times
(j)	Debt to total assets	%