TRAHAN COMPANY
Comparative Balance Sheets
December 31
Assets 2012 2011
Cash $38,000 $20,000
Accounts receivable 33,000 14,000
Merchandise inventory 27,000 20,000
Property, plant, and equipment 60,000 78,000
Accumulated depreciation
(32,000)
(24,000)
Total
$126,000
$108,000
Liabilities and Stockholders' Equity
Accounts payable $24,000 $15,000
Income taxes payable 7,000 8,000
Bonds payable 27,000 33,000
Common stock 18,000 14,000
Retained earnings
50,000
38,000
Total
$126,000
$108,000
TRAHAN COMPANY
Income Statement
For the Year Ended December 31, 2012
Sales $242,000
Cost of goods sold
175,000
Gross profit 67,000
Selling expenses $18,000
Administrative expenses
6,000
24,000
Income from operations 43,000
Interest expense
3,000
Income before income taxes 40,000
Income tax expense
8,000
Net income
$32,000
Additional data:
1. Dividends declared and paid were $20,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.-------------------
TRAHAN COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2012
Cash flows from operating activities
$____
Adjustments to reconcile net income to net
cash provided by operating activities
$ ____
____
____
____
____
Net cash _____(used/provide)by operating activities
____
Cash flows from investing activities
____
Cash flows from financing activities
___
___
___
Net cash by financing activities ____
Net in cash ____
Cash at beginning of period ____
Cash at end of period ____
$
(b) Compute these cash-basis measures: (Round all ratios to 2 decimal places, e.g. 2.25. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
Current cash debt coverage ratio ______ times
Cash debt coverage ratio ____ times
Free cash flow $____
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