Reference no: EM131104077
Question 1:
Condensed financial data of Odgers Inc. follow.
|
ODGERS INC.
Comparative Balance Sheets
December 31
|
|
Assets
|
|
2014
|
|
|
2013
|
|
|
Cash
|
|
$ 80,800
|
|
|
$ 48,400
|
|
|
Accounts receivable
|
|
87,800
|
|
|
38,000
|
|
|
Inventory
|
|
112,500
|
|
|
102,850
|
|
|
Prepaid expenses
|
|
28,400
|
|
|
26,000
|
|
|
Long-term investments
|
|
138,000
|
|
|
109,000
|
|
|
Plant assets
|
|
285,000
|
|
|
242,500
|
|
|
Accumulated depreciation
|
|
(50,000
|
)
|
|
(52,000
|
)
|
|
Total
|
|
$682,500
|
|
|
$514,750
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ 102,000
|
|
|
$ 67,300
|
|
|
Accrued expenses payable
|
|
16,500
|
|
|
21,000
|
|
|
Bonds payable
|
|
110,000
|
|
|
146,000
|
|
|
Common stock
|
|
220,000
|
|
|
175,000
|
|
|
Retained earnings
|
|
234,000
|
|
|
105,450
|
|
|
Total
|
|
$682,500
|
|
|
$514,750
|
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
|
|
Sales revenue
|
|
|
|
$388,460
|
|
Less:
|
|
|
|
|
|
Cost of goods sold
|
|
$135,460
|
|
|
|
Operating expenses, excluding depreciation
|
|
12,410
|
|
|
|
Depreciation expense
|
|
46,500
|
|
|
|
Income tax expense
|
|
27,280
|
|
|
|
Interest expense
|
|
4,730
|
|
|
|
Loss on disposal of plant assets
|
|
7,500
|
|
233,880
|
|
Net income
|
|
|
|
$ 154,580
|
Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Question 2:
Condensed financial data of Odgers Inc. follow.
|
ODGERS INC.
Comparative Balance Sheets
December 31
|
|
Assets
|
|
2014
|
|
|
2013
|
|
|
Cash
|
|
$ 80,800
|
|
|
$ 48,400
|
|
|
Accounts receivable
|
|
87,800
|
|
|
38,000
|
|
|
Inventory
|
|
112,500
|
|
|
102,850
|
|
|
Prepaid expenses
|
|
28,400
|
|
|
26,000
|
|
|
Long-term investments
|
|
138,000
|
|
|
109,000
|
|
|
Plant assets
|
|
285,000
|
|
|
242,500
|
|
|
Accumulated depreciation
|
|
(50,000
|
)
|
|
(52,000
|
)
|
|
Total
|
|
$682,500
|
|
|
$514,750
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ 102,000
|
|
|
$ 67,300
|
|
|
Accrued expenses payable
|
|
16,500
|
|
|
21,000
|
|
|
Bonds payable
|
|
110,000
|
|
|
146,000
|
|
|
Common stock
|
|
220,000
|
|
|
175,000
|
|
|
Retained earnings
|
|
234,000
|
|
|
105,450
|
|
|
Total
|
|
$682,500
|
|
|
$514,750
|
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
|
|
Sales revenue
|
|
|
|
$388,460
|
|
Less:
|
|
|
|
|
|
Cost of goods sold
|
|
$135,460
|
|
|
|
Operating expenses, excluding depreciation
|
|
12,410
|
|
|
|
Depreciation expense
|
|
46,500
|
|
|
|
Income taxes
|
|
27,280
|
|
|
|
Interest expense
|
|
4,730
|
|
|
|
Loss on disposal of plant assets
|
|
7,500
|
|
233,880
|
|
Net income
|
|
|
|
$ 154,580
|
Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Question 3:
Condensed financial data of Odgers Inc. follow.
|
ODGERS INC.
Comparative Balance Sheets
December 31
|
|
Assets
|
|
2014
|
|
|
2013
|
|
|
Cash
|
|
$ 80,800
|
|
|
$ 48,400
|
|
|
Accounts receivable
|
|
87,800
|
|
|
38,000
|
|
|
Inventory
|
|
112,500
|
|
|
102,850
|
|
|
Prepaid expenses
|
|
28,400
|
|
|
26,000
|
|
|
Long-term investments
|
|
138,000
|
|
|
109,000
|
|
|
Plant assets
|
|
285,000
|
|
|
242,500
|
|
|
Accumulated depreciation
|
|
(50,000
|
)
|
|
(52,000
|
)
|
|
Total
|
|
$682,500
|
|
|
$514,750
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ 102,000
|
|
|
$ 67,300
|
|
|
Accrued expenses payable
|
|
16,500
|
|
|
21,000
|
|
|
Bonds payable
|
|
110,000
|
|
|
146,000
|
|
|
Common stock
|
|
220,000
|
|
|
175,000
|
|
|
Retained earnings
|
|
234,000
|
|
|
105,450
|
|
|
Total
|
|
$682,500
|
|
|
$514,750
|
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
|
|
Sales revenue
|
|
|
|
$388,460
|
|
Less:
|
|
|
|
|
|
Cost of goods sold
|
|
$135,460
|
|
|
|
Operating expenses, excluding depreciation
|
|
12,410
|
|
|
|
Depreciation expense
|
|
46,500
|
|
|
|
Income taxes
|
|
27,280
|
|
|
|
Interest expense
|
|
4,730
|
|
|
|
Loss on disposal of plant assets
|
|
7,500
|
|
233,880
|
|
Net income
|
|
|
|
$ 154,580
|
Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Question 4:
The comparative statements of Osborne Company are presented here.
|
OSBORNE COMPANY
Income Statements
For the Years Ended December 31
|
|
|
2014
|
|
2013
|
|
Net sales
|
|
$1,890,540
|
|
$1,750,500
|
|
Cost of goods sold
|
|
1,058,540
|
|
1,006,000
|
|
Gross profit
|
|
832,000
|
|
744,500
|
|
Selling and administrative expenses
|
|
500,000
|
|
479,000
|
|
Income from operations
|
|
332,000
|
|
265,500
|
|
Other expenses and losses
|
|
|
|
|
|
Interest expense
|
|
22,000
|
|
20,000
|
|
Income before income taxes
|
|
310,000
|
|
245,500
|
|
Income tax expense
|
|
92,000
|
|
73,000
|
|
Net income
|
|
$ 218,000
|
|
$ 172,500
|
|
OSBORNE COMPANY
Balance Sheets
December 31
|
|
Assets
|
|
2014
|
|
2013
|
|
Current assets
|
|
|
|
|
|
Cash
|
|
$ 60,100
|
|
$ 64,200
|
|
Debt investments (short-term)
|
|
74,000
|
|
50,000
|
|
Accounts receivable
|
|
117,800
|
|
102,800
|
|
Inventory
|
|
126,000
|
|
115,500
|
|
Total current assets
|
|
377,900
|
|
332,500
|
|
Plant assets (net)
|
|
649,000
|
|
520,300
|
|
Total assets
|
|
$1,026,900
|
|
$852,800
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$ 160,000
|
|
$145,400
|
|
Income taxes payable
|
|
43,500
|
|
42,000
|
|
Total current liabilities
|
|
203,500
|
|
187,400
|
|
Bonds payable
|
|
220,000
|
|
200,000
|
|
Total liabilities
|
|
423,500
|
|
387,400
|
|
Stockholders' equity
|
|
|
|
|
|
Common stock ($5 par)
|
|
290,000
|
|
300,000
|
|
Retained earnings
|
|
313,400
|
|
165,400
|
|
Total stockholders' equity
|
|
603,400
|
|
465,400
|
|
Total liabilities and stockholders' equity
|
|
$1,026,900
|
|
$852,800
|
All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000.
Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Further analysis reveals that accounts payable pertain to merchandise creditors.
Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000.
Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
(a) Earnings per share $
(b) Return on common stockholders' equity %
(c) Return on assets %
(d) Current ratio :1
(e) Accounts receivable turnover times
(f) Average collection period days
(g) Inventory turnover times
(h) Days in inventory days
(i) Times interest earned times
(j) Asset turnover times
(k) Debt to assets %
(l) Current cash debt coverage times
(m) Cash debt coverage times
(n) Free cash flow $
Question 5:
The following control procedures are used in Kelton Company for over-the-counter cash receipts.
(a) For each procedure, explain the weakness in internal control and identify the control principle that is violated.
Procedure
1. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy.
2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.
3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.
4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.
5. The company accountant makes the bank deposit and then records the day's receipts.
Question 6:
The financial statements of The Hershey Company and Tootsie Roll are presented below.
|
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
For the years ended December 31,
|
|
2011
|
|
2010
|
|
2009
|
|
|
In thousands of dollars except per share amounts
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$6,080,788
|
|
|
$5,671,009
|
|
$5,298,668
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
3,548,896
|
|
|
3,255,801
|
|
3,245,531
|
|
|
Selling, marketing and administrative
|
|
1,477,750
|
|
|
1,426,477
|
|
1,208,672
|
|
|
Business realignment and impairment (credits) charges, net
|
|
(886
|
)
|
|
83,433
|
|
82,875
|
|
|
Total costs and expenses
|
|
5,025,760
|
|
|
4,765,711
|
|
4,537,078
|
|
|
Income before Interest and Income Taxes
|
|
1,055,028
|
|
|
905,298
|
|
761,590
|
|
|
Interest expense, net
|
|
92,183
|
|
|
96,434
|
|
90,459
|
|
|
Income before Income Taxes
|
|
962,845
|
|
|
808,864
|
|
671,131
|
|
|
Provision for income taxes
|
|
333,883
|
|
|
299,065
|
|
235,137
|
|
|
Net Income
|
|
$628,962
|
|
|
$509,799
|
|
$435,994
|
|
|
Net Income Per Share-Basic-Class B Common Stock
|
|
$2.58
|
|
|
$2.08
|
|
$1.77
|
|
|
Net Income Per Share-Diluted-Class B Common Stock
|
|
$2.56
|
|
|
$2.07
|
|
$1.77
|
|
|
Net Income Per Share-Basic-Common Stock
|
|
$2.85
|
|
|
$2.29
|
|
$1.97
|
|
|
Net Income Per Share-Diluted-Common Stock
|
|
$2.74
|
|
|
$2.21
|
|
$1.90
|
|
|
Cash Dividends Paid Per Share:
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
$1.3800
|
|
|
$1.2800
|
|
$1.1900
|
|
|
Class B Common Stock
|
|
1.2500
|
|
|
1.1600
|
|
1.0712
|
|
|
The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.
|
|
|
THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS
|
|
|
December 31,
|
|
2011
|
|
2010
|
|
|
In thousands of dollars
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$693,686
|
|
|
$884,642
|
|
|
|
Accounts receivable-trade
|
|
399,499
|
|
|
390,061
|
|
|
|
Inventories
|
|
648,953
|
|
|
533,622
|
|
|
|
Deferred income taxes
|
|
136,861
|
|
|
55,760
|
|
|
|
Prepaid expenses and other
|
|
167,559
|
|
|
141,132
|
|
|
|
Total current assets
|
|
2,046,558
|
|
|
2,005,217
|
|
|
|
Property, Plant and Equipment, Net
|
|
1,559,717
|
|
|
1,437,702
|
|
|
|
Goodwill
|
|
516,745
|
|
|
524,134
|
|
|
|
Other Intangibles
|
|
111,913
|
|
|
123,080
|
|
|
|
Deferred Income Taxes
|
|
38,544
|
|
|
21,387
|
|
|
|
Other Assets
|
|
138,722
|
|
|
161,212
|
|
|
|
Total assets
|
|
$4,412,199
|
|
|
$4,272,732
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$420,017
|
|
|
$410,655
|
|
|
|
Accrued liabilities
|
|
612,186
|
|
|
593,308
|
|
|
|
Accrued income taxes
|
|
1,899
|
|
|
9,402
|
|
|
|
Short-term debt
|
|
42,080
|
|
|
24,088
|
|
|
|
Current portion of long-term debt
|
|
97,593
|
|
|
261,392
|
|
|
|
Total current liabilities
|
|
1,173,775
|
|
|
1,298,845
|
|
|
|
Long-term Debt
|
|
1,748,500
|
|
|
1,541,825
|
|
|
|
Other Long-term Liabilities
|
|
617,276
|
|
|
494,461
|
|
|
|
Total liabilities
|
|
3,539,551
|
|
|
3,335,131
|
|
|
|
Commitments and Contingencies
|
|
-
|
|
|
-
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
The Hershey Company Stockholders' Equity
|
|
|
|
|
|
|
|
|
Preferred Stock, shares issued: none in 2011 and 2010
|
|
-
|
|
|
-
|
|
|
|
Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in 2010
|
|
299,269
|
|
|
299,195
|
|
|
|
Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010
|
|
60,632
|
|
|
60,706
|
|
|
|
Additional paid-in capital
|
|
490,817
|
|
|
434,865
|
|
|
|
Retained earnings
|
|
4,699,597
|
|
|
4,374,718
|
|
|
|
Treasury-Common Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010
|
|
(4,258,962
|
)
|
|
(4,052,101
|
)
|
|
|
Accumulated other comprehensive loss
|
|
(442,331
|
)
|
|
(215,067
|
)
|
|
|
The Hershey Company stockholders' equity
|
|
849,022
|
|
|
902,316
|
|
|
|
Noncontrolling interests in subsidiaries
|
|
23,626
|
|
|
35,285
|
|
|
|
Total stockholders' equity
|
|
872,648
|
|
|
937,601
|
|
|
|
Total liabilities and stockholders'equity
|
|
$4,412,199
|
|
|
$4,272,732
|
|
|
Tables in attached document
1. THE HERSHEY COMPANY CONSOLIDATED BALANCE SHEETS
2. THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS
3. TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
4. CONSOLIDATED STATEMENTS OF Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
5. TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands)
The percentage increase (i) in net sales and (ii) in net income from 2010 to 2011. (Round answers to 1 decimal places, e.g. 15.2%. Enter negative amounts using either a negative sign preceding the number e.g. -15.2% or parentheses e.g. (15.2)%.)
The percentage increase (i) in total assets and (ii) in total stockholders' equity from 2010 to 2011. (Round answers to 1 decimal place, e.g. 15.2%. Enter negative amounts using either a negative sign preceding the number e.g. -15.2% or parentheses e.g. (15.2)%.)
The earnings per share for 2011. (Round answers to 2 decimal places, e.g. 15.25.)
Attachment:- assignments.rar