Archives: Solution Manual
978-0077862381 Chapter 13 Solution Manual Part 3
25 Minutes, Easy a. Cash flows from investin g activities: Purchases of marketable securities (78,000)$ Proceeds from sales of marketable securities ( 1 ) 46,000 Loans made to borrowers (55,000) Collections on loans 62,000 Cash p aid to ac q […]
978-0077862381 Chapter 13 Solution Manual Part 2
Ex. 13.1 a. b. Ex. 13.2 a. 280$ (30) b. none $ 140 $ 150 c. The gain on the sale of marketable securities represents a reclassification of this item from the operating activities section of the statement of cash […]
978-0077862381 Chapter 13 Solution Manual Part 1
CHAPTER 13 STATEMENT OF CASH FLOW S Brief Learning Exercises Objectives Skills B. Ex. 13.1 Cash flows from operations (direct) 13-3 Analysis B. Ex. 13.2 Cash flows from operations (indirect) 13-7 Analysis B. Ex. 13.3 Cash flows from operations (direct) […]
978-0077862381 Chapter 13 Lecture Note
Chapter 13 – Statement of Cash Flows 13 STATEMENT OF CASH FLOWS Chapter Summary The statement of cash ows was introduced in Chapter 1. This chapter begins by reviewing the purpose of the statement. Its usefulness to creditors and investors […]
978-0077862381 Chapter 12 Solution Manual Part 5
50 Minutes, Strong a. Stockholders’ equit y : Capital stock: Common stock, $1 par, 100,000 shares authorized, 20,000 shares issued, 16,000 shares outstandin g 20,000$ Stock dividend to be distributed ( 1 ) 1,600 PROBLEM 12.8B A DAMS CORPORATIO N […]
978-0077862381 Chapter 12 Solution Manual Part 4
a. Net sales 61,440,000$ Costs and ex p enses ( includin g income taxes on continuin g o p erations ) 5 3 , 980 , 000 Income from continuin g o p erations 7,460,000$ Discontinued o p erations: O […]
978-0077862381 Chapter 12 Solution Manual Part 3
b . Retained earnin g s, December 31, 2014 As ori g inall y re p orted 7,285,000$ Less: p rior p eriod ad j ustment 3 5 0 , 000 Subtotal 8,575,000$ Cash dividends (9 5 0 , 000) […]
978-0077862381 Chapter 12 Solution Manual Part 2
$590,000 88,000 $678,000 $460,000 Corrections of error in prior year’s financial statements (65,000) Retained earnings, beginning of year, as restated $395,000 250,000 $645,000 $20,000* 100,000** 120,000 $525,000 Common dividends Retained earnings, end of year $600,000 Retained earnings………………………………… 1,162,500 Dividends payable…………………………….. […]
978-0077862381 Chapter 12 Solution Manual Part 1
Brief Learning Exercises Objectives Skills B. Ex. 12.1 Extraordinary loss 12-1 Analysis B. Ex. 12.2 Extraordinary gain 12-1 Analysis B. Ex. 12.3 Discontinued operations 12-1 Analysis B. Ex. 12.4 Cash and stock dividends 12-4 Analysis B. Ex. 12.5 Statement of […]
978-0077862381 Chapter 12 Lecture Note
Chapter 12 – Income and Changes in Retained Earnings 12 INCOME AND CHANGES IN RETAINED EARNINGS Chapter Summary Chapter 12 continues the coverage of stockholders’ equity but shifts the focus from paid-in capital to retained earnings. The student is already […]
978-0077862381 Chapter 11 Solution Manual Part 5
30 Minutes, Strong Stockholders’ e q uit y : 6% p referred stock, $100 p ar, cumulative, authorized and issued and outstandin g 10,000 shares 1,000,000$ Common stock, $20 p ar, 150,000 shares authorized, 80,000 shares issued, of which 400 […]
978-0077862381 Chapter 11 Solution Manual Part 4
20 Minutes, Easy a. Stockholders’ equity authorized 2,000 shares, issued and out- 50,000$ standing 500 shares 1 , 120 , 000 Additional paid-in capital: Common stock Total paid-in capital 1,250,000$ 1 , 802 , 000 Retained earnings* T ota l […]
978-0077862381 Chapter 11 Solution Manual Part 3
20 Minutes, Easy a. Stockholders’ equity authorized 100,000 shares, issued and outstanding 1,000,000$ 10,000 shares 2 , 380 , 000 Total paid-in capital 3,550,000$ 555, Additional paid-in capital: Common stock 000 Retained earnings* T ota l stoc kh o ld […]
978-0077862381 Chapter 11 Solution Manual Part 2
$80,000 50,000 75,000 $205,000 B.Ex. 11.2 $100,000 250,000 B.Ex. 11.4 $225,000 120,000 $105,000 B.Ex. 11.5 $120,000 80,000 $40,000 $0.40 10,000 x $100 par x 8% x 1 year by the Board of Directors of the company. Total dividend declared Dividend […]
978-0077862381 Chapter 11 Lecture Note
Chapter 11 – Stockholders’ Equity: Paid-In Capital 11 STOCKHOLDERS’ EQUITY: PAID-IN CAPITAL Chapter Summary This, the first of two chapters on stockholders’ equity, treats topics concerned with the paid-in capital of a corporation. Consideration of issues relative to retained earnings […]
978-0077862381 Chapter 10 Solution Manual Part 4
25 Minutes, Medium JENCO a. Nov 1 Interest Expense 1,000 1,633 Cash 2,633 c. Reduction in Monthly Interest Unpaid Unpaid Payment Expense Balance Balance 100,000$ Nov. 1 2,633$ 1,000$ 1,633$ 98,367 Dec. 1 2,633 984 1,649 96,718 Jan. 1, 2016 […]
978-0077862381 Chapter 10 Solution Manual Part 3
25 Minutes, Medium Aug 6 Cash 12,000 Notes Pa y able 12,000 Se p t 16 18,000 Notes Pa y able 18,000 180 Cash 12,180 Nov 1 Cash 250,000 Notes Pa y able 250,000 Paid note and interest to Maple […]
978-0077862381 Chapter 10 Solution Manual Part 2
Ex. 10.1 Annual Unpaid Payment Balance Ex. 10.2 Trans- Net Current Owners’ action Revenue – Expenses= Income Assets = Liab. + Liab. + Equity a. NE I D NE I NE D b. NE I D DDNE D Net Cash […]
978-0077862381 Chapter 10 Solution Manual Part 1
Brief Learning Exercises Objectives B. Ex. 10.1 Cash effects of borrowing 10-2 B. Ex. 10.2 Effective interest rate 10-5 B. Ex. 10.3 Bonds issued at a discount 10-6 B. Ex. 10.4 Bonds issued a premium 10-6 Analysis B. Ex. 10.5 […]
978-0077862381 Chapter 10 Lecture Note
Chapter 10 – Liabilities 10 LIABILITIES Chapter Summary At the outset, the chapter distinguishes between current and long- term liabilities before addressing the accounting issues surrounding each category. Among current liabilities, notes payable and payroll related costs are analyzed in […]
978-0077862381 Chapter 1 Solution Manual Part 2
Ex. 1.7 c. g . d. Ex. 1.8 d. h. b. Bookkeeping Institute of Internal Auditors Securities and Exchange Commission and for evaluating and rewarding decision-making performance. The first is the most general and deals with management’s responsibility in the […]
978-0077862381 Chapter 1 Solution Manual Part 1
Brief Learning Exercises Topic Objectives Skills B. Ex. 1.1 Users of accounting information 1-1, 1-3, 1-5 Analysis B. Ex. 1.2 Components of internal control 1-2, 1-5 Analysis B. Ex. 1.3 Inexact or approximate measures 1-3, 1-4 Analysis, judgment B. Ex. […]
978-0077862381 Chapter 1 Lecture Note
Chapter 01 – Accounting: Information for Decision Making 1 ACCOUNTING: INFORMATION FOR DECISION MAKING Chapter Summary Our financial reporting system has changed greatly over the past 50 years and will continue to change. The financial world is experiencing unparalleled challenges, […]
978-0077861780 Chapter 9 Solution Manual
Chapter 9 2. The formula for free cash flow is as follows: FCF = EBIT(1 – Tax rate) + Depreciation – Capital expenditures – Working capital investments EBIT = Earnings before taxes + Interest expense = 200 + 50 = […]
978-0077861780 Chapter 9 Excel Problem
Chapter 9 Problem 15 Actual 2014 2015 2016 2017 2018 2019 Income statement Net sales 1,996$ 2,267$ 2,508$ 2,827$ 3,138$ 3,571$ Cost of sales 644 742 830 959 1,087 1,241 Gross income 1,352 1,525 1,678 1,868 2,051 2,330 Depreciation 492 […]
978-0077861780 Chapter 8 Solution Manual
Chapter 8 2. The numerator of Stock A’s beta = 22.9% (0.62 × 37%). The same quantity for Stock B = 32.0% (0.94 × 34%). Because all betas share the same denominator, the stock with the lower 4. If the […]
978-0077861780 Chapter 8 Excel Problem
Chapter 8 Problem 12 Suggested Answers a). Facts and Assumptions Initial cost ($000 omitted) 28,000$ Unit sales (000 0mitted) 400 Selling price per unit, this year 60$ Variable cost per unit, this year 42$ Life expectancy (years) 8 Salvage value […]
978-0077861780 Chapter 7 Solution Manual
Chapter 7 2. The compound annual growth rate is 14.6 percent. 4. The monthly interest on this loan is 0.417% (5%/12). After the first 12 months with no payments, the balance on the loan will increase to $81,486. To determine […]
978-0077861780 Chapter 7 Excel Problem
Chapter 7 Problem 12 a). Complete the spreadsheet below by estimating the project’s annual after tax cash flow. b). What is the investment’s net present value at a discount rate of 10 percent? c). What is the investment‘s internal rate […]
978-0077861780 Chapter 6 Solution Manual
Chapter 6 2. Operating leverage is the substitution of fixed- for variable-cost methods of production. With operating leverage, sales must increase to cover the higher fixed costs, but once covered, profits One would not expect to find both high operating […]
978-0077861780 Chapter 6 Excel Problem
Chapter 6 Problem 14 Dec09 Dec08 Dec07 Dec06 Dec05 Sales 30,052$ 28,374$ 26,858$ 25,477$ 24,455$ Cost of Goods Sold 24,826 24,023 22,480 21,448 20,391 Gross Profit 5,226 4,351 4,378 4,029 4,064 Depreciation 1,425 1,416 1,426 1,391 1,374 Operating Profit 3,801 […]
978-0077861780 Chapter 5 Solution Manual
Chapter 5 2. The fact that government bonds earned a higher rate of return than common stocks in one year is not evidence that investors are suddenly willing to settle for lower returns on stocks than bonds. It means that […]
978-0077861780 Chapter 4 Solution Manual
Chapter 4 2. Quoting from the chapter, “Good growth occurs when the company invests in activities offering returns in excess of cost, including the cost of capital employed. Good growth benefits 4. a. R&E Supplies, Inc., Sustainable Growth Calculations owners […]
978-0077861780 Chapter 4 Excel Problem
Chapter 4 Problem 10 2009 2010 2011 2012 2013 2014 Sales 477.84 491.62 706.52 792.01 876.52 1,088.46 Net income – 43.27 26.31 38.48 44.84 25.76 Total assets – 477.06 648.42 664.26 697.16 982.63 Equity – 346.32 426.01 465.85 432.91 553.27 […]
978-0077861780 Chapter 3 Solution Manual
Chapter 3 2. Historical analysis helps decide for which financial statement items a percent-of-sales forecast 4. a. If the collection period is 60 days, May cash receipts from March sales will equal half of March sales or $200,000. In addition […]
978-0077861780 Chapter 3 Excel Problem Part 2
Balance Sheet (in $ millions) ASSETS Cash & Equivalents 7.152$ 2% 12.821 14.103 15.513 17.064 18.771 Account Receivable 70.538 13% 83.335 91.668 100.835 110.919 122.011 Inventories 39.033 5% 32.052 35.257 38.783 42.661 46.927 Prepaid Expenses 9.339 no change 9.339 9.339 […]
978-0077861780 Chapter 3 Excel Problem Part 1
Chapter 3 Problem 7 Note: Manual calculation mode is on. You must press F9 key to calculate. Facts and Assumptions Year 2014 2015 2016 Net sales 20,613$ Growth rate in sales 25% 30% Cost of goods sold/net sales 86% 86% […]
978-0077861780 Chapter 2 Solution Manual
Chapter 2 2. a. Price-to-earnings ratios are highly dependent on future growth expectations. I would thus expect high-growth Google to have the higher ratio than low-growth Union Pacific. b. The financial institution should have the higher debt-to-equity ratio because the […]
978-0077861780 Chapter 2 Excel Problem
Chapter 2 Problem 13 a. Use the spreadsheet to calculate as many of the company’s Profitability, Turnover-Control, and Leverage and Liquidity ratios as you can for these years (see Table 2.5 in text for a list of possible ratios). b. […]
978-0077861780 Chapter 1 Solution Manual
Chapter 1 2. Management is either dumb or thinks its board is. Earning $100 million on a $4 billion equity 4. a. Cash rises $500,000; plant and equipment falls $300,000; equity rises $200,000. b. Net plant and equipment rises $80 […]
978-0077861780 Chapter 1 Excel Problem
Chapter 1 Problem 14 a. Prepare a sources and uses statement for Whistler Corp. for fiscal year 2014. b. Prepare a cash flow statement for Whistler Corp. for fiscal year 2014. Whistler Corporation Financial Statements Balance Sheet: 2013 2014 Current […]
978-0077733773 Chapter 9 Solution Manual Part 9
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-50 (Continued-1) $4.000 $27,435 $27,389 $4.250 $28,087 $27,944 $4.500 $28,739 $28,500 $4.750 $29,391 $29,056 $5.000 $30,043 $29,611 Based on the above analysis and graph, we see that for these two 4. […]
978-0077733773 Chapter 9 Solution Manual Part 8
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-48 (Continued-4) The above data table provides the results of a sensitivity analysis. Specifically, we are looking at the sensitivity of the breakeven point to the assumption regarding sales mix for […]
978-0077733773 Chapter 9 Solution Manual Part 7
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-46 (Continued-1) Total Relevant Cost, Current Plan = Total Relevant Cost, Proposed Plan ($43.50 × Q) + $6,000,000 = ($58.75 × Q) + $3,000,000 ($58.75 − $43.50)/unit × Q = $6,000,000 […]
978-0077733773 Chapter 9 Solution Manual Part 6
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-44 CVP Analysis; Uncertainty/Sensitivity Analysis (60-75 min) 1. To break even, during the first year of operations, 3,649 clients (rounded up) must visit the law office being considered by Don Carson […]
978-0077733773 Chapter 9 Solution Manual Part 5
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-40 (Continued-1) Step Two: Run Goal Seek Step Three: Results Thus, at 1,280 tests per year, the total cost under each of the two decision alternatives would be the same: $256,000. […]
978-0077733773 Chapter 9 Solution Manual Part 4
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-37 (Continued-1) 4. BE units = F ÷ contribution margin per unit = ($500,000 + $160,000) ÷ ($80.00 − $41.50)/unit = $660,000 ÷ $38.50/unit = 17,143 units πB= Sales − variable […]
978-0077733773 Chapter 9 Solution Manual Part 3
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-32 Further Analysis–Degree of Operating Leverage (DOL) (40-45 min) 1. Demonstrating that DOL represents the % change in operating income DOL = CM ÷ Operating Income (OI), for any given sales […]
978-0077733773 Chapter 9 Solution Manual Part 2
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-24 Cost Planning: The Cost of an MBA; Time Value of Money (20 minutes) Using the present value factor (4.212) for an annuity for five years at 6% shows that the […]
978-0077733773 Chapter 9 Solution Manual Part 1
Chapter 09 – Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis CHAPTER 9 SHORT-TERM PROFIT PLANNING: COST-VOLUME-PROFIT (CVP) ANALYSIS QUESTIONS 9-1 The underlying relationship depicted in a cost-volume-profit (CVP) analysis is that costs, revenues, and operating profits (Y) all change in a […]