Xacc/Week 8 Erercises

XACC/291 principles of Accounting 11

Mary E. Lambert

August 28, 2015

Week 8

Exercise E13-8

Taguchi Company Statement of Cash Flows(Indirect method)

December 31, 2011

Operating Activities (Cash Flows)

Net Income……….103,000

Operating Cash Activities (Adjustments to receive Net Income to Net Cash)

Accounts Receivable (Increase)………9,000

Inventory(Decrease)………..19,000

Accounts Payable (Decrease) …..8,000

Totals (Decrease)………18,000

Operating Activities (Net Cash)…………..121,000

Investing Activities (Cash Flows)

Land(Sell)…………..25,000

Equipment(Purchased)…………60,000

Investing Activities (Net Cash) …………….85,000

Financing Activities (Cash Flows)

Bonds(Redemption)………..50,000

Common Stock (Sale)……………42,000

Dividends (payments)………..45,000

Financing Activities (Net Cash) ……………37,000

Cash (Net Increase)…………51,000

Beginning Period (Cash)………..22,000

Ending Period (Cash)………..73,000

Investing and Financing Activities (Non-Cash)……0

Exercise E14-3

Horizontal Analysis:

Assets: Amount Percent

Current Assets: $6,000 7.5%

Plant Assets: $9,000 10%

Intangibles: $13,000 32.5%

Total Assets: $10,000 4.8%

Liabilities and Stockholders’ Equity:

Current Liabilities: $6,000 12.5%

Long-term Liabilities: $7,000 4.7%

Stockholders’ Equity: $3,000 25%

Total Liabilities and Stockholders’ Equity $10,000 4.8%

Vertical Analysis: Amount Percent

Current Assets: $74,000 37%

Plant Assets: $99,000 49.5%

Intangibles: $27,000 13.5%

Total Assets:...