Prepare a statement of cash flows using the indirect method

Question

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