accounting-Problem 14-8 1. and 2.

    Problem 14-81. and 2.Calculation of depreciation to add back to Net Income:Accumulated Depreciation, beginning balanceAccumulated Depreciation, ending balanceDebits to Accumulated DepreciationCredits to Accumulated Depreciation$70$85$10$25Correct!Correct!Correct!Correct!Changes in noncash balance sheet accounts that impact net income:Increase inDecrease inAccountAccountBalanceBalance(80)35(2)Current AssetsAccounts receivableInventoryPrepaid expensesCurrent LiabilitiesAccounts PayableAccrued liabilitiesIncome taxes payable75Correct!Correct!Correct!Correct!(10)8Correct!Correct!Changes in noncash balance sheet accounts that impact investing and financing:Noncurrent AssetsProperty, plant, and equipmentLong-term investmentsIncrease inDecrease inAccountAccountBalanceBalance(80)7Liabilities and Stockholders’ equityBonds payableCommon stock25Property, Plant and EquipmentProperty, Plant and Equipment, beginning balanceProperty, Plant and Equipment, ending balanceDebits to Property, Plant and EquipmentCredits to Property, Plant and EquipmentRetained EarningsRetained Earnings, beginning balanceRetained Earnings, ending balanceDebits to Retained EarningsCredits to Retained EarningsEATON COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2011Operating activities:Net incomeAdjustments needed to convert net income to cash basis:Net cash provided by operating activitiesInvesting activities:Net cash used for investing activitiesFinancing activities:Net cash used in financing activitiesNet decrease in cashCash balance, January 1, 2011Cash balance, December 31, 2011Correct!Correct!Correct!(40)Correct!$420$500Correct!Correct!$92$132Correct!Correct!Given Data P14-8:EATON COMPANYComparative Balance SheetDecember 31, 2011, and 201020112010AssetsCashAccounts receivableInventoryPrepaid expensesTotal current assetsProperty, Plant, and equipmentLess accumulated depreciationNet property, plant, and equipmentLong-term investmentsTotal assets$431016084825008541531$928$1123019564424207035038$830Liabilities and Stockholders’ EquityAccounts payableAccrued liabilitiesIncome taxes payableTotal current liabilitiesBonds payableTotal liabilitiesCommon stockRetained earningsTotal stockholders’ equityTotal liabilities and stockholders’ equity$3007071441195636160132292$928$225806336817053820092292$830EATON COMPANYIncome StatementFor the Year Ended December 31, 2011SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of investmentsLoss on sale of equipmentIncome before taxesIncome taxesNet incomeEquipment costEquipment selling priceAccumulated depreciation of equipmentLong-term investment purchaseLong-term investment salePaid cash dividendStock repurchase$75045030022377$52$30$18$10$7$12?$4038024$56Student Name:Class:Problem 14-141. and 2.Calculation of depreciation to add back to Net Income:Accumulated Depreciation, beginning balanceAccumulated Depreciation, ending balanceDebits to Accumulated DepreciationCredits to Accumulated Depreciation$190,000$210,000$40,000Correct!Correct!Correct!Changes in noncash balance sheet accounts that impact net income:Increase inAccountBalanceCurrent AssetsAccounts receivableInventoryPrepaid expensesDecrease inAccountBalance10,000(54,000)Correct!Correct!8,000(55,000)(7,000)Current LiabilitiesAccounts PayableAccrued liabilitiesIncome taxes payableCorrect!Correct!Correct!3,000Correct!Changes in noncash balance sheet accounts that impact investing and financing:Noncurrent AssetsProperty, plant, and equipmentLong-term investmentsIncrease inDecrease inAccountAccountBalanceBalance(110,000)30,000Liabilities and Stockholders’ equityBonds payableCommon stock100,000Property, Plant and EquipmentProperty, Plant and Equipment, beginning balanceProperty, Plant and Equipment, ending balanceDebits to Property, Plant and EquipmentCredits to Property, Plant and EquipmentRetained EarningsRetained Earnings, beginning balanceRetained Earnings, ending balanceDebits to Retained EarningsCredits to Retained EarningsALLIED COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2011Operating activities:Net incomeAdjustments needed to convert net income to a cash basis:Net cash provided by operating activitiesInvesting activities:Net cash used for investing activitiesFinancing activities:Net cash provided by financing activitiesNet decrease in cashCash balance, Beginning of yearCash balance, End of year3. Free cash flow computationNet cash provided by operating activitiesCapital expendituresDividendsFree cash flowCorrect!Correct!Correct!(5,000)$750,000$860,000Correct!Correct!Correct!Given Data P14-14:Minimum cash balance$20,000ALLIED COMPANYComparative Balance SheetDecember 31, 2011, and 201020112010AssetsCurrent assets:CashAccounts receivableInventoryPrepaid expensesTotal current assetsLong-term investmentsPlant and equipmentLess accumulated depreciationNet plant and equipmentTotal assets$15,000200,000250,0007,000472,00090,000860,000210,000650,000$1,212,000Liabilities and Stockholders’ EquityCurrent liabilities:Accounts payable$175,000Accrued liabilities$8,000Income taxes payable42,000Total current liabilities225,000Bonds payable200,000Total liabilities425,000Stockholders’ equity:Common stock595,000Retained earnings192,000Total stockholders’ equity787,000Total liabilities and stockholders’ equity$1,212,000$33,000210,000196,00015,000454,000120,000750,000190,000560,000$1,134,000$230,000$15,00039,000284,000100,000384,000600,000150,000750,000$1,134,000ALLIED COMPANYIncome StatementFor the Year Ended December 31, 2011SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of investmentsLoss on sales of equipmentIncome before taxesIncome taxesNet income$800,000500,000300,000214,00086,000$20,0006,000Additional information:Long-term investment costLong-term investment saleEquipment costEquipment accumulated depreciationEquipment selling priceDividends declared and paidStock was repurchased for cash$30,000$50,000$90,000$40,000$44,000??14,000100,00030,000$70,000Student Name:Class:Problem 14A-5EATON COMPANYAdjusted Income StatementFor the Year Ended December 31, 2011SalesAdjustments to a cash basis:Cost of goods soldAdjustments to a cash basis:Selling and administrative expensesAdjustments to a cash basis:Income taxesAdjustments to a cash basis:Net cash provided by operating activitiesEATON COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2011Operating activities:Cash received from customersLess cash disbursements for:Total cash disbursementsNet cash provided by operating activitiesInvesting activities:Net cash used in investing activitiesFinancing activities:Net cash used in financing activitiesNet decrease in cashCash balance, beginningCash balance, endingGiven Data P14A-5:EATON COMPANYComparative Balance SheetDecember 31, 2011, and 201020112010AssetsCashAccounts receivableInventoryPrepaid expensesTotal current assetsProperty, Plant, and equipmentLess accumulated depreciationNet property, plant, and equipmentLong-term investmentsTotal assets$431016084825008541531$928$1123019564424207035038$830Liabilities and Stockholders’ EquityAccounts payableAccrued liabilitiesIncome taxes payableTotal current liabilitiesBonds payableTotal liabilitiesCommon stockRetained earningsTotal stockholders’ equityTotal liabilities and stockholders’ equity$3007071441195636160132292$928$225806336817053820092292$830EATON COMPANYIncome StatementFor the Year Ended December 31, 2011SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of investmentsLoss on sale of equipmentIncome before taxesIncome taxesNet incomeEquipment costEquipment selling priceAccumulated depreciation of equipmentLong-term investment purchaseLong-term investment salePaid cash dividendStock repurchase$75045030022377$52$30$18$10$7$12?$4038024$56

    Order for this paper or request for a similar assignment by clicking order now below

    Order Now

    Do NOT follow this link or you will be banned from the site!