Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
FALSM. (3-5)

FALSM. (3-5)

Ratings: (0)|Views: 1 |Likes:
Published by tomy79900
1.Cilica Corporation is a supplier to the pulp and paper industry. Selected financial information about Cilca is listed below:

• Purchased real estate for $440,000 in cash. The cash was borrowed from a bank.
• Sold investments for $400,000.
• Paid dividends of $480,000.
• Issued shares of common stock for $200,000.
• Purchased machinery and equipment for $100,000 cash.
• Paid $360,000 on a bank loan.
• Reduced accounts receivable by $80,000.
• Increased accounts payable $160,000.

Use the above information to calculate Cilca’s:
a. cash used or provided by investing activities
b. cash used or provided by financing activities

2.
2. Oli Corporation manufactures food processing equipment. Use Olive Corporation’s two most recent balance sheets and most recent income statement to prepare a statement of cash flows for 2010. The company paid dividends of $6,250 during 2010.

Olive Corporation
Balance Sheet
As of December 31, 2010 2009
Assets:
Cash and cash equivalents $41,900 $25,000
Accounts Receivable 24,000 6,250
Inventory 30,000 36,000
Current Assets 95,900 67,250

Equipment 42,000 38,500
Less: Accumulated depreciation -14,000 -7,000
Land 25,000 10,000

Total assets $148,900 $108,750

Liabilities
Accounts Payable $17,500 $22,500
Accrued Salaries Payable 5,500 8,000
Rent Expense Payable 2,200 1,000
Income Tax Payable 6,900 4,000
Current Liabilities 32,100 35,500

Long-term note payable 50,000 30,000
Total Liabilities 82,100 65,500

Stockholders’ Equity:
Common stock 42,000 30,000
Retained earnings 24,800 13,250

Total liabilities and stockholders’ equity $148,900 $108,750

Olive Corporation
Income Statement
For the year ended December 31, 2010

Revenues $147,000
Cost of goods sold -84,000
Gross Profit $63,000

Operating Expenses
Depreciation expense -7,000
Salary expense -14,600
Insurance Expense -2,500
Rent Expense -10,000
Interest Expense -4,200
Total Operating Expenses -38,300

Income from Operations 24,700
Income Tax Expense -6,900

Net income $17,80

J. Jill is a women’s clothing retailer. The company started as a mail order company and has expanded into mall department stores. The company now receives approximately half of its revenues from mail order and half from retail outlets. Over the time period 2010 to 2012, sales increased approximately 25%.
Discuss the relationship between net income, working capital from operations, and cash flow from operations, and between cash flows from operating, investing, and financing activities over the three-year period.

CASH FLOW STATEMENT (in thousands)

Cash from operations 12/25/2012 12/27/2011 12/28/2010
Net income 8,706 7,025 18,434
Depreciation & amortization 18,663 16,131 12,672
Net increase (decrease) in assets &liab. 6,696 26,659 10,623
Other adjustments, net 1,396 924 3,996
Net cash provided by (used in) operations 35,461 50,739 45,725

Cash from investments
(Increase) decrease in property & plant -28,784 -34,265 -34,734
Other cash inflow (outflow) -35,434 -1,143 -2,454
Net cash provided by (used in) investing -64,218 -35,408 -37,188

Cash from financing
Issuances (purchases) of equity shares 3,142 870 7,800
Increase (decrease) in borrowings -1,706 -1,648 -1,755
Net cash provided by (used in) financing 1,436 -778 6,045
- - -
Net change cash & cash equivalents -27,321 14,553 14,582
Cash and cash equivalents at start of year 59,287 44,734 30,152
Cash and cash equivalents at year end 31,966 59,287 44,734



6. Linda’s Clothing is a retailer of contemporary women’s clothing. Selected financial information for Linda’s appears below:

2011 2010 2009 2008
Net Income $ 56,759 $ 31,150 $ 15,375 $14,750
Total Assets at year-end $381,500 $246,250 $145,490 $71,268
Weighted Average number of shares
Outstanding 84,215 80,546 77,965 75,888
1.Cilica Corporation is a supplier to the pulp and paper industry. Selected financial information about Cilca is listed below:

• Purchased real estate for $440,000 in cash. The cash was borrowed from a bank.
• Sold investments for $400,000.
• Paid dividends of $480,000.
• Issued shares of common stock for $200,000.
• Purchased machinery and equipment for $100,000 cash.
• Paid $360,000 on a bank loan.
• Reduced accounts receivable by $80,000.
• Increased accounts payable $160,000.

Use the above information to calculate Cilca’s:
a. cash used or provided by investing activities
b. cash used or provided by financing activities

2.
2. Oli Corporation manufactures food processing equipment. Use Olive Corporation’s two most recent balance sheets and most recent income statement to prepare a statement of cash flows for 2010. The company paid dividends of $6,250 during 2010.

Olive Corporation
Balance Sheet
As of December 31, 2010 2009
Assets:
Cash and cash equivalents $41,900 $25,000
Accounts Receivable 24,000 6,250
Inventory 30,000 36,000
Current Assets 95,900 67,250

Equipment 42,000 38,500
Less: Accumulated depreciation -14,000 -7,000
Land 25,000 10,000

Total assets $148,900 $108,750

Liabilities
Accounts Payable $17,500 $22,500
Accrued Salaries Payable 5,500 8,000
Rent Expense Payable 2,200 1,000
Income Tax Payable 6,900 4,000
Current Liabilities 32,100 35,500

Long-term note payable 50,000 30,000
Total Liabilities 82,100 65,500

Stockholders’ Equity:
Common stock 42,000 30,000
Retained earnings 24,800 13,250

Total liabilities and stockholders’ equity $148,900 $108,750

Olive Corporation
Income Statement
For the year ended December 31, 2010

Revenues $147,000
Cost of goods sold -84,000
Gross Profit $63,000

Operating Expenses
Depreciation expense -7,000
Salary expense -14,600
Insurance Expense -2,500
Rent Expense -10,000
Interest Expense -4,200
Total Operating Expenses -38,300

Income from Operations 24,700
Income Tax Expense -6,900

Net income $17,80

J. Jill is a women’s clothing retailer. The company started as a mail order company and has expanded into mall department stores. The company now receives approximately half of its revenues from mail order and half from retail outlets. Over the time period 2010 to 2012, sales increased approximately 25%.
Discuss the relationship between net income, working capital from operations, and cash flow from operations, and between cash flows from operating, investing, and financing activities over the three-year period.

CASH FLOW STATEMENT (in thousands)

Cash from operations 12/25/2012 12/27/2011 12/28/2010
Net income 8,706 7,025 18,434
Depreciation & amortization 18,663 16,131 12,672
Net increase (decrease) in assets &liab. 6,696 26,659 10,623
Other adjustments, net 1,396 924 3,996
Net cash provided by (used in) operations 35,461 50,739 45,725

Cash from investments
(Increase) decrease in property & plant -28,784 -34,265 -34,734
Other cash inflow (outflow) -35,434 -1,143 -2,454
Net cash provided by (used in) investing -64,218 -35,408 -37,188

Cash from financing
Issuances (purchases) of equity shares 3,142 870 7,800
Increase (decrease) in borrowings -1,706 -1,648 -1,755
Net cash provided by (used in) financing 1,436 -778 6,045
- - -
Net change cash & cash equivalents -27,321 14,553 14,582
Cash and cash equivalents at start of year 59,287 44,734 30,152
Cash and cash equivalents at year end 31,966 59,287 44,734



6. Linda’s Clothing is a retailer of contemporary women’s clothing. Selected financial information for Linda’s appears below:

2011 2010 2009 2008
Net Income $ 56,759 $ 31,150 $ 15,375 $14,750
Total Assets at year-end $381,500 $246,250 $145,490 $71,268
Weighted Average number of shares
Outstanding 84,215 80,546 77,965 75,888

More info:

Categories:Types, School Work
Published by: tomy79900 on Aug 04, 2014
Copyright:Traditional Copyright: All rights reserved

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

08/04/2014

pdf

text

original

 
 1.
1.Cilca Corporation is a supplier to the pulp and paper industry. Selected financial information about Cilca is listed below:
 Purchased real estate for $440,000 in cash. The cash was borrowed from a bank.
 Sold investments for $400,000.
 Paid dividends of $480,000.
 Issued shares of common stock for $200,000.
 Purchased machinery and equipment for $100,000 cash.
 Paid $360,000 on a bank loan.
 Reduced accounts receivable by $80,000.
 Increased accounts payable $160,000.
Use the above information to calculate Cilca’s:
 a. cash used or provided by investing activities b. cash used or provided by financing activities
2.
Corporation manufactures food processing equipment. Use Olive Corporation’s two
most recent balance sheets and most recent income statement to prepare a statement of cash flows for 2010. The company paid dividends of $6,250 during 2010.
Olive Corporation Balance Sheet  As of December 31, 2010 2009  Assets:
Cash and cash equivalents $41,900 $25,000 Accounts Receivable 24,000 6,250 Inventory 30,000 36,000 Current Assets 95,900 67,250 Equipment 42,000 38,500 Less: Accumulated depreciation -14,000 -7,000 Land 25,000 10,000
Total assets $148,900 $108,750 Liabilities
Accounts Payable $17,500 $22,500 Accrued Salaries Payable 5,500 8,000 Rent Expense Payable 2,200 1,000 Income Tax Payable 6,900 4,000 Current Liabilities 32,100 35,500 Long-term note payable 50,000 30,000 Total Liabilities 82,100 65,500
Stockholders’ Equity:
 
 
Common stock 42,000 30,000 Retained earnings 24,800 13,250
Total liabilities and stockholders’
equity $148,900 $108,750 Olive Corporation Income Statement For the year ended December 31, 2010
Revenues $147,000 Cost of goods sold -84,000 Gross Profit $63,000 Operating Expenses Depreciation expense -7,000 Salary expense -14,600 Insurance Expense -2,500 Rent Expense -10,000 Interest Expense -4,200 Total Operating Expenses -38,300 Income from Operations 24,700 Income Tax Expense -6,900 Net income $17,800
3.
J. Jill is a women’s clothing retailer. The company started as a mail order company and has
expanded into mall department stores. The company now receives approximately half of its revenues from mail order and half from retail outlets. Over the time period 2010 to 2012, sales increased approximately 25%. Discuss the relationship between net income, working capital from operations, and cash flow from operations, and between cash flows from operating, investing, and financing activities over the three-year period.
CASH FLOW STATEMENT (in thousands) Cash from operations 12/25/2012 12/27/2011 12/28/2010
Net income 8,706 7,025 18,434 Depreciation & amortization 18,663 16,131 12,672 Net increase (decrease) in assets & liab. 6,696 26,659 10,623 Other adjustments, net 1,396 924 3,996 Net cash provided by (used in) operations
35,461 50,739 45,725 Cash from investments
(Increase) decrease in property & plant -28,784 -34,265 -34,734 Other cash inflow (outflow) -35,434 -1,143 -2,454
 
Net cash provided by (used in) investing
-64,218 -35,408 -37,188 Cash from financing
Issuances (purchases) of equity shares 3,142 870 7,800 Increase (decrease) in borrowings -1,706 -1,648 -1,755 Net cash provided by (used in) financing
1,436 -778 6,045
- - - Net change cash & cash equivalents -27,321 14,553 14,582 Cash and cash equivalents at start of year 59,287 44,734 30,152 Cash and cash equivalents at year end 31,966 59,287 44,734
a’s Clothing is a retailer of contemporary women’s clothing. Selected financial information for Linda’s
appears below:
2011 2010 2009 2008
Net Income $ 56,759 $ 31,150 $ 15,375 $14,750 Total Assets at year-end $381,500 $246,250 $145,490 $71,268 Weighted Average number of shares Outstanding 84,215 80,546 77,965 75,888 Total Liabilities at year-end 205,967 119,657 60,522 17,623 Common Stockholders' Equity at year-end $175,533 $126,593 $ 84,968 $53,645 Interest Expense 165 195 258 368 Required: a. Compute the rate of return on assets for the years 2009-
2011. Linda’s has an effective tax
rate of 35%. b. Compute the rate of return on common
shareholders’ equity for the years 2009
-2011. c. Compute basic earnings per share for the years 2009-2011. d. Interpret the changes in ROA versus ROCE and EPS over the three-year period.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->