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ACC 291 Week 8 Exercises E13-8 & E14-3 - Taguchi Company and CONARD CORPORATION

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Question;Instructions;(a) Prepare a statement of cash;flows for 2011 using the indirect method.;(b) Compute free cash flow.;E13-8Here are comparative;balance sheets for Taguchi Company.;SCULLY CORPORATION;Comparative Balance Sheets;December 31;2011 2010;Cash $ 14,300 $ 10,700;Accounts receivable 21,200 23,400;Land 20,000 26,000;Building 70,000 70,000;Accumulated depreciation (15,000) (10,000);Total $110,500 $120,100;Accounts payable $12,370 $31,100;Common stock 75,000 69,000;Retained earnings 23,130 20,000;Total $110,500 $120,100;TAGUCHI COMPANY;Comparative Balance Sheets;December 31;Assets 2011 2010;Cash $ 73,000 $ 22,000;Accounts receivable 85,000 76,000;Inventories 170,000 189,000;Land 75,000 100,000;Equipment 260,000 200,000;Accumulated depreciation (66,000) (32,000);Total $597,000 $555,000;Liabilities and Stockholders? Equity;Accounts payable $ 39,000 $ 47,000;Bonds payable 150,000 200,000;Common stock ($1 par) 216,000 174,000;Retained earnings 192,000 134,000;Total $597,000 $555,000;Additional information;1. Net income for 2011 was $103,000.;2. Cash dividends of $45,000 were declared and paid.;3. Bonds payable amounting to $50,000 were redeemed for cash;$50,000.;4. Common stock was issued for $42,000 cash.;5. No equipment was sold during 2011, but land was sold at;cost.;Instructions;Prepare a schedule showing a;vertical analysis for 2012 and 2011.;E14-3The comparative;condensed balance sheets of Conard Corporation are presented below.;CONARD CORPORATION;Comparative Condensed Balance Sheets;December 31;2012 2011;Assets;Current assets $ 74,000 $ 80,000;Property, plant, and equipment (net) 99,000 90,000;Intangibles 27,000 40,000;Total assets $200,000 $210,000;Liabilities and stockholders? equity;Current liabilities $ 42,000 $ 48,000;Long-term liabilities 143,000 150,000;Stockholders? equity 15,000 12,000;Total liabilities and stockholders? equity $200,000 $210,000;Instructions;(a) Prepare a horizontal analysis of the balance sheet data;for Conard Corporation using 2011;as a base.;(b) Prepare a vertical analysis of the balance sheet data;for Conard Corporation in columnar;form for 2012.

 

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