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Question;A comparative balance sheet for the Beneteau Corporation is presented belowBENETEAU CORPORATIONComparative Balance Sheet2014 2013AssetsCash \$ 37,000 \$ 31,000Accounts receivable (net) 80,000 60,000Prepaid insurance 22,000 17,000Land 18,000 40,000Equipment 70,000 60,000Accumulated depreciation (20,000) (13,000)Total Assets \$207,000 \$195,000Liabilities and Stockholders' EquityAccounts payable \$ 12,000 \$ 6,000Bonds payable 27,000 19,000Common stock 140,000 115,000Retained earnings 28,000 55,000Total liabilities and stockholders' equity \$207,000 \$195,000Additional information:1. Net loss for 2014 is \$12,000. Net sales for 2014 are \$250,000.2. Cash dividends of \$15,000 were declared and paid in 2014.3. Land was sold for cash at a loss of \$2,000. This was the only land transaction during theyear.4. Equipment with a cost of \$15,000 and accumulated depreciation of \$10,000 was sold for\$5,000 cash.5. \$12,000 of bonds were retired during the year at carrying (book) value.6. Equipment was acquired for common stock. The fair value of the stock at the time of theexchange was \$25,000.Instructions1. Prepare a statement of cash flows for the year ended 2014 using the indirect method.2. Compute the following cash based ratios:a. Current cash debt coverageb. Cash debt coverageFINANCIAL ACCOUNTING II ? WINTER 2014 ? FINAL EXAM5Problem 2 (20 Points)The following items were taken from the financial statements of Kramer Manufacturing, Inc., over a three-yearperiod:Item 2015 2014 2013Net Sales \$226,000 \$212,000 \$200,000Cost of Goods Sold 150,000 140,000 125,000Gross Profit \$ 76,000 \$ 72,000 \$ 75,000InstructionsUsing horizontal analysis and 2013 as the base year, compute the trend percentages for netsales, cost of goods sold, and gross profit. Explain whether the trends are favorable orunfavorable for each item.Problem 3 (20 Points)The following items were taken from the financial statements of Mint, Inc., over a three-yearperiod:Item 2015 2014 2013Net Sales \$355,000 \$336,000 \$300,000Cost of Goods Sold 214,000 206,000 186,000Gross Profit \$141,000 \$130,000 \$114,000InstructionsCompute the following for each of the above time periods.a. The amount and percentage change from 2013 to 2014.b. The amount and percentage change from 2014 to 2015.Problem 4 (20 Points)Using these data from the comparative balance sheet of Sunta Fe Spice Company, performhorizontal analysis.December 31, 2014 December 31, 2013Accounts receivable \$ 375,000 \$ 300,000Inventory 780,000 600,000Total assets 3,220,000 2,800,000

Paper#43242 | Written in 18-Jul-2015

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