Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 5, Problem 17PC
a.
To determine
Compute ROCE for 2012.
b.
To determine
Allocate the amount of
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Consider the following potential events that might have taken place at Global Conglomerateon December 30, 2018. For each one, indicate which line items in Global’s balance sheet wouldbe affected and by how much. Also indicate the change to Global’s book value of equity. (In allcases, ignore any tax consequences for simplicity.)a. Global used $20 million of its available cash to repay $20 million of its long-term debt.b. A warehouse fire destroyed $5 million worth of uninsured inventory.c. Global used $5 million in cash and $5 million in new long-term debt to purchase a $10 million building.d. A large customer owing $3 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.e. Global’s engineers discover a new manufacturing process that will cut the cost of its flagshipproduct by over 50%.f. A key competitor announces a radical new pricing policy that will drastically undercutGlobal’s prices.
The 2021 and 2020 comparative balance sheets and 2021 income statement of Outdoor Supply Corp. follow:
(Click the icon to view the income statement.)
(Click the icon to view the comparative balance sheet.)
Outdoor Supply had no noncash investing and financing transactions during 2021. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.
Read the requirements.
Requirement 1. Prepare the company's 2021 statement of cash flows using the direct method.
Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)
Outdoor Supply Corp.
Statement of Cash Flows (Direct Method)
Year Ended December 31, 2021
Cash flows from operating activities:
Receipts:
Payments:
Total cash payments
Net cash provided by (used for) operating activities
Cash flows…
During 2025, Sheridan Company entered into the following transactions.
1.
2.
3.
(1)
Your answer is partially correct.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease
in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset,
Liability or Equity item that was reduced.)
(2)
(3)
Purchased equipment for $313,650 cash.
Issued common stock to investors for $136,360 cash.
Purchased inventory of $70,990 on account.
$
Cash
313650
eTextbook and Media
136360
Assets
Inventory
Save for Later Last saved 11 days ago.
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70990
Equipment
313650
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Chapter 5 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - A firm has experienced an increasing current ratio...Ch. 5 - A firm has experienced a decrease in its current...Ch. 5 - Prob. 5QECh. 5 - A firm had the following values for the four debt...Ch. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QE
Ch. 5 - Market equity beta measures the covariability of a...Ch. 5 - Altmans bankruptcy risk model utilizes the values...Ch. 5 - Calculating and Interpreting Risk Ratios. Refer to...Ch. 5 - Refer to the financial state-ment data for...Ch. 5 - Refer to the profitability ratios of Coca-Cola in...Ch. 5 - Delta Air Lines, Inc., is one of the largest...Ch. 5 - Prob. 17PCCh. 5 - Prob. 18PCCh. 5 - Prob. 19PCCh. 5 - Prob. 20PCCh. 5 - Prob. 21PCCh. 5 - Prob. 22PCCh. 5 - Compute the values of each of the ratios in...
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