{"id":132268,"date":"2023-08-20T11:01:25","date_gmt":"2023-08-20T11:01:25","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/acc300-p2-6a-and-p13-2a-accounting-homework-help\/"},"modified":"2023-08-20T11:01:25","modified_gmt":"2023-08-20T11:01:25","slug":"acc300-p2-6a-and-p13-2a-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/acc300-p2-6a-and-p13-2a-accounting-homework-help\/","title":{"rendered":"Acc300 p2-6a and p13-2a | Accounting homework help"},"content":{"rendered":"
\n

P2-6A <\/strong>Condensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page.<\/p>\n

SIEVERT CORPORATION<\/strong><\/p>\n

Balance Sheets<\/strong><\/p>\n

\u00a0<\/p>\n

December 31<\/strong><\/p>\n

\u00a0<\/p>\n

Assets 2012 2011<\/strong><\/p>\n

\u00a0<\/p>\n

Cash $ 28,000 $ 20,000<\/p>\n

\u00a0<\/p>\n

Receivables (net) 70,000 62,000<\/p>\n

\u00a0<\/p>\n

Other current assets 90,000 73,000<\/p>\n

\u00a0<\/p>\n

Long-term investments 62,000 60,000<\/p>\n

\u00a0<\/p>\n

Plant and equipment (net) 510,000 470,000<\/p>\n

\u00a0<\/p>\n

Total assets $760,000 $685,000<\/p>\n

\u00a0<\/p>\n

Liabilities and Stockholders\u2019 Equity<\/strong><\/p>\n

\u00a0<\/p>\n

Current liabilities $ 75,000 $ 70,000<\/p>\n

\u00a0<\/p>\n

Long-term debt 80,000 90,000<\/p>\n

\u00a0<\/p>\n

Common stock 330,000 300,000<\/p>\n

\u00a0<\/p>\n

Retained earnings 275,000 225,000<\/p>\n

\u00a0<\/p>\n

Total liabilities and stockholders\u2019 equity $760,000 $685,000<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

SIEVERT CORPORATION<\/strong><\/p>\n

\u00a0<\/p>\n

Income Statements<\/strong><\/p>\n

\u00a0<\/p>\n

For the Years Ended December 31<\/strong><\/p>\n

\u00a0<\/p>\n

2012 2011<\/strong><\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

Sales $750,000 $680,000<\/p>\n

\u00a0<\/p>\n

Cost of goods sold 440,000 400,000<\/p>\n

\u00a0<\/p>\n

Operating expenses (including income taxes) 240,000 220,000<\/p>\n

\u00a0<\/p>\n

Net income $ 70,000 $ 60,000<\/p>\n

\u00a0<\/p>\n

Additional information:<\/p>\n

\u00a0<\/p>\n

Cash from operating activities $82,000 $56,000<\/p>\n

\u00a0<\/p>\n

Cash used for capital expenditures $45,000 $38,000<\/p>\n

\u00a0<\/p>\n

Dividends paid $20,000 $15,000<\/p>\n

\u00a0<\/p>\n

Average number of shares outstanding 33,000 30,000<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

Instructions<\/em><\/strong><\/p>\n

\u00a0<\/p>\n

Compute these values and ratios for 2011 and 2012.<\/p>\n

\u00a0<\/p>\n

(a) Earnings per share.<\/p>\n

\u00a0<\/p>\n

(b) Working capital.<\/p>\n

\u00a0<\/p>\n

(c) Current ratio.<\/p>\n

\u00a0<\/p>\n

(d) Debt to total assets ratio.<\/p>\n

\u00a0<\/p>\n

(e) Free cash flow.<\/p>\n

\u00a0<\/p>\n

(f ) Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2011 to 2012 of Sievert Corporation.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

P13-2A <\/strong>The comparative statements of Lucille Company are presented here.<\/p>\n

\u00a0<\/p>\n

LUCILLE COMPANY<\/strong><\/p>\n

\u00a0<\/p>\n

Income Statements<\/strong><\/p>\n

\u00a0<\/p>\n

For the Years Ended December 31<\/strong><\/p>\n

\u00a0<\/p>\n

2012 2011<\/strong><\/p>\n

\u00a0<\/p>\n

Net sales $1,890,540 $1,750,500<\/p>\n

\u00a0<\/p>\n

Cost of goods sold 1,058,540 1,006,000<\/p>\n

\u00a0<\/p>\n

Gross profit 832,000 744,500<\/p>\n

\u00a0<\/p>\n

Selling and administrative expenses 500,000 479,000<\/p>\n

\u00a0<\/p>\n

Income from operations 332,000 265,500<\/p>\n

\u00a0<\/p>\n

Other expenses and losses<\/p>\n

\u00a0<\/p>\n

Interest expense 22,000 20,000<\/p>\n

\u00a0<\/p>\n

Income before income taxes 310,000 245,500<\/p>\n

\u00a0<\/p>\n

Income tax expense 92,000 73,000<\/p>\n

\u00a0<\/p>\n

Net income $218,000 $ 172,500<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

LUCILLE COMPANY<\/strong><\/p>\n

\u00a0<\/p>\n

Balance Sheets<\/strong><\/p>\n

\u00a0<\/p>\n

December 31<\/strong><\/p>\n

\u00a0<\/p>\n

Assets 2012 2011<\/strong><\/p>\n

\u00a0<\/p>\n

Current assets<\/p>\n

\u00a0<\/p>\n

Cash $ 60,100 $ 64,200<\/p>\n

\u00a0<\/p>\n

Short-term investments 74,000 50,000<\/p>\n

\u00a0<\/p>\n

Accounts receivable 117,800 102,800<\/p>\n

\u00a0<\/p>\n

Inventory 126,000 115,500<\/p>\n

\u00a0<\/p>\n

Total current assets 377,900 332,500<\/p>\n

\u00a0<\/p>\n

Plant assets (net) 649,000 520,300<\/p>\n

\u00a0<\/p>\n

Total assets $1,026,900 $852,800<\/p>\n

\u00a0<\/p>\n

Liabilities and Stockholders\u2019 Equity<\/strong><\/p>\n

\u00a0<\/p>\n

Current liabilities<\/p>\n

\u00a0<\/p>\n

Accounts payable $ 160,000 $145,400<\/p>\n

\u00a0<\/p>\n

Income taxes payable 43,500 42,000<\/p>\n

\u00a0<\/p>\n

Total current liabilities 203,500 187,400<\/p>\n

\u00a0<\/p>\n

Bonds payable 220,000 200,000<\/p>\n

\u00a0<\/p>\n

Total liabilities 423,500 387,400<\/p>\n

\u00a0<\/p>\n

Stockholders\u2019 equity<\/p>\n

\u00a0<\/p>\n

Common stock ($5 par) 290,000 300,000<\/p>\n

\u00a0<\/p>\n

Retained earnings 313,400 165,400<\/p>\n

\u00a0<\/p>\n

Total stockholders\u2019 equity 603,400 465,400<\/p>\n

\u00a0<\/p>\n

Total liabilities and stockholders\u2019 equity $1,026,900 $852,800<\/p>\n

\u00a0<\/p>\n

All sales were on account. Net cash provided by operating activities for 2012 was $220,000.<\/p>\n

\u00a0<\/p>\n

Capital expenditures were $136,000, and cash dividends were $70,000.<\/p>\n

\u00a0<\/p>\n

Instructions<\/em><\/strong><\/p>\n

\u00a0<\/p>\n

Compute the following ratios for 2012.<\/p>\n

\u00a0<\/p>\n

(a) Earnings per share. (h) Days in inventory.<\/p>\n

\u00a0<\/p>\n

(b) Return on common stockholders\u2019 equity. (i) Times interest earned.<\/p>\n

\u00a0<\/p>\n

(c) Return on assets. (j) Asset turnover.<\/p>\n

\u00a0<\/p>\n

(d) Current ratio. (k) Debt to total assets.<\/p>\n

\u00a0<\/p>\n

(e) Receivables turnover. (l) Current cash debt coverage.<\/p>\n

\u00a0<\/p>\n

(f ) Average collection period. (m) Cash debt coverage.<\/p>\n

\u00a0<\/p>\n

(g) Inventory turnover. (n) Free cash flow.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

P2-6A Condensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page. SIEVERT CORPORATION Balance Sheets \u00a0 December 31 \u00a0 Assets 2012 2011 \u00a0 Cash $ 28,000 $ 20,000 \u00a0 Receivables (net) 70,000 62,000 \u00a0 Other current assets 90,000 73,000 \u00a0 Long-term investments 62,000 60,000 \u00a0 Plant and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-132268","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/132268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=132268"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/132268\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=132268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=132268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=132268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}