CHECKLIST OF KEY FIGURES

For Exercises and Problems in

Kimmel, Weygandt, Kieso
FINANCIAL ACCOUNTING: TOOLS FOR BUSINESS DECISION MAKING, SIXTH EDITION

Exer.
No.
1-4
1-5
1-6
1-8
1-9
1-10
1-11
1-12
1-13
1-14
1-15
1-16

Chapter 1
Net income $13,400.
Net income $12,901.3.
Ending retained earnings $290,000.
(b) Net income $34,286.
Common stock $30,000; Cost of goods sold $55,000.
(b) Ending retained earnings $27,000; total assets $128,000.
(b) Net income $1,208.
(a) Net increase in cash $18,000.
(a) Net increase in cash $823.
Total assets $79,500.
(b) Total assets $13,249.6; total liabilities $4,556.5.
(c) Dividends $30,000.
(f) Total revenues $140,000.

P1-3A Net income $3,800, Retained earnings $2,400, Total assets, $37,000
P1-4A Net cash provided by operating activities $28,000
P1-5A (b) Total assets $85,000
P1-3B Net income $4,300, Retained earnings $2,600, Total assets $78,000
P1-4B Net cash provided by operating activities $18,000
P1-5B (b) Net income $37,000
BYP 1-1 (e) Increase in net income $14,698,000
BYP 1-2 Hersheys net income $435,994; Tootsie Rolls net income $53,475
BYP 1-7 Total assets $34,000

Chapter 2
Exer.
No.
2-3
2-4
2-5
2-6
2-7
2-8

Total current assets $35,275.

Total current assets $2,945,021.
Total assets $212,720.
Total assets $12,119.
(a) 2008 earnings per share $1.01.
(a) Net loss $(2,500).
(b) Total assets $51,480.

2-9
2-10
2-11

(a) Ending current ratio 2.06:1.

(b) Current ratio 2.0:1.
(b) 2009 Free cash flow ($45,536).

P2-1A Total assets $13,689,848

P2-2A Net income $21,400, Retained earnings $40,400, Total assets $73,700
P2-3A Net income $2,230, Retained earnings $3,505
Total assets $9,157
P2-4A (a) Earnings per share, Duran $3.10, (c) Free cash flow: Kiepert $1,000
P2-5A (ii) Current ratio 2.35:1 (iii) Free cash flow $67,800
P2-6A (b) 2012 Working capital $113,000 (e) 2012 Free cash flow $17,000
P2-7A (b) Current ratio: Target 1.66:1 Wal-Mart .88:1
(d) Free cash flow: Target $418 Wal-Mart $7,902
P2-1B Total assets $11,200
P2-2B Net income $6,200, Retained earnings $17,900, Total assets $33,800
P2-3B Net income $9,700, Retained earnings $20,860, Total assets $49,135
P2-4B (a) Earnings per share: Weber $.34 (c) Free cash flow: Al Sharif $22,000
P2-5B (i) Current ratio 2.0:1, (iv) Free cash flow $19,300
P2-6B (b) 2012 Working capital $116,000 (e) 2012 Free cash flow $30,000
P2-7B (b) Current ratio: Blockbuster 1.12:1 Movie Gallery .89:1
(d) Free cash flow: Blockbuster $239 Movie Gallery ($30)
BYP 2-1 2009 current assets $211,878,000
BYP 2-2 (a)
Hershey Foods
Tootsie Roll
2. Current ratio
1.5:1
3.8:1
4. Free cash flow
$676,022
$36,625
BYP 2-4 (a) Percentage decrease in total assets 9.5%

Chapter 3
Exer.
No.
3-2
Ending cash $15,000
3-3
Ending cash $56,800
3-4
(b) Stockholders equity increase $23,400.
(c) Net income $5,400.
3-5
Net income $5,400; Total assets $26,200.
3-10 (b) Totals $44,040.
3-11 (a) Total assets $21,500.
3-12 (b) Totals $21,700.
3-13 (b) Totals $18,100.
3-14 (b) Totals $21,200.
3-16 (a) Totals $98,370.
(b) Net income $5,214; Total assets $87,384.
P3-1A (a) Ending cash balance: $34,800; (b) Net income $9,100
P3-2A (a) Ending cash balance: $18,270; (b) Net income $2,170
P3-3A (a) Ending cash balance: $7,150; (b) Net income $2,570

P3-5A (b) Ending balances: Cash $18,800, Accounts Payable $1,000

(c) Trial balance totals $24,400
P3-6A (c) Ending balances: Cash $5,700
(d) Trial balance totals $24,100
P3-7A Trial balance totals $16,900
P3-8A (c) Ending balances: Cash $32,750, Accounts Payable $9,100
(d) Trial balance totals $128,800
P3-1B (a) Ending cash balance: $15,510; (b) Net income $4,910
P3-2B (a) Ending cash balance: $12,680; (b) Net income $2,170
P3-3B (a) Ending cash balance: $10,250; (b) Net income $8,130
P3-5B (b) Ending balances: Cash $43,700, Accounts Payable $400
(c) Trial balance totals $49,400
P3-6B (c) Ending balances: Cash $7,464, Accounts Payable $6,710
(d) Trial balance totals $55,540
P3-7B Trial balance totals $25,220
P3-8B (c) Ending balances: Cash $6,660 Accounts Payable $1,850
(d) Trial balance totals $35,890
BYP 3-6 (c) Correct net income $5,900

Chapter 4

Exer.
No.
4-4
Accrual basis earnings $34,180.
4-5
(a) Cash basis income $7,600.
4-6
(a) Net income $16,005.
(b) Total assets $36,425.
4-12 Net income $2,040.
4-13 (a) $1,350; (c) $1,760.
4-17 Net income $14,100; Total assets $34,500.

P4-1A (b) Cash received $199,000

P4-2A (b) Ending balances: Prepaid Insurance $2,640, Salaries and Wages Expense $5,250
(c) Adjusted trial balance totals $45,310
P4-3A (b) Ending balances: Prepaid Insurance $1,350, Salaries and Wages Expense $3,900
(c) Adjusted trial balance totals $114,630; (d) Net income $3,570, Total assets $106,150
P4-4A (b) Net income $2,510, Retained earnings $1,910, Total assets $23,430
P4-6A (b) Net income $33,285
P4-7A (e) Ending balances: Cash $1,840, Salaries and Wages Expense $2,080
(f) Adjusted trial balance totals $22,680; (g) Net loss ($1,030), Total assets $17,800
P4-8A (e) Ending balances: Cash $5,410, Retained Earnings $3,200
(f) Adjusted trial balance totals $25,880 (g) Net income $4,300, Total assets $21,500
P4-1B (b) Cash received $184,000
P4-2B (b) Ending balances: Prepaid Insurance $3,450, Salaries and Wages Expense $4,960
(c) Adjusted trial balance totals $37,500
P4-3B (b) Ending balances: Prepaid Insurance 4,050, Salaries and Wages Expense $53,600
(c) Adjusted trial balance totals $319,050; (d) Net income 11,500, Total assets $236,300

P4-4B (b) Net income $38,810, Retained earnings $34,310, Total assets $68,790
P4-6B (b) Net income $10,100
P4-7B (e) Ending balances: Cash $3,110, Salaries and Wages expense $2,000
(f) Adjusted trial balance totals $30,590; (g) Net income $1,300, Total assets $24,370
P4-8B (e) Ending balances: Cash $6,200, Retained Earnings $2,150
(f) Adjusted trial balance totals $28,930 (g) Net income $3,050, Total assets $22,730
BYP 4-6 (a) Net income $16,790
BYP 4-9 Total assets $15,350

Exer.
No.
5-1
5-3
5-4
5-5
5-6
5-7
5-8
5-9
5-10
5-11
5-13

Chapter 5
(a) (5) Cash paid $23,912.
(a) (3) Cash received $ 470,250.
(a) Cash paid (June 19) $8,148.
Net sales $864,500.
(a) Net income $14,250.
(b) Profit margin ratio-Indig .14;
Gross profit rate-Perez .40.
(a) Net income $63,500.
(a) Net income $537.
Cost of goods sold $154,700.
(b) $1,550, (d) $40, (f) $120,
(h) $640, (j) $5,000, (l) $44,530.
(a) (5) Cash paid $22,932.

P5-1A (b) Ending balances: Cash $3,496, Inventory $5,952

(c) Gross profit $2,828
P5-3A (b) Ending balances: Cash $1,587, Inventory $4,263
(c) Trial balance totals $8,150; (d) Gross profit $700
P5-4A (a) Net income $32,900, Retained earnings $35,100, Total assets $146,400
P5-5A Net income $69,000
P5-6A (b) Ending balances: Accumulated Depreciation- Equipment $47,500
(c) Adjusted trial balance totals $1,365,500
(d) Net income $81,100, Retained earnings $138,300, Total assets $399,000
P5-7A Gross profit $272,600
P5-8A (g) Purchases $32,960; (h) Cash payments $34,860
P5-9A (b) Ending balances: Cash $1,587; Accounts Receivable $850,
(c) Trial balance totals $8,427; (d) Gross profit $700
P5-1B (b) Ending balances: Cash $2,596, Inventory $8,544
(c) Gross profit $6,320
P5-3B (b) Ending balances: Cash $1,086, Inventory $3,244
(c) Trial balance totals $5,610; (d) Gross profit $460
P5-4B (a) Net income $28,300, Retained earnings $32,500, Total assets $313,800
P5-5B Net income $51,150
P5-6B (b) Ending balances: Accumulated Depreciation- Equipment $61,000

(c) Adjusted trial balance totals $1,015,400

(d) Net income $14,300, Retained earnings $32,300, Total assets $199,500
P5-7B Gross profit $267,000
P5-8B (b) Gross profit-2011, $78,100; 2013-$78,600
P5-9B (b) Ending balances: Cash $1,086; Accounts Receivable $330
(c) Trial balance totals $5,846; (d) Gross profit $460
CP (b) Ending balances: Cash $12,820, Inventory $8,720
(d) Adjusted trial balance totals $65,500
(e) Net income $540, Total assets $45,340
BYP 5-1 (a) 2008 to 2009 sales increased .7%
(c) 2009 gross profit rate 35.7%
BYP 5-2 (a)
Tootsie Roll
Hershey
(1) Profit margin ratio
10.7%
8.2%
(3) Gross profit rate
35.7%
38.7%
BYP 5-4 (a) Gross profit rate: Carrefour 22.5%, Wal-Mart 22.5%
(b) Profit margin ratio: Carrefour 2.5%, Wal-Mart 3.5%
BYP 5-6 (a) (1) Net income $62,000 (c) Net income $93,440

Exer.
No.
6-1
6-2
6-4
6-5
6-7
6-8
6-9
6-10
6-11
6-12
6-13
6-14
6-15

Chapter 6
Correct inventory $309,000.
Correct inventory $558,000.
(a) Cost of goods sold: FIFO $12,010; LIFO $12,065.
(a) $729; (b) $746.36; (c) $767.
(a) Cost of goods sold: FIFO $4,640; LIFO $5,000; Average $4,788.
(a) LIFO Net income $14,700; (b) FIFO Net cash provided $28,000.
Total LCM $4,373.
2008: Inventory turnover 8.5; Gross profit rate .529.
(a) Inventory turnover 5.98.
(b) Adjusted current ratio 2.53:1.
(a) Ending inventory: FIFO $1,680; LIFO $1,520; Moving average $1,639.
(a) FIFO $1,155; LIFO $1,140; Average $1,152.
2012 Cost of goods sold $161,000.
(a) 2012 Gross profit $71,000.

P6-2A (a) Cost of goods available for sale $137,000

(b) Ending inventory: FIFO $32,000, LIFO $21,500, Average cost $27,399
P6-3A (a) Cost of goods available for sale $16,800
(b) Ending inventory; FIFO $2,300, Average cost $1,976, LIFO $1,700
P6-4A Net income FIFO $183,456, LIFO $172,008
P6-5A Gross profit: LIFO $2,970, FIFO $3,310, Average cost $3,133
P6-6A (a) (1) Gross profit $162,500 (b) Cost of goods sold: FIFO $199,000, LIFO $206,150
P6-7A (a) Inventory turnover ratio 11.5, (c) Current ratio .86:1
P6-8A (a) Ending Inventory: LIFO $1,400, FIFO $1,750, Moving average $1,647
P6-9A Ending inventory: FIFO $213, Average cost $207, LIFO $195

P6-2B (a) Cost of goods available for sale $89,000

(b) Ending inventory: FIFO $28,400 LIFO $18,600 Average cost $23,133
P6-3B (a) Cost of goods available for sale $27,170
(b) Ending inventory: FIFO $7,820, LIFO $5,910, Average cost $6,856
P6-4B Net income FIFO $120,360, LIFO $115,940
P6-5B Gross profit: LIFO $3,045, FIFO $3,320, Average cost $2,553
P6-6B (a) Gross profit: FIFO $1,471, LIFO $1,240
P6-7B (a) Inventory turnover ratio 16.1 (c) Current ratio 1.095:1
P6-8B (a) Ending inventory: LIFO $550, FIFO $600, Moving average $579
P6-9B (a) Ending inventory: FIFO $312, Average cost $304, LIFO $292
CP (b) Ending balances: Inventory $2,342, Cost of Goods Sold $4,098
(c) Adjusted trial balance totals $41,055
(d) Net income $767, Total assets $34,262
(e) Ending inventory: FIFO $2,336, LIFO $1,800
BYP 6-1 (b) Percentage increase in inventories 1.4%
BYP 6-2 (a) Tootsie Roll days in inventory: 64.0 days
BYP 6-4 (d) 2009 Days in inventory: 93.6
BYP 6-6 (a) Inventory turnover2012: 7.5, Days in inventory2011: 45.1

Chapter 7
Exer.
No.
7-6
7-7
7-8
7-9
7-10
7-11
7-12
7-14
7-15
7-16
P7-3A
P7-4A
P7-5A
P7-6A
P7-7A
P7-8A
P7-3B
P7-4B
P7-5B
P7-6B

(a) Adj. cash bal. $3,497.20.

Total $1,560.
(a) Adj. cash bal. $9,342.
(a) Adj. cash bal. $18,855.
(a) $1,880; (b) $2,040.
(c) $1,700; (d) $2,600.
(c)Adj. cash bal. $18,740.
(a) Total $17,620.
End. cash bal. Jan. $24,000.
Cash over and short $1.30.
Cash over and short $3.40.
(a) Adjusted cash balance $7,024
(a) Adjusted cash balance $13,176.80
(a) Adjusted cash balance $8,931.90
Borrowings $1,800
January expected collections from customers $326,000,
January expected payments for purchases $110,000,
January: total receipts $341,000, total disbursements $344,000
(a) Adjusted cash balance $21,018.72
(a) Adjusted cash balance $7,947.50
(a) Adjusted cash balance $14,209.20
(a) Adjusted cash balance $5,902.70
(a) January borrowings $32,000

P7-7B January expected collections from customers $293,000,

January expected payments for purchases $98,000,
January: total receipts $295,000, total disbursements $310,000
P7-8B (a) Adjusted cash balance $14,687.21
CP (b) Ending balances: Cash $23,520, Accounts Receivable $4,700
(f) Adjusted trial balance totals $89,125
(g) Net income $1,175, Total assets $72,100
BYP 7-2 (b) Cash as % of total assets 2009: Tootsie Roll 10.9%

Chapter 8
Exer.
No.
8-1
8-2
8-3
8-4
8-5
8-6
8-7
8-8
8-9
8-11
8-13
8-15
8-16
8-17

Sales discounts $92.

Interest revenue $6.
(e) Accounts Receivable $229,700.
(b) $6,700; (c) $6,740.
(b) $6,575.
Bad debts exp. $9,500.
Interest revenue $761.
Interest revenue 2012 $100.
Net receivables $4,400.
(a) Receivables turnover 9.2.
Service charge expense $28,400.
Service charge expense $152.
Service charge expense $10.
Collections $227,000.

P8-1A (a) Total estimated bad debts $10,120

P8-2A (b) Balance in Accounts Receivable $809,000
P8-3A (c) Bad Debts Expense $34,400
P8-4A (c) Bad Debts Expense $34,600
P8-5A (b) Bad Debts Expense $11,700
P8-8A (c) Total receivables $14,550
P8-9A (a) Nike: Average collection period 53.7 days
P8-1B (a) Total estimated bad debts $16,890
P8-2B (b) Balance in Accounts Receivable $1,318,000
P8-3B (c) Bad Debts Expense $36,100
P8-4B (c) Bad Debts Expense $18,000
P8-5B (c) Bad Debts Expense $30,800
P8-8B (c) Total receivables $14,449
P8-9B (a) Intel: Average collection period 20.7 days
CP (b) Adjusted trial balance totals $70,447
(c) Net income $2,011, Total assets $45,253
BYP8-1 Receivables turnover ratio: 14.4, average collection period, 25.3 days
BYP 8-2 (a) (2) Hershey average collection period 29.9 days
BYP 8-4 (a) Receivables turnover ratio 11.7

BYP 8-6 (a) 2012: Total expenses as a percentage of net credit sales 3.8%
2012: Net expenses as a percentage of net sales 4.3%

Chapter 9
Exer.
No.
9-3
9-5
9-6
9-7
9-8
9-10
9-11
9-12
9-13
9-14
9-17
9-18
9-19

(a) $93,600.
2012 depreciation $2,562.50.
(a) Building $13,375; Warehouse $6,227.
(b) $11,000 gain.
(c) $6,000 loss.
June 30 loss $1,000.
(a) 1.42.
(a) Return on assets-with .08.
(a) Return on assets 6.2%.
Amort. Exp.-Patent $11,250.
Amort. Exp.-Patent $56,000;
Amort. Exp.-Franchise $30,000.
Net income (15-year) $102,000.
(a) $.575 per mile.
(b) 2013 depr. expense $29,900.
(a) 2013 depreciation $21,093.75.
(b) Depreciation $4,563.

P9-1A Land $302,170

P9-2A (a) May 1 Gain on disposal $10,000; (c) Total plant assets $50,037,500
P9-3A June 30 Gain on disposal $3,000
P9-4A (c) Total intangible assets $315,300
P9-6A (a) Phelan (1) Return on assets ratio 7.5%, (3) Asset turnover ratio .36 times
P9-7A (a) Machine 2 2011 $17,000; (b) 2011 $25,500
P9-8A (a) Straight-line depreciation expense $55,000 (all years)
2013 double-declining-balance depreciation $62,500
P9-1B Land $302,000
P9-2B (a) May 1 Gain on disposal $17,000; (c) Total plant assets $61,072,000
P9-3B March 31 Gain on disposal $1,750
P9-4B (c) Total intangible assets $248,950
P9-6B (a) Culver (1) Return on assets ratio 26%, (3) Asset turnover ratio .80 times
P9-7B (a) Bus 2 2011 $67,500; (b) 2011 $56,250
P9-8B (a) Straight-line depreciation expense $66,000 (all years)
2013 double-declining-balance depreciation $84,000
CP (a) 2. Gain on disposal $750
(b) Trial balance totals $1,205,400
(c) Net income $51,150, Total assets $247,850
BYP9-2 (a) Hershey (1) Return on assets ratio 11.9%, (3) Asset turnover ratio 1.45
BYP 9-4 2009 Gross profit rate 69.3%
BYP 9-6 (a) Return on assetsproposed without .135

Asset turnoverproposed with .50

BYP 9-8 (c) Income before income taxes increase $155,000

Exer.
No.
10-1
10-2
10-3
10-4
10-5
10-6
10-7
10-8
10-9
10-11
10-12
10-13
10-14
10-15
10-16
10-18
10-19
10-20
10-21
10-22

Chapter 10
(c) $700.
(a) $18,000.
(d) $2,400.
Sales taxes pay.-Hubbard $780.
(a) Salaries and wages payable $48,104.
(b) 11 games.
(b) $14,700.
(c) $44,100.
(b) Interest expense $17,500.
(b) Interest expense $24,000.
(b) Interest expense $28,000.
(a) Loss $14,900.
(b) Gain $17,400.
(b) Total long-term liab. $10,158.7.
(a) (2) 1.14:1; (4) 14.71.
(b) 2.28.
(b) 1.58:1.
(b) Interest expense $29,500.
(b) Interest expense $24,800.
(b) Interest expense $28,858.
(b) Interest expense $24,478.
First install. interest $8,400;
Second install. interest $8,223.

P10-1A (c) Total current liabilities $146,724

P10-2A (b) Balance in Notes Payable $42,500; (d) Total interest expense $770
P10-5A (b) Long-term liabilities $5,888,000
P10-6A (a) 2008 Free cash flow ($2,457); 2008 times interest earned 3.14
P10-7A (c) Loss on bond redemption $11,600
P10-8A (c) Premium case: Total long-term liabilities $2,032,000
P10-9A (d) (1) Long-term liabilities $3,081,000
P10-10A (b) Bond carrying value $1,699,516
P10-11A (b) Bond carrying value $2,124,196
P10-12A (c) Total liabilities $296,141
P10-13A (a) June 30, 2015 Balance 34,188
P10-1B (c) Total current liabilities $133,366
P10-2B (b) Balance in Notes Payable $57,000; (d) Total interest expense $1,155
P10-5B (b) Long-term liabilities $5,135,000
P10-6B (a) 2010 Free cash flow $11,860; 2010 Debt to total assets 62%

P10-7B (c) Gain on bond redemption $90,000

P10-8B (c) Premium case: Total long-term liabilities $2,548,000
P10-9B (d) (1) Long-term liabilities $2,550,600
P10-10B (b) Bond carrying value $1,057,864
P10-11B (b) Bond carrying value $3,431,732
P10-12B (c) Total liabilities $382,702
P10-13B (a) June 30, 2012 Balance $83,667
CP (b) Trial balance totals $687,695
(c) Net income $72,905, Total assets $271,600
BYP10-2 (a) Tootsie Roll: Current ratio 3.78:1
(b) Tootsie Roll: Debt to total assets 22.2%
BYP10-4 (a) Home Depot working capital $2,076 (in millions), Current ratio 1.73:1
(b) Debt to total assets 35%, Times interest earned 72.7 times
BYP10-6 (a) 1. Gain on redemption $446,000
BYP10-10 Total tax $24,454

Exer.
No.
11-1
11-3
11-4
11-6
11-7
11-8
11-9
11-10
11-11
11-12
11-13
11-14
11-15
11-16

Chapter 11
(b) Total paid-in cap. in excess of stated value $480,000.
(b) Paid-in capital in excess of par value $400,000.
(a) 574,000; (c) $100; (e) $1,158,000.
(b) Dividends declared $220,300.
Outstanding shares: after stock div. 85,050; After stock split 162,000.
Total stock. equity $109,219.
Total stock. equity $4,557,000.
Total stock. equity $3,030,000.
2012 payout ratio 59.1%.
2009 payout ratio 23.5%.
(a) 2012 return 17.4%..
(a) Earnings per share $4.
(a) 2012 $4.20
(b) Stock Dividends dr. $324,000.

P11-1A (b) Preferred Stock $750,000, Paid-in Capital in Excess of Par Value - Preferred Stock
$54,000; (c) Total paid-in capital $1,829,000
P11-2A (b) Common Stock $1,020,000, Paid-in Capital in Excess of Stated Value - Common
Stock $490,000; (c) Total stockholders equity $2,600,500
P11-3A Total stockholders equity $23,153,000
P11-4A (a) Retained Earnings balance $2,860,000
(b) Total stockholders equity $7,160,000
P11-5A (b) Total paid-in capital $3,690,000, Total stockholders equity $3,736,000
P11-6A Total stockholders equity $3,317,000
P11-7A 2012 Return on assets 14.3%, 2012 Payout ratio 39.7%, 2012 Times interest earned 6.8
P11-8A (c) Total paid-in capital $1,298,000, Total stockholders equity $2,138,800; (d) Payout
ratio 20.3%, Return on common stockholders equity 20.2%

P11-1B (b) Preferred Stock $900,000, Paid-in Capital in Excess of Par Value - Preferred Stock
$22,000; (c) Total paid-in capital $1,470,000
P11-2B (b) Common Stock $1,020,000, Paid-in Capital in Excess of Stated Value Common
Stock $1,440,000; (c) Total stockholders equity $4,443,600
P11-3B Total stockholders equity $4,625,000
P11-4B (a) Retained Earnings balance $805,000; (b) Total stockholders equity $5,375,000
P11-5B Total paid-in capital $5,608,000, Total stockholders equity $7,486,000
P11-6B Total stockholders equity $2,647,000
P11-7B (a) 2012 Return on assets 14.7%, 2012 Payout ratio 34.6%, 2012 Times interest earned
8.9
P11-8B (c) Total paid-in capital $2,140,000, Total stockholders equity $2,958,000; (d) Payout
ratio 26.4%, Return on common stockholders equity 18.0%
CP (b) Adjusted trial balance totals $740,690
(c) Net income $81,970, Total assets $421,000
BYP 11-1 (d) Return on common stockholders equity 8.3%
BYP 11-2 Hershey: Return on common stockholders equity 78.5%
BYP 11-4 (b) Host Marriott: Debt to total assets ratio 81.4%
(c) Host Marriott: Return on assets ratio (.7%)
BYP 11-6 (a) Return on assets 9.6%; (b) Payout ratio 13.8%; (c) Interest coverage 11.2 times

Exer.
No.
12-4
12-5
12-6
12-7
12-8
12-9
12-10
12-11
12-12
12-13
12-14
12-15

Chapter 12
Net cash provided $228,000.
Net cash provided $191,000.
Net cash provided $427,900.
Net cash provided $108,000.
(a) Net cash provided $133,000.
(a) PepsiCo. .77 times.
(b) Coca-Cola .38 times.
(a) Meadow 1.6 times.
(b) Plain .4 times.
Net cash provided $78,000.
(a) $5,157.1; (b) $9,351.9.
Net cash provided $61,000.
Net cash provided $88,600.
Rent $31,500; Receipts from customers $169,000.

P12-2A (a) Net income $58,800

P12-3A Net cash provided by operating activities $1,940,000
P12-4A Net cash provided by operating activities $1,940,000
P12-5A Net cash provided by operating activities $305,000
P12-6A Net cash provided by operating activities $305,000
P12-7A Net cash provided by operating activities $38,500, Net cash used by financing
activities ($32,000)
P12-8A Net cash provided by operating activities $38,500, Net cash used by financing

activities ($32,000)
P12-9A Net cash provided by operating activities $176,930, Net cash used by financing
activities ($17,030)
P12-10A Net cash provided by operating activities $176,930, Net cash used by financing
activities ($17,030)
P12-11A Net cash provided by operating activities $94,000, Net cash used by investing
activities ($12,000)
P12-2B (a) Cash proceeds $5,000
P12-3B Net cash provided by operating activities $1,148,000
P12-4B Net cash provided by operating activities $1,148,000
P12-5B Net cash provided by operating activities $123,000
P12-6B Net cash provided by operating activities $123,000
P12-7B Net cash provided by operating activities $5,000, Net cash used by financing
activities ($15,000)
P12-8B Net cash provided by operating activities $5,000, Net cash used by financing
activities ($15,000)
P12-9B Net cash provided by operating activities $90,800, Net cash provided by financing
activities $75,000
P12-10B Net cash provided by operating activities $90,800, Net cash provided by financing
activities $75,000
P12-11B Net cash provided by operating activities $46,000, Net cash provided by investing
activities $5,000
BYP 12-2 (a) Hershey: 1. Current cash debt coverage ratio .98, 2. Cash debt coverage ratio .34
BYP 12-4 (a) Current ratio 1.31, Current cash debt coverage ratio (.13)
BYP 12-6 (b) Net cash provided by operating activities $15,000

Exer.
No.
13-1
13-2
13-3
13-4
13-5

Chapter 13

Net income $289,000.

(e) 75,514,706.
Total assets increase 15.0%.
Net income: 2011, 8.0%; 2012, 8.8%.
(a) Total assets increase 6.5%.
(b) Current assets 73.5%.
13-6 (a) Net income increase 13.9%.
(b) Net income-2012 6.8%.
13-7 Current cash debt .69; Receivables turnover 4.2; Inventory turnover 5.9.
13-8 Feb. 7, 2.43; Feb. 18, 2.66.
13-9 (b) 5.4; (d) 3.6; (f) .31.
13-10 (b) 1.64; (d) 7.6%.
13-11 (a) $1.86; (c) 22.2%.
13-12 (a) $722,000; (c) $111,595.
P13-1A (a) Gold Company: Income from operations as a percent of sales 32.1%, Net income as
a percent of sales 26.3%

P13-2A (a) Earnings per share $3.69; (c) Return on assets 23.2%; (e) Receivables turnover
17.1 times (i) Times interest earned 15.1 times
P13-3A (a) 2012 Profit margin 13.6%, Price-earnings ratio 2.8 times, Debt to total assets 32%
P13-4A (a) 2012: Current ratio 1.76, Inventory turnover 3.2 times, Profit margin 5.9%, Earnings
per share $2.60
P13-5A (a) Target: Current ratio 1.63:1, Asset turnover 1.5, Times interest earned 6.5
P13-1B (a) Lewis Company: Income from operations as a percent of sales 23.8%, Net income as
a percent of sales 18.5%
P13-2B (a) Earnings per share $8.23; (c) Return on assets 16.1%; (e) Receivables turnover
8.2 times; (i) Times interest earned 16.4 times
P13-3B (a) 2012 Profit margin 15.8%, Price-earnings ratio 0.9 times, Debt to total assets 28%
P13-4B (a) 2012: Current ratio 2.03:1, Inventory turnover 1.86 times, Profit margin 12.4%,
Earnings per share $1.30
P13-5B (a) Snap-on: Current ratio 2.27:1, Asset turnover .79, Times interest earned 5.1
BYP 13-1 (a) 2009 (1) Net sales trend 102% of base year; (b) (1) 2009 debt to total assets 22%
BYP 13-2 (a) Tootsie Roll: (1) Percentage increase in sales 0.7%, (2) Percentage increase in
total assets 3.0%
BYP13-4 (a) Coca-Cola: Current ratio 1.28:1, Receivables turnover 9.1 times; (b) Times interest
earned 26.0 times; (c) Return on assets 15.3%

Exer.
No.
D-1
D-4
D-5
D-8
D-11
D-13
D-15
D-16
D-19
D-21
D-23

Exer.
No.
E-1
E-2
E-3
E-4
E-5
E-6

Appendix D
(b) $14,366,88.
$981,075.42.
$37,800.33.
(b) $125,605.76.
$467,084.70.
Present value of interest $183,469.
Present value of interest $17,751.86.
Present value of bonds $2,459,105.
$105,169.42.
12 years.
8 payments.

Appendix E
(a) Gain on sale $1,200.
(a) Gain on sale $1,900.
Gain on sale $2,800.
(b) $225,000.
(a) Unrealized gain $72,000.
(a) Unrealized loss $4,800.

E-7
E-8

(a) Unrealized loss $4,800.

(a) Unrealized gain-income $12,000.

PE-1 (c) Debt investments at fair value $586,000

PE-2 (a) Stock Investments balance $61,500
(c) Short-term investments, at fair value $54,000
PE-3 (a) Stock Investments balance $86,400
(c) Investment in stock of less than 20% owned companies, at fair value $89,700
PE-4 (c) Revenue from investment in Ginger under equity method $240,000
PE-5 (d) Investments in stock of less than 20% owned companies, at fair value $155,000
PE-6 Total current assets $461,000, Total assets $2,644,000