need of assistance

Putnam Corporation had these transactions during 2014.

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

(a)		Purchased a machine for $30,000, giving a long-term note in exchange.		[removed]
(b)		Issued $50,000 par value common stock for cash.		[removed]
(c)		Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.		[removed]
(d)		Declared and paid a cash dividend of $13,000.		[removed]
(e)		Sold a long-term investment with a cost of $15,000 for $15,000 cash.		[removed]
(f)		Collected $16,000 of accounts receivable.		[removed]
(g)		Paid $18,000 on accounts payable.		[removed]

Shown below are comparative balance sheets for Schmitt Company.

SCHMITT COMPANY Comparative Balance Sheets December 31
Assets		2014			2013
Cash		$ 68,000			$ 22,000
Accounts receivable		88,000			76,000
Inventory		167,000			189,000
Land		80,000			100,000
Equipment		260,000			200,000
Accumulated depreciation—equipment		(66,000	)		(32,000	)
Total		$597,000			$555,000
Liabilities and Stockholders’ Equity
Accounts payable		$ 39,000			$ 43,000
Bonds payable		150,000			200,000
Common stock ($1 par)		216,000			174,000
Retained earnings		192,000			138,000
Total		$597,000			$555,000

Additional information:

1.		Net income for 2014 was $93,000.
2.		Depreciation expense was $34,000.
3.		Cash dividends of $39,000 were declared and paid.
4.		Bonds payable amounting to $50,000 were redeemed for cash $50,000.
5.		Common stock was issued for $42,000 cash.
6.		No equipment was sold during 2014.
7.		Land was sold for its book value.

Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000, or in parenthesis e.g. (15,000)).

SCHMITT COMPANY Statement of Cash Flows For the Year Ended December 31, 2014
[removed]
[removed]		$[removed]
Adjustments to reconcile net income to
[removed]
[removed]	$[removed]
[removed]	[removed]
[removed]	[removed]
[removed]	[removed]
		[removed]
[removed]		[removed]
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[removed]	[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		$[removed]

Compute these cash-based ratios: (Round ratios to 2 decimal places, e.g. 2.56.)

(1) Current cash debt coverage.

Current cash debt coverage

[removed]

times

(2) Cash debt coverage.

Cash debt coverage

[removed]

times

Here is financial information for Spangles Inc.

		December 31, 2014		December 31, 2013
Current assets		$106,000		$ 90,000
Plant assets (net)		400,000		350,000
Current liabilities		99,000		65,000
Long-term liabilities		122,000		90,000
Common stock, $1 par		130,000		115,000
Retained earnings		155,000		170,000

Prepare a schedule showing a horizontal analysis for 2014, using 2013 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

SPANGLES INC. Condensed Balance Sheet December 31
							Increase or (Decrease)
		2014		2013			Amount		Percentage
Assets
Current Assets		$106,000		$90,000			$[removed]		[removed]	%
Plant assets (net)		400,000		350,000			[removed]		[removed]	%
Total assets		$506,000		$440,000			$[removed]		[removed]	%
Liabilities
Current Liabilities		$99,000		$65,000			$[removed]		[removed]	%
Long-term liabilities		122,000		90,000			[removed]		[removed]	%
Total liabilities		$221,000		$155,000			$[removed]		[removed]	%
Stockholders’ Equity
Common stock, $1 par		130,000		115,000			[removed]		[removed]	%
Retained earnings		155,000		170,000			[removed]		[removed]	%
Total stockholders’ equity		285,000		285,000			[removed]		[removed]	%
Total liabilities and stockholders’ equity		$506,000		$440,000			$[removed]		[removed]	%

Operating data for Jacobs Corporation are presented below.

		2014		2013
Sales revenue		$800,000		$600,000
Cost of goods sold		520,000		408,000
Selling expenses		120,000		72,000
Administrative expenses		60,000		48,000
Income tax expense		30,000		24,000
Net income		70,000		48,000

Prepare a schedule showing a vertical analysis for 2014 and 2013. (Round percentages to 1 decimal place, e.g. 12.1%.)

JACOBS CORPORATION Condensed Income Statement For the Years Ended December 31
	2014					2013
	Amount		Percent			Amount		Percent
Sales	$800,000		[removed]	%		$600,000		[removed]	%
Cost of goods sold	520,000		[removed]	%		408,000		[removed]	%
Gross profit	280,000		[removed]	%		192,000		[removed]	%
Selling expenses	120,000		[removed]	%		72,000		[removed]	%
Administrative expenses	60,000		[removed]	%		48,000		[removed]	%
Total operating expenses	180,000		[removed]	%		120,000		[removed]	%
Income before income taxes	100,000		[removed]	%		72,000		[removed]	%
Income tax expense	30,000		[removed]	%		24,000		[removed]	%
Net income	$ 70,000		[removed]	%		$ 48,000		[removed]	%

Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.

LING COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2014
	[removed]		$[removed]
	[removed]		[removed]
	[removed]		[removed]
	[removed]		[removed]
	[removed]		[removed]
	[removed]
	[removed]		[removed]
	[removed]		$[removed]

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets		2014			2013
Cash		$ 80,800			$ 48,400
Accounts receivable		87,800			38,000
Inventory		112,500			102,850
Prepaid expenses		28,400			26,000
Long-term investments		138,000			109,000
Plant assets		285,000			242,500
Accumulated depreciation		(50,000	)		(52,000	)
Total		$682,500			$514,750
Liabilities and Stockholders’ Equity
Accounts payable		$ 102,000			$ 67,300
Accrued expenses payable		16,500			21,000
Bonds payable		110,000			146,000
Common stock		220,000			175,000
Retained earnings		234,000			105,450
Total		$682,500			$514,750

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue				$388,460
Less:
Cost of goods sold		$135,460
Operating expenses, excluding depreciation		12,410
Depreciation expense		46,500
Income tax expense		27,280
Interest expense		4,730
Loss on disposal of plant assets		7,500		233,880
Net income				$ 154,580

Additional information:

1.		New plant assets costing $100,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $26,030 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)

ODGERS INC. Statement of Cash Flows For the Year Ended December 31, 2014
[removed]
[removed]		$[removed]
Adjustments to reconcile net income to
[removed]
[removed]	$[removed]
[removed]	[removed]
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[removed]	[removed]
[removed]	[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		[removed]
[removed]		$[removed]

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets		2014			2013
Cash		$ 80,800			$ 48,400
Accounts receivable		87,800			38,000
Inventory		112,500			102,850
Prepaid expenses		28,400			26,000
Long-term investments		138,000			109,000
Plant assets		285,000			242,500
Accumulated depreciation		(50,000	)		(52,000	)
Total		$682,500			$514,750
Liabilities and Stockholders’ Equity
Accounts payable		$ 102,000			$ 67,300
Accrued expenses payable		16,500			21,000
Bonds payable		110,000			146,000
Common stock		220,000			175,000
Retained earnings		234,000			105,450
Total		$682,500			$514,750

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue				$388,460
Less:
Cost of goods sold		$135,460
Operating expenses, excluding depreciation		12,410
Depreciation expense		46,500
Income taxes		27,280
Interest expense		4,730
Loss on disposal of plant assets		7,500		233,880
Net income				$ 154,580

Additional information:

1.		New plant assets costing $100,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $26,030 was declared and paid during the year.

Further analysis reveals that accounts payable pertain to merchandise creditors.

Prepare a statement of cash flows for Odgers Inc. using the direct method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)

ODGERS INC. Statement of Cash Flows For the Year Ended December 31, 2014
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[removed]		$[removed]
[removed]: [removed]
[removed]	$[removed]
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[removed]		$[removed]

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY Income Statements For the Years Ended December 31
		2014		2013
Net sales		$1,890,540		$1,750,500
Cost of goods sold		1,058,540		1,006,000
Gross profit		832,000		744,500
Selling and administrative expenses		500,000		479,000
Income from operations		332,000		265,500
Other expenses and losses
Interest expense		22,000		20,000
Income before income taxes		310,000		245,500
Income tax expense		92,000		73,000
Net income		$ 218,000		$ 172,500

OSBORNE COMPANY Balance Sheets December 31
Assets		2014		2013
Current assets
Cash		$ 60,100		$ 64,200
Debt investments (short-term)		74,000		50,000
Accounts receivable		117,800		102,800
Inventory		126,000		115,500
Total current assets		377,900		332,500
Plant assets (net)		649,000		520,300
Total assets		$1,026,900		$852,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 160,000		$145,400
Income taxes payable		43,500		42,000
Total current liabilities		203,500		187,400
Bonds payable		220,000		200,000
Total liabilities		423,500		387,400
Stockholders’ equity
Common stock ($5 par)		290,000		300,000
Retained earnings		313,400		165,400
Total stockholders’ equity		603,400		465,400
Total liabilities and stockholders’ equity		$1,026,900		$852,800

All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000.

Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a)		Earnings per share		$[removed]
(b)		Return on common stockholders’ equity		[removed]	%
(c)		Return on assets		[removed]	%
(d)		Current ratio		[removed]	:1
(e)		Accounts receivable turnover		[removed]	times
(f)		Average collection period		[removed]	days
(g)		Inventory turnover		[removed]	times
(h)		Days in inventory		[removed]	days
(i)		Times interest earned		[removed]	times
(j)		Asset turnover		[removed]	times
(k)		Debt to assets		[removed]	%
(l)		Current cash debt coverage		[removed]	times
(m)		Cash debt coverage		[removed]	times
(n)		Free cash flow		$[removed]

The following control procedures are used in Kelton Company for over-the-counter cash receipts.

(a) For each procedure, explain the weakness in internal control and identify the control principle that is violated.

Procedure				Weakness		Principle Violated
1.		Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy.		[removed]		[removed]
2.		All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.		[removed]		[removed]
3.		To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.		[removed]		[removed]
4.		At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.		[removed]		[removed]
5.		The company accountant makes the bank deposit and then records the day’s receipts.		[removed]		[removed]