财务报表分析第十版第七章答案(部分).docVIP

Exercise 7-3 (30 minutes) Cash Flows from Operations Computation: Net income $10,000 Add (deduct) items to convert to cash basis: Depreciation, depletion, and amortization $8,000 Deferred income taxes 400 Amortization of bond discount 50 Increase in accounts payable 1,200 Decrease in inventories 850 10,500 $20,500 Undistributed earnings of unconsolidated subsidiaries and affiliates (200) Amortization of premium on bonds payable (60) Increase in accounts receivable (900) (1,160) Cash provided by operations $19,340 b. (1) The issuance of treasury stock for employee stock plans (as compensation) requires an addback to net income because it is an expense not using cash. (2) The cash outflow for interest is not included in expense and must be included as cash outflow in investing activities (as part of outlays for property.) (3) If the difference between pension expense and actual funding is an accrued liability, the unpaid portion must be added back to income as an expense not requiring cash. If the amount funded exceeds pension expense, then net income must be reduced by that excess amount. Exercise 7-4 (30 minutes) a. Beginning balance of accounts receivable $ 305,000 Net sales 1,937,000 Total potential receipts $2,242,000 Ending balance of accounts receivable - 295,000 Cash collected from sales $1,947,000 b. Ending balance of inventory $ 549,000 Cost of sales +1,150,000 Total $1,699,000 Beginning balance of inventory - 431,000 Purchases $1,268,000 Beginning balance of accounts payable $ 563,000 Purchases (from above) 1,268,000 Total potential payments $1,831,000 Ending balance of accounts payable - 604,000 Cash payments for accounts payable $1,227,000 c. Issuance of common stock $ 81,000 Issuance of treasury stock 17,000 Total nonoperating cash receipts $ 98,000 d. Increase in land $ 150,000 Increase in plant and equipment 18,000 Total payments for noncurrent assets $ 168,00