Question

In: Accounting

T. P. Jarmon Company Balance Sheet for 12/31/2014 and 12/31/2015 Assets 2014 2015 Cash $15,000 $14,000...

T. P. Jarmon Company Balance Sheet for 12/31/2014 and 12/31/2015

Assets

2014

2015

Cash

$15,000

$14,000

Marketable securities

6,000

6,200

Accounts receivable

42,000

33,000

Inventory

51,000

83,300

Prepaid rent

1,200

1,100

Total current assets

$115,200

$137,600

Net plant and equipment

$286,000

$270,200

Total assets

$401,200

$407,800

Liabilities and Equity

2014

2015

Accounts payable

$48,000

$57,000

Accruals

6,000

5,200

Notes payable

15,000

12,900

Total current liabilities

$69,000

$75,100

Long-term debt

$160,000

$150,500

Common stockholders' equity

$172,200

$182,200

Total liabilities and equity

$401,200

$407,800

T. P. Jarmon Company Income Statement for Years Ended 12/31/2015

Sales

$599,800

Less cost of goods sold

459,900

Gross profit

$139,900

Operating and interest expenses

General and administrative

$30,200

Interest

10,000

Depreciation

30,200

Total operating and interest expenses

$70,400

Earnings before taxes

$69,500

Taxes

27,800

Net income available to common stockholders

$41,700

Cash dividends

31,700

Change in retained earnings

$10,000

a. How much is the firm's net working capital and what is the debt ratio?

b. Complete a statement of cash flows for the period.

c. Compute the changes in the balance sheets from 2014 to 2015.

Solutions

Expert Solution

a. Net working capital = current assets - current liabilities

For 2014 firm's net working capital = 115200-69000

=$46200.

For 2015 firm's net working capital = 137600-75100

= $62500

Debt ratio = total liabilities/total assets.

For 2014 firm's debt ratio = 229000/401200 = 0.57

For 2015 firm's debt ratio = 225600/407800

= 0.55

b. Cash flow statement for 2015

A. Cash flow from operating activities
Net income after tax 41700

Adj. For :
Add : depriciation 30200
Interest 10000
Decrease in accounts receivable 9000
Decrease in prepaid rent 100
Increase in accounts payable 9000
Less : increase in inventory (32300)
Decrease in accruals (800)
Decrease in notes payable (2100)
Net cash proceeds from operating activities (A) 64800
B . Cash flow from investing activities
Purchase of plant and equipment (working note) (14400)
Cash used in investing activities (B) (14400)
C . Cash flow from financing activities
Repayment of Deb. (9500)
Payment of int. (10000)
Payment of div. (31700)
Cash used in financing activities (C) (51200)
Net cash flow during the year (A+B+C) (800)
Beginning Cash and cash equivalent (15000+6000) 21000
Ending Cash and cash equivalent (14000+6200) 20200

Working g note :-

Plant account

To Bal b/d (beginning bal. On 2015) 286000 by dep. 30200
To cash (bal. Fig.) 14400 By bal c/d (ending bal) 270200

C. Changes in the balance sheet from the period 2014 to 2015 are as follows

Assets
2014 2015 percentage change
Cash 15000 14000 (6.67%)
Marketable securities 6000 6200 3.33%
Accounts receivable 42000 33000 (21.43%)
Inventory 51000 83300 63.33%
Prepaid rent 1200 1100 (8.33%)
Total current assets 115200 137600 19.44%
Net plant and equipment 286000 270200 (5.52%)
Total assets 401200 407800 1.65%
Liabilities & equities
2014 2015 percentage change
Accounts payable 48000 57000 18.75%
Accruals 6000 5200 (13.33%)
Notes payable 15000 12900 (14%)
Total current liabilities 69000 75100 8.84%
Long term debt 160000 150500 (5.94%)
Common stockholder equity 172200 182200 5.81%
Total liabilities & equity 401200 407800 1.65%

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000...
T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000 Marketable securities 6,000 6,200 Accounts receivable 42,000 33,000 Inventory 51,000 84,000 Prepaid rent 1,200 1,100 Total current assets $115,200 $138,300 Net plant and equipment $286,000 $270,000 Total assets $401,200 $408,300 Liabilities and Equity 2017 2018 Accounts payable $48,000 $57,000 Accruals 6,000 5,000 Notes payable 15,000 13,000 Total current liabilities $69,000 $75,000 Long-term debt $160,000 $150,000 Common stockholders' equity $172,200 $183,300 Total liabilities and equity...
balance sheet 12/31/2014 12/31/2015 Assets Current Assets Cash in bank $     57,000 $    65,000 Accounts receivable         75,00
balance sheet 12/31/2014 12/31/2015 Assets Current Assets Cash in bank $     57,000 $    65,000 Accounts receivable         75,000        82,000 Inventory         66,000        75,000 Prepaid expenses           6,000          8,000 Total Current Assets $   204,000 $   230,000 Fixed Assets Machinery & equipment $     25,200 $    18,000 Total Fixed Assets (net of depreciation) $     25,200 $    18,000 TOTAL Assets $   229,200 $   248,000 Liabilities and Equity Current Liabilities Accounts payable $     89,000 $    90,000 Total Current Liabilities $     89,000 $    90,000 Long-term Debt Bank loans payable $     62,000 $    50,000 Total Long-term Debt $     62,000 $    50,000 Total Liabilities $   151,000 $   140,000 Owners' Equity         78,200...
Devin E Corporation Balance Sheet As of December 31, 2015 2014 Assets: Cash & Cash Equivalents...
Devin E Corporation Balance Sheet As of December 31, 2015 2014 Assets: Cash & Cash Equivalents $41,900 $25,000 Accounts Receivable 24,000 6,250 Inventory 30,000 36,000      Current Assets 95,900 67,250 Land 25,000 10,000 Equipment 42,000 38,500 Less: Accumulated Depreciation (14,000) (7,000) 53,000 41,500 Total Assets 148,900 108,750 Liabilities: Accounts Payable 17,500 22,500 Accrued Salaries Payable 5,500 8,000 Rent Expense Payable 2,200 1,000 Income Tax Payable 6,900 4,000 Current Liabilities 32,100 35,500 Long-term notes payable 50,000 30,000 Total Liabilities 82,100 65,500...
Balance Sheet 2014 2015 2016 Assets Cash $9,000 $7,282 $14,000 Short-term investments 48,000 20,000 71,632 Accounts...
Balance Sheet 2014 2015 2016 Assets Cash $9,000 $7,282 $14,000 Short-term investments 48,000 20,000 71,632 Accounts receivable 351,200 632,160 878,000 Inventories 751,200 1,287,360 1,716,480     Total current assets $1,124,000 $1,946,802 $2,680,112 Gross fixed assets 491,000 1,202,950 1,220,000 Less: Accumulated depreciation 146,200 263,160 383,160      Net fixed assets $344,800 $39,790 $36,840 Total assets $1,468,800 $2,886,592 $,516,952 2011 2012 2013 Liabilities & Equity Accounts payable $145,600 $324,000 $359,800 Notes payable 200,000 720,000 300,000 Accruals 136,000 284,960 380,000       Total current liabilities $481,600 $1,328,960...
Balance​ Sheet: ​3/31/2016 ​12/31/2015 ​9/30/2015 ​6/30/2015 Assets Current Assets Cash and cash equivalents 293 300 255...
Balance​ Sheet: ​3/31/2016 ​12/31/2015 ​9/30/2015 ​6/30/2015 Assets Current Assets Cash and cash equivalents 293 300 255 232 Net receivables 401 362 385 460 Inventory 374 342 437 306 Other current assets 60 43 53 45 Total Current Assets ​1,128 ​1,047 ​1,130 ​1,043 ​Long-term investments 128 97 long dash— 200 ​Property, plant, and equipment 979 991 995 ​1,052 Goodwill 744 748 736 742 Other assets 777 830830 903903 797 Total Assets ​3,756 3 comma 7133,713 3 comma 7643,764 ​3,834 Liabilities Current...
ARID Company Income Statement FYE 12/31 Assets 2015 2014 Current assets Cash $       45,000 $       23,000...
ARID Company Income Statement FYE 12/31 Assets 2015 2014 Current assets Cash $       45,000 $       23,000 Short-term investments 36,000 18,000 Accounts receivable 94,000 89,000 Inventory 82,000 68,000 Total current assets 257,000 198,000 Plant assets (net) 550,000 560,000 Total assets $807,000 $758,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable 140,000 120,000 Income taxes payable 35,000 38,000 Total current liabilities 175,000 158,000 Long-term liabilities Bonds payable 160,000 170,000 Total liabilities 335,000 328,000 Stockholders' equity Common stock ($5 par) 195,000 185,000 Retained...
Carolina Products Balance Sheet 12/31/2016 & 12/31/2015 Horizontal Analysis Assets 2016 2015 $ Change % Change...
Carolina Products Balance Sheet 12/31/2016 & 12/31/2015 Horizontal Analysis Assets 2016 2015 $ Change % Change Cash $108,886 $107,455 Accounts Receivable $105,650 $112,420 Prepaid Insurance $1,100 $1,000 Inventory $205,000 $189,350 Prepaid Expenses $1,200 $1,050 Land $80,000 $80,000 Office Equipment $10,500 $10,500 Accum Depr-Office Equip ($2,000) ($2,200) Total Assets $510,336 $501,590 Liabilities Accounts Payable $72,090 $70,005 Sales Tax Payable $3,500 $3,450 Interest Payable $860 $825 Total Liabilities $76,450 $74,280 Stockholders Equity Common Stock $60,000 $58,000 Paid in Capital in Excess of...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable,...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill 20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par 20,000 Additional paid-in capital 280,000 Retained earnings 1,378,000 Total shareholders' equity 1,678,000 Total liabilities and shareholders' equity 1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable,...
The Balance Sheet of the Illini as of 12/31/20X0: Assets Current Assets: Cash 1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill 20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par 20,000 Additional paid-in capital 280,000 Retained earnings 1,378,000 Total shareholders' equity 1,678,000 Total liabilities and shareholders' equity 1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked...
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net...
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net               18,000 Inventory               50,000 Total current assets         1,568,000 Equipment               90,000 Goodwill               20,000 Total assets $1,678,000 Liabilities and shareholders' equity Shareholders' equity: Common stock, 20,000 shares outstanding, $1 par $20,000 Additional paid-in capital            280,000 Retained earnings         1,378,000 Total shareholders' equity         1,678,000 Total liabilities and shareholders' equity $1,678,000 Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT