財(cái)務(wù)報(bào)表分析-第10章習(xí)題答案

1、Chapter 10PROBLEMSStateme nt of Cash FlowsPROBLEM 10-1Cash Flows ClassificationEffect on CashDataOperatingActivityInvestingActivityFinancingActivityIncreaseDecreaseNon-cash Transactiona. Net LossXXb. In crease in inven toryXXc. Decrease in receivablesXXd. In crease in prepaid in sura neeXe. Issua ne

2、e of com mon stockXXf. Acquisiti on of la nd using no tes payableXg. Purchase of la nd using cashXXh. Paid cash divide ndXXi. Payme nt of in come taxesXXj. Retireme nt of bonds using cashXXk. Sale of equipme nt forXXcashPROBLEM 10-2Cash Flows ClassificationEffect on CashDataa. Net incomeb. Paid cash

3、 dividendc. Increase in receivablesd. Retirement of debt, paying cashe. Purchase of treasury stockf. Purchase of equipmentg. Sale of equipmenth. Decrease in inventoryi. Acquisition of land using common stockj. Retired bonds using common stockOperatingInvestingActivityActivityFinancingActivityIncreas

4、e DecreaseNon-cashTrans-actionXXXXXXXXXXk. Decrease in accounts payablePROBLEM 10-3a.BBB Compa nyStateme nt of Cash FlowsFor the Year Ended December 31,2005Cash flows from operating activities:Net in come$ 500Non cash expe nses, reve nu es, losses, and gains in cluded in in come:Depreciati on$2,800G

5、ain on sale of land(800)Decrease in acco unts receivable400Decrease in inven tory500In crease in acco unts payable800In crease in wages payable50Decrease in taxes payable(1,000)2,750Net cash flow from operat ing activities3,250Cash flows from investing activities:Land was sold for1,800Equipme nt was

6、 purchased for(3,500)Net cash used for inv esti ng activities(1,700)Cash flows from financing activities:Divide nds declared and paid(4,350)Com mon stock was sold for3,800Net cash used for financing activities(550)Net in crease in cash and marketable securities$ 1,000b. Net cash flow from operati ng

7、 activities was substa ntiallymore tha n the net in come. Cash divide nds were greater tha nthe net cash flow from operat ing activities.The cash from issu ing the com mon stock was sufficie nt to cover the net cash used for inv esti ng activities, in crease the cash and marketable securities acco u

8、n ts, and partially cover the large cash divide nd.The fact that a Ion g-term source of funds (com mon stock) was used to cover part of the cash divide nds is a n egative observati on. The large cash divide nd in relati on to net cash flow from operat ing activities would also be con sidered a n ega

9、tive situati on.PROBLEM 10-4Frish Compa nya.Schedule of Change From Accrual ToCash Basis In come Stateme ntAccrual Basis BasisAdjustme nts Add(Subtract) CashNet sales $640,000In crease in acco untsreceivable ($27,000) $613,000Less expe nses:Cost of goodssold360,000In crease in acco untspayable(15,00

10、0)In crease in inventories35,000Depreciation expe nse (15,000)365,000Selli ng and admi nistrative expe nse43,000Decrease in prepaidexpe nses(1,000)In crease in accruedliabilities(3,000)Depreciation expe nse (5,000)34,000Other expe nse 2,000Amortizati on ofgoodwill(3,000)Amortizati on of bondpremium1

11、,000-0-In come beforein cometaxes235,000In come tax92,000Decrease in in come taxes payable214,00010,000 102,000Net in come $143,000$112,000b. (1) Direct ApproachReceipts from customers$613,000Payme nts to suppliersSelli ng and admi nistrative expe nsesIn come taxes paidCash flows from operating acti

12、vities(365,000)(34,000)102,000(2) IndirectApproachNet in come$143,000Add (deduct) items not affect ing cashDepreciati on20,000Amortizati on of goodwill3,000Amortizati on of bond premium(1,000)In crease in acco unts receivable(27,000)In crease in acco unts payable15,000In crease in inven tories(35,00

13、0)Decrease in prepaid expe nses1,000In crease in accrued liabilities3,000Decrease in in come taxes payable(10,000)Cash flow from operat ing activities$ 112,00PROBLEM 10-5a. The in come stateme nt and other selected data for the Boyer Compa ny is show n below.Boyer Compa nySchedule of Change From Acc

14、rual ToCash Basis In come Stateme ntAdd(Subtract)Cash BasisAccrual BasisAdjustme ntsSales$19,000In crease in receivables(400)$18,600Less operat ing expe nses:2,300Depreciati on expe nse(2,300)-0-Depreciati onIn crease in inven tories800Other operat ingIn crease in accou ntsexpenses12,000payable(500)

15、12,300Operati ng in come4,7006,300Loss on sale of la nd1,500Loss on sale of la nd(1,500)-0-In come before taxexpense3,200Decrease in in come6,300Tax expe nse1,000taxes payable4001,400Net in come$2,200$4,900b. (1) Direct ApproachReceipts from customers Payme nts to suppliers In come taxes paid Cash f

16、low from operating activities(2) In direct ApproachNet in comeAdd (deduct) items not affect ing cash:Depreciati onIn crease in receivablesIn crease in inven toriesIn crease in acco unts payableLoss on sale of landDecrease in in come taxes payable Cash flow from operating activitiesPROBLEM 10-6$18,60

17、0(12,300)(1,400)$ 4,900$ 2,200$2,300(400)(800)5001,500(400)2,700$ 4,900a.Samps on Compa nyStateme nt of Cash FlowsFor the Year En ded December 31,2005Net cash flow from operating activities:Net in comeNon cash expe nses, reve nu es, losses, and gains in cluded in in come:Depreciati on expe nseIn cre

18、ase in net receivablesIn crease in inven toryIn crease in acco unts payableDecrease in accrued liabilitiesNet cash outflow from operati ng activities$19,000$10,000(7,000)(13,000)5,000(17,000)(3,000)Cash flows from investing activities: Pla nt assets in creaseCash flows from financing activities: Mor

19、tgage payable in crease Com mon stock in creaseDivide nds paidNet cash flows from financing activities(15,000)$11,0006,000(21,000)$(22,000)Net decrease in cashb.Samps on Compa nyStateme nt of Cash Flows$138,000For the Year En ded December 31,2005Cash flow from customers($145,000 - $7,000)Cash outflo

20、w for other expe nses(6,000)Tax payme nts(12,000)Net cash outflow from operat ing activitiesCash flows from in vest ing activities: Plant assets in crease(15,000)Cash flows from financing activities: Mortgage payable in crease Com mon stock in crease Divide nds paidNet cash outflow from financing ac

21、tivities$11,0006,000 (21,000)Net decrease in cashCash payme nts to suppliers($108,000 - $10,000 + $13,000 - $5,000 +$17,000)(123,000)($ 3,000)(4,000)$(22,000)c. All major segme nts of cash flows were n egative. Net cash outflow from operat ing activities was n egative by $3,000, and yet divide nds w

22、ere paid in the amount of $21,000. Also, the compa ny had a n egative cash flow from in vesti ng activities. These n egative cash flows were partially made up for by issu ing a mortgage payable ($11,000) and com mon stock ($6,000).PROBLEM 10-7a.Comme ntThe usual guideline for the current ratio is tw

23、o to one. Arrowbell Company had a 1.14 to 1 ratio in 2004 and a .85 to 1 ratio in 2005. The usual guideline for the acid-test ratio is one to one. Arrowbell Compa ny had a .68 to 1 ratio in 2004 and a .49 to 1 ratio in 2005.The cash ratio dropped from .19 in 2004 to .12 in 2005. The worki ng capital

24、 in 2004 was $197,958, and in 2005 it had declined to a negative $319,988.The short-term debt positi on appears to be very poor.Computati on of RatiosCurre nt Ratio = Curre nt AssetsCurre nt Liabilities2005$1,755,303 = .85$2,075,2912004$1,599,193 = 1.14$1,401,235Cash Equivale nts & Net Receivabl

25、es &Acid-Test Ratio = Marketable SecuritiesCurre n2005$250,480 + $760,950 = .49 $2,075,2912004$260,155 + $690,550 = .68$1,401,235Cash Ratio =Cash Equivale nts & Marketable Securities Curre nt Liabilities2005$250,480 = .12 $2,075,2912004$260,155 = .19 $1,401,235Operati ng Cash Flow/Curre ntOp

26、erati ng Cash FlowMaturities of Lon g-Term Debt = Curre nt Maturities of Lon g-Term and Curre nt Notes PayableDebt and Curre nt Notes Payable20052004$429,491 = 46.93%$915,180$177,658 = 32.29%$550,155b. Suppliers will be concerned that Arrowbell Compa ny will not be able to pay its creditors and, if

27、payment is made, it will be later tha n the credit terms. The short-term creditors are financing the expa nsion program.c. The debt ratio has in creased in 2005 to .61 from .58 in 2004. The debt/equity ratio has in creased in 2005 to 1.55 from 1.36 in 2004. (A similar in crease in the debt to tan gi

28、ble net worth as the in crease in the debt/equity ratio.) There was an improveme nt in the operat ing cash flow/total debt, but this ratio remains very low.This in dicates that a substa ntial amount of funds are coming from creditors. In gen eral the depe ndance on creditors worse ned in 2005.Not en

29、o ugh in formatio n is available to compute the times interest earned, but we can estimate this to be between 2 and 3, based on the earnings and the debt. We would like to see the times interest earned to be higher than this amount.The review of the Stateme nt of Cash Flows in dicates that Ion g-ter

30、m creditors are going to be concerned by the use of debt to expa nd property, pla nt, and equipme nt. They also are going to be concerned by the payme nt of a divide nd while the work ing capital is in poor con diti on.Debt Ratio =Total DebtTotal Assets2005$2,625,291$4,316,5982004$2,176,894 = .58$3,

31、776,711Debt/Equity =Total DebtStockholde rs' Equity2005$2,625,291$1,691,3072004$2,176,8941. 55$1,599,8171. 36Debt to Tan gible Net Worth =Total Liabilitie sShareholde rs' Equity - IntangibleAssets20052004$2,625,291$1,691,307- 0155. 22%$2,176,894$1,599,817- 0136. 07%Operati ng Cash Flow/Total

32、 Debt =OperatingCash FlowTotal Debt2005$429,491$2,625,29116. 36%2004$177,658$2,176,8948. 16%d. A ban ker would be especially concerned about the short-term debt situati on. This could lead to ban kruptcy, eve n though the firm is profitable. A ban ker would be particularly concerned why man ageme nt

33、 had used short-term credit to finance Ion g-term expa nsion.e. Man ageme nt should con sider the follow ing or a comb in ati on of the followi ng:1. Disc on ti nue the expa nsion program at this time and get the short-term debt situation in order. Tighten control of acco unts receivable and inven t

34、ory, along with using funds from operati ons to reduce short-term debt.2. Issue additi onal stock to improve the short-term liquidity problem and the Iong-term debt situation. Because of the poor record on profitability and the way that man ageme nt has finan ced past expa nsion, additi onal stock w

35、ill probably not be well-accepted in the market place at this time.PROBLEM 10-8a. Bern ett Compa ny had a decrease in cash of $23,000, althoughnet cash flow from operating activities was $21,000. Net cash provided by financing activities was $116,000, while net cash used by investing activities was

36、$160,000. The cash flows from operatio ns and financing activities were not sufficie nt to cover the very sig nifica nt net cash used by inv est ing activities.b. 1.2.Curre nt ratio:Current assets:CashAcco unts receivableInven toryPrepaid expe nseTotal curre nt assetsCurre nt liabilities:Acco unts p

37、ayableIn come taxes payable Accrued liabilitiesCurrent bonds payable Total current liabilities(A) $231,000 = 3.30(B) $ 70000Acid-test ratio:CashAcco unts receivable$ 5,00092,000130,0004,000$231,000 (A)$ 49,0005,0006,00010,000$ 70,000 (B)$ 5,00092,000$ 97,000 (A)70,000 (B)Total current liabilities(A)

38、 $97,000 = 1.39(B) $70,0003. Operati ng cash flow/curre nt maturities of Ion g-term debtand curre nt no tes payable:Operat ing cash flow (from part (a)$ 21,000 (A)Curre nt maturities of Ion g-termdebt and curre nt no tes payable$ 10,000(A) $21,000 = 2.10(B) $10,0004.Cash ratio:Cash$ 5,000 (A)Total c

39、urre nt liabilities$ 70,000 (B)(B)(A) $ 5,000 = 7.14%(B) $70,000c.1.Times in terest earn ed:In come before taxes$ 99,000Plus in terest expe nse11,000$110,000 (A)In terest expe nse(A) $110,000 = 10 times per year(B) $ 11,000$ 11,000 (B)2.Debt ratio:Total liabilities:Acco unts payable$ 49,000In come t

40、axes payable5,000Accrued liabilities6,000Bonds payable175,000Total liabilities$235,000 (A)Total assets(A) $235,00057. 18%(B) $411,000$411,000 (B)3.Operati ng cash flow/total debt:Operat ing cash flow (from part (a)$ 21,000 (A)Total debt (from part (d.2.)(A) $ 21,000 = 8.94%(B) $235,000$235,000 (B)d.

41、 1.Retur n on assets:Net in comeAverage assets($219,000 + $411,000) divided by 2 $315,000 (B)(A) $ 69,000 = 21.90%(B) $315,000$ 69,000 (A)2.Retur n on com mon equity:Net in comeAverage com mon equity($96,000 + $50,000 + $106,000 + $70,000)$ 69,000 (A)divided by 2(A) $ 69,000 = 42.86%(B) $161,000$161

42、,000 (B)e.Operati ng cash flow/cash divide nds:Operat ing cash flow (from part (a)$ 21,000 (A)Cash divide nds$ 49,000 (b)(A) $21,000 = .43(B) $4f. In gen eral, the liquidity ratios look very good except for the cash ratio. The cash ratio is approximately 7%.g. Overall, the debt positi on appears to

43、be good. Timesin terest earned is very good, and the debt ratio and cash flow/total debt are good.h. The profitability appears to be extremely good. Both the return on assets and return on com mon equity are very high.i. Operat ing cash flow/cash divide nds in dicates that operat ing cash flow was l

44、ess tha n half the cash divide nds.j. Alter natives appear to be as follows:1. Reduce the rate of expa nsion or possibly stop expa nsion at this time. This would reduce the n eed to in crease receivables and inven tory in the future and provide cash to pay acco unts payable.2. Issue additi on al l o

45、n g-term debt.3. Issue additi onal com mon stock.Possibly a comb in ati on of these alter natives should be con sidered. This compa ny is very profitable, has a good debt position, and in general a good liquidity position, except for the most immediate ability to pay its bills. This n eeds to be cor

46、rected or there is the possibility of ban kruptcy.The growth rate of this compa ny is very high. Immediate cash is n eeded to fund the growth.PROBLEM 10-9a. Zaro had substa ntially more net cash flow from operati ng activities tha n it had net in come. Major reas ons for this were depreciati on, dec

47、rease in acco unts receivable, and decrease in inven tory.The substa ntial cash flows from operat ing activities were used for investing activities and financing activities. Cash was particularly used for the financing activity of pay ing divide nds.b. 1.Curre nt Ratio:Current assets:CashAcco unts r

48、eceivable, netInven toryPrepaid expe nses$ 30,00075,00090,0003,000 $198,000 (A)Curre nt liabilities:Acco unts payable In come taxes payable Accrued liabilitiesCurrent porti on of bonds payable$ 25,5002,5005,00020,000$ 53,000 (B)(A) $198,000 = 3.74(B) $ 53,0002. Acid-Test Ratio:$ 30,00075,000$ 53,000

49、 (B)CashAcco unts receivable, netCurre nt liabilities(A) $105,000 = 1.98(B) $ 53,0003. Operati ng cash flow/curre nt maturities of Ion g-term debt: and curre nt no tes payable:$ 51,000 (A)$ 20,000(B)Operat ing cash flowCurre nt maturities of Ion g-term debt and curre nt no tes payable(A) $51,000 = 2

50、.55(B) $20,0004.Cash Ratio:Cash$ 30,000 (A)Curre nt liabilities$ 53,000 (B)(A) $30,000 = .57(B) $5c. 1.Times In terest Earned:In come before taxes Plus in terest expe nse$ 34,0008,000 (B)$ 42,000 (A)(A) $42,000 = 5.25 times per year(B) $ 8麗2. Debt Ratio:Total liabilities:Acco unts payable In come ta

51、xes payable Accrued liabilitiesBonds payable$ 25,5002,5005,00090,000$123,000 (A)Total assets(A) $123,000 = 48.62%(B) $2$253,000 (B)d. 1.Retur n on assets:$20,000 $20,000($253,000$274,0002$263,5007.59%2.Retur n on Com mon Equity:$20,000($85,000$54,000$85,000$45,000)2$20,000$134,50014.87%e. All liquid

52、ity ratios are very good.f. The debt positi on is good.g. Profitability is good.h. Substa ntial cash flow came from operat ing activities. A relatively small amount of funds were used for inv est ingactivities and pay ing dow n bon ds. This left substa ntial cash available.PROBLEM 10-10a.The Ladies

53、StoreStateme nt of Cash FlowsFor the Year Ended December 31,2005Cash flows from operat ing activities:Cash receipts from customers$150,000Cash receipts from in terest5,000Cash payme nts for mercha ndise(110,000)Cash payme nts for in terest(2,000)Cash payme nts for in come taxes(15,000)Net cash flow

54、from operating activitiesCash flows from in vest ing activities:Cash outflow for purchase of truck(20,000)Cash outflow for purchase of in vestme nt(80,000)Cash outflow for purchase of equipme nt(45,000)Net outflow for in vesti ng activitiesCash flows from financing activities:Cash in flow from sale of bonds100,000Cash inflow from issua nee of note payable40,000Cash in flow from financing activit