Download Clover Corporation Financial Analysis: Chapters 15 & 16 Extra Assignment Solutions - Prof. and more Assignments Management Accounting in PDF only on Docsity! COB 242 Susan Floyd Chapter 15-16 Extra Assignment Solution COB 242-MANAGERIAL ACCOUNTING EXTRA ASSIGNMENT –CHAPTERS 15 & 16 (2 Points) STUDENT’S NAME ______________________________ SECTION _____ ROW _____ Answer the questions on the back page pertaining to Clover Corporation for 2007. Round all answers one decimal place (if needed) or to the nearest cent, unless specified. Be sure to put negative amounts in parentheses . Clover Corporation Comparative Balance Sheets As of December 31, Assets 2007 2006 NOTES IN BLUE Cash .................................................................... $ 428 $ 416 12 Check Accounts receivable............................................. 1,568 1,580 (12) OA Inventory.............................................................. 962 893 69 OA Plant and equipment............................................ 7,931 7,195 736+364=1,100 IA Less accumulated depreciation............................ (3,202) (3,035) 167+88=255 OA Investments (Long-term) ..................................... 275 210 65+21=86 IA Total assets.......................................................... $ 7,962 $ 7,259 Liabilities & Stockholders’ Equity Accounts payable................................................. $ 682 $ 656 26 OA Accrued liabilities................................................. 775 834 (59) OA Bonds payable, 4%............................................... 420 400 20 FA Stockholders’ equity: Common stock, $20 Par (# of shares 176 and 142)........................................................ 3,520 2,840 680 FA Preferred stock, $100 Par, 7% ......................... 1,000 1,000 -- (No change) Retained earnings (Change=246 NI – 210 Div.)............................................................... 1,565 1,529 36 -- Total liabilities and equity.................................... $ 7,962 $ 7,259 Clover Corporation Income Statement For the Year Ended December 31, 2007 Sales........................................................................... $ 6,445 Cost of goods sold....................................................... 5,156 Gross margin............................................................... 1,289 Selling and administrative expenses........................... 858 Net operating income.................................................. 431 Plus: Gain of the sale of investments....................... 27 OA Less: Loss on the sale of equipment......................... 12 OA Less: Interest expense............................................. _36 Income before taxes................................................... 410 Income taxes (40%).................................................... 164 1 Net income.................................................................. $ 246 OA Other information: IA During 2007, Clover sold equipment for $264 cash, resulting in the $12 loss which is shown on the income statement. The equipment originally cost $364 and had accumulated depreciation of $88. During 2007, the company also sold long-term investments for $48 IA that cost $21, resulting in a $27 gain. The company declared and paid a cash dividend of $210. FA 1. What is the net cash provided by (used for) operating activities? $_______________ NI 246 Gain (27) Loss 12 AR 12 INV (69) Depr. 255 AP 26 AL (59) 396 Net Cash Provided By OA 2. What is the net cash provided by (used for) investing activities? $_______________ P&E-Additions(1,100) P&E-Proceeds 264 Invest.-Proceeds 48 INVEST. (86) (874) Net Cash Used For IA 3. What is the net cash provided by (used for) financing activities? $_______________ Div. (210) BP 20 CS 680 490 Net Cash Provided By FA Check: 2