经济环境下的财务会计课后习题答案(共26页).doc

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1、精选优质文档-倾情为你奉上CHAPTER 2THE FINANCIAL STATEMENTSBRIEF EXERCISESBE21200020022003Beginning EndingRetained200320032003RetainedEarnings+RevenuesExpensesDividends=Earnings$13.5+$27$23.4X=$16.0X=$1.12003 Dividends as a percentage of 2003 net income: 2003 Dividends =$ 1.1 = 30.6%2003 Net income ($27-$23.4) $

2、 3.6 BE22(1) Current Liabilities financed $18 billion of the assets. Current Liabilities divided by Total assets = $18/$53 = 34.0%(2) Long-term debt financed $27 billion of the assets. Long-term debt divided by total assets = $27/$53 = 50.9%(3) Stockholders equity financed $8 billion of the assets.S

3、tockholders equity divided by total assets = $8/$53 = 15.1%BE23(a) Working capital = current assets current liabilities. Boeings current assets total $17 billion, less $18 billion of current liabilities, gives the company negative working capital of $1 billion. Another measure of solvency would be t

4、he current ratio. The current ratio is current assets divided by current liabilities or $17 billion divided by $18 billion = 0.94. Both measures indicate that Boeing appears to have a solvency problem. Current assets are not sufficient to cover current liabilities. Under existing circumstances the C

5、ompany will have to look to other sources to pay its current obligations.(b) No, Boeing has $9.1 billion of liquid assets (cash, short term investments, and accounts receivable) but it has $18 billion of current liabilities.(c) Boeing would be more solvent if accounts receivable were $5.3 billion an

6、d inventory was $4.5 billion. Accounts receivable are closer to cash than inventory. This means that accounts receivable are expected to be converted to cash in a shorter period of time than inventory.BE2-4 2003 2002 2001Net cash flow from operating activities$13,517$15,210$ 14,805Net cash flow from

7、 investing activities(3,105) (3,328) (8,387)Net cash flow from financing activities (9,173)(9,018) (6,358)Net change in cash$ 1,239 $ 2,864$ 60Cash at beginning of period3,567 703 643Cash at end of period.$ 4,806 $ 3,567 $ 703SBC Communications cash management activities over the three-year period o

8、f 2003, 2002, and 2001 appear to be extremely good. They are generating significant amounts of cash flow from operating activities. SBC Communications is then able to reinvest substantial amounts in its asset base. At the same time SBC Communications is also able to fund its financing activities fro

9、m its operating cash flow. The large amount of funds being used in investing activities indicates that SBC Communications is growing its business.EXERCISESE21(1)Financing, Balance sheet, Stockholders Equity(5)Financing, Balance sheet(2)Operating, Balance sheet, Income statement(6)Financing, S. E., B

10、al. sheet(3)Operating, Income statement, Balance sheet(7)Investing, Balance sheet(4)Investing, Balance sheet(8)Operating, Balance sheetE221.Financing, Balance sheet2.Operating, Balance sheet3.Operating, Income statement, Balance sheet4.Operating, Income statement, Balance sheet5.Investing, Balance s

11、heet6.Investing, Balance sheet, Income statement7.Financing, Balance sheet8. Operating, Balance sheetE23a.Balance sheetg.Balance sheetm.Balance sheetb.Income statementh.Balance sheetn.Balance sheetc.Balance sheeti.Balance sheeto.Balance sheetd.Income statementj.Balance sheetp.Income statemente.Balan

12、ce sheetk.Income statementq.Balance sheetf.Income statementl.Income statementr.Balance sheetE24200120012001Beginning EndingRetained200120012001RetainedEarnings+RevenuesExpensesDividends=Earnings$1.2+$3.9$3.5X=$1.3X=$.32002* 20022002BeginningEndingRetained200220022002RetainedEarnings+RevenuesExpenses

13、Dividends=Earnings$1.3+$4.1X$.3=$1.4X=$3.7200320032003BeginningEndingRetained200320032003RetainedEarnings+RevenuesExpensesDividends=EarningsX+$4.43.9$.3=$1.6X=$1.4*you must calculate the 2003 equation before you can calculate the 2002 equation200320022001Sales growth ($)$0.3 $0.2N/ASales growth (%)7

14、.3%5.1%N/AProfits ($)$.5 $.4$.4Profits (% of sales)11.4%9.8%10.3%Dividends (% of net income)60.0%75.0%75.0%The company was able to grow sales successfully in 2002 but at the expense of profits. Then in 2003 the company was again successful at growing sales but also managed to increase its profits. D

15、ue to the increased profitability, the constant dividend payments were less as a percentage of net income in 2003. _E2520012001 Ending Retained Earnings2001 Beginning Retained Earningsor=+Revenues for 20012002 Beginning Retained EarningsExpenses for 2001Dividends for 2001($523)=($499)+$1,383X$0X=$1,

16、407Expenses for 2001 are $1,407.2002($758)=($523)+$1,522$1,608XX=$149Dividends declared for 2002 are $149.2003($596)=($758)+X$1,550$5X=$1,717Revenue for 2003 is $1,717. 2001 2002 2003Salesgrowth (%)N/A 10.0% 12.8%Profits($24)($86)$167Profits as a percentage of sales(1.7%)(5.7%) 9.7%Dividends$0$149$5

17、Dividends as a percentage of net incomeN/AN/A3.0%The advertising agency had modest sales growth from 2001 to 2003. However, from 2002 to 2003, the Company was able to go from losses to a profit. Even though the Company had a loss in 2002 the Company paid a healthy dividend. Then in 2003, when the Co

18、mpany showed a profit, it virtually eliminated the dividend. There is reason to be optimistic going forward. In 2003 the Company was able to show a nice growth in its sales while at the same time showing a reduction in its expenses. E26Solvency primarily indicates a companys ability to meet its debt

19、 payments as they come due. Current liabilities are obligations that will be settled within one year or the companys operating cycle, whichever is longer, through the use of current assets or the creation of new current liabilities. Current assets are those assets that will be consumed or converted

20、to cash within one year or the companys operating cycle, whichever is longer. Consequently, comparing current assets to current liabilities provides an indication of a companys ability to meet its short-term debts. In this case, current assets were 3.16 and 2.96 times greater than current liabilitie

21、s as of December 31, 2003 and December 31, 2002, respectively.Although comparing current assets to current liabilities provides a measure of a companys solvency, this measure is not perfect. A true test of a companys short-term solvency would be to compare the cash value of its current assets to the

22、 cash value of its current liabilities. For current liabilities, the book value is usually a good approximation of the cash value, since a company cannot, from a legal viewpoint, unilaterally change its debts. The situation is different for current assets though. The book value may or may not bear a

23、ny relation to the cash value. Consequently, comparing the book value of current assets to current liabilities may not give an accurate measure of a companys solvency.E27 Method 1 Method 2Working capital as of 12/31/2003($680 $215)$ 465$465Impact of method on current assets 00Impact of method on cur

24、rent liabilities(300)0New working capital as of January 2004$165$465It seems that only method 2 would be acceptable to the company in terms of maintaining the working capital covenant. E28 2003 2002 2001Beginning cash balance$9,484$ Y*$4,234Net cash flow from operating activities5,240 X6,392Net cash

25、 flow from investing activities(5,436) (807) XNet cash flow from financing activitiesX(1,169)1,250 Ending cash balance$3,925$9,484$4,873X equals$(5,363)$6,587$ (7,003)*Beginning cash balance for 2002 = Ending cash balance for 2001.Cisco Systems cash management activities over the three-year period o

26、f 2001, 2002, and 2003 appear to be strong. The Company is generating a significant amount of net cash flow from operations each year and then is investing in its business. In 2003 Ciscos cash balances decreased due to heavy investing and financing activities. The Company either repaid debt or retur

27、ned cash to its shareholders. E29 2003 2002 2001Beginning cash balance$ Z*$2,280$XNet cash flow from operating activities1,3365201,485Net cash flow from investing activitiesX (603) (998) Net cash flow from financing activities(48)X1,270Ending cash balance$1,865$ 1,815$Y*X equals$(1,238)$ (382)$523*2

28、002 Beginning balance = 2001 Ending balance*2003 Beginning balance = 2002 Ending balance.Southwest Airlines cash management activities appear to be very good for the years 2001, 2002 and 2003. The company is consistently generating a net cash inflow from its operating activities. A look at its inves

29、ting activities reveals that the company is expanding its asset base, probably for growth. During 2002 and 2003, the company apparently had a cash outflow due to financing activities, possibly in paying off debt or returning cash to shareholders. Overall, Southwest Airlines seems to be doing reasona

30、bly well in its cash management activities.E210Lana & SonStatement of Cash FlowsFor the Year Ended Cash flows from operating activities:Cash collection from services provided$4,000Cash payment for expenses (3,000)Net cash increase (decrease) from operating activities$1,000Cash flows from investing a

31、ctivities:Purchase of machinery$(3,000)Net cash increase (decrease) from investing activities(3,000)Cash flows from financing activities:Proceeds from stockholders contributions$7,000Payment of dividends (1,500)Net cash increase (decrease) from financing activities5,500Increase (decrease) in cash ba

32、lance$3,500Beginning cash balance13,000Ending cash balance$16,500Based on just one years statement of cash flows it is difficult to comment adequately on Lana & Sons cash management activities. However, one can observe that most of the cash during the year was generated as a result of issuing equity

33、. The company seems to be investing in its asset base. That will certainly help it grow in the future. Cash flows from operations is positive, which certainly is a good sign.E211Emory Inc.Statement of Cash FlowsFor the Year Ended Cash flows from operating activities:Cash collection from services pro

34、vided$40,000Cash payment for expenses (23,000)Net cash increase (decrease) from operating activities$17,000Cash flows from investing activities:Purchase of equipment$(23,000)Net cash increase (decrease) from investing activities(23,000)Cash flows from financing activities:Proceeds from the bank loan

35、$30,000Payment of dividends (24,000)Net cash increase (decrease) from financing activities6,000Increase (decrease) in cash balance$0Beginning cash balance25,000Ending cash balance$25,000Based on just one years statement of cash flows, it is difficult to comment adequately on Emorys cash management a

36、ctivities. However, it seems that the company is generating a substantial portion of its cash flows from operating activities. The company is taking some loans to finance its asset base, which would be helpful in the future. Return on total assets and return on equity would probably increase. E212Ge

37、orges BusinessIncome StatementFor the Year Ended Lease revenue$3,000Expenses2,500Net income$500Georges BusinessStatement of Stockholders EquityFor the Year Ended Contributed Retained Capital EarningsBeginning Balance $ 0 $ 0Stock Issue 6,000Net Income 500Cash Dividends _ (800)Ending Balance $6,000 $

38、 (300)E212ConcludedGeorges BusinessBalance SheetAs of AssetsCash$2,700Land8,000Total assets$10,700Liabilities & Stockholders EquityNote payable$5,000Contributed capital6,000Retained earnings(300)Total liabilities & stockholders equity$10,700Georges BusinessStatement of Cash FlowsFor the Year Ended C

39、ash flows from operating activities:Cash collections from customers$3,000Cash payments for expenses(2,500)Net cash flow from operating activities$500Cash flows from investing activities:Purchase of land$(8,000)Net cash flow from investing activities(8,000)Cash flows from financing activities:Proceed

40、s from equity investor$6,000Proceeds from borrowing5,000Cash payments for dividends(800)Net cash flow from financing activities10,200Increase in cash$2,700Beginning cash balance0Ending cash balance$2,700Upon examining Georges financial statements the bank would certainly be concerned because George

41、paid out more in dividends than the net income he realized during the year. Georges statement of retained earnings shows a negative balance, which means that the payment to equity investors which was disguised as return on capital was in fact a return of capital. Generally, dividend payments cannot exceed the Retained Earnings balance.E213Marys BusinessIncome StatementFor the Year Ended Lease revenue$12,000Expenses14,000Net income$(2,000)Marys BusinessStatement of Stockholders EquityFor the Year Ended Contributed Retained Capital EarningsBeginning Balance