[dedo33]

 Problem 1:
The following balances were taken from the books of Samsung Corp. on December 31, 2011.
Interest revenue $ 86,000 Accumulated depreciation—building $ 28,000
Cash 51,000 Notes receivable 155,000
Net Sales 1,185,000 Selling expenses 194,000
Accounts receivable 150,000 Accounts payable 170,000
Prepaid insurance 20,000 Bonds payable 100,000
Sales returns and allowances -0- Administrative and general expenses 97,000
Allowance for doubtful accounts 7,000 Accrued liabilities 32,000
Sales discounts -0- Interest expense 60,000
Land 100,000 Notes payable 100,000
Equipment 200,000 Loss from earthquake damage 150,000
Building 140,000 Common stock 500,000
Cost of goods sold 621,000 Retained earnings 21,000
Accumulated depreciation—equipment 40,000
If Samsung Corp. has a 34% federal income tax rate on all tax related items


Instructions
 Prepare a multiple-step income statement for 2011 for Samsung Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology).
 Calculate Earnings per Share (EPS), if Samsung Corporation has 100,000 shares of common stock outstanding



Problem 2:
Presented below is a condensed version of the comparative balance sheets for Adobe Corporation for the last two years at December 31.

2011 2010
Cash $45,000 $ 13,000
Accounts receivable 91,000 88,000
Equipment 39,000 22,000
Less: Accumulated depreciation (17,000) (11,000)
Accounts Payable 20,000 15,000
Common stock 100,000 80,000
Retained earnings 38,000 17,000
Additional information:
Net income of $44,000 was reported, and dividends of $23,000 were paid in 2011. New equipment was purchased and none was sold.
Instructions
1) Prepare a statement of cash flows for 2011 for Adobe Corporation.
2) Determine Adobe Corporation’s Financial Liquidty and free cash flow

[baddfrog0221]

If you post an attempted answer, I can tell you if it's correct.

[paraclete]

You learn quickly

[dedo33]

Samsung corp
income statement
for year ended December 31.2011
sales 1.185.000
cost of good sold 621.000
gross profit 564.000
operating expanse
Selling expenses 194,000
Administrative and general expenses 97,000
total operating expanses 291.000
Income from operations 273.000
Other revenue and (expense):
Interest revenue 86,000
Interest expense 60,000
Total other revenue and expense 26.000
Income before income taxes 299.000
income taxes 101660
Income before extraordinary item 197340
Extraordinary item, less income tax of 51000 99000
Net income 98340


Calculating Earning Per Share (EPS):=Net Income – Preferred Dividends/Common Shares Outstanding
98340-0/100,000=.9834

is that right ?

[dedo33]

Adobe Corporation
statement of cash flow
for year ended December 31.2011

Cash flows from operating activities
net income 44.000 Adjustments to reconcile net income to net cash
provided by operating activities

depreciation expenses 6000
increase in account receivable (3000)
increase in account payable 5000
Net cash provided by operating activities 52000

Cash flows from investing activities
purchase of equipment (17.000)
Net cash used by investing activities (17.000)
Cash flows from financing activities
payment of cash dividends (23.000)
Net cash provided (used) by financing activities (23.000)
Net increase in cash 32.000
Cash at beginning of year 13,000
Cash at end of year 45.000


Current Cash Debt Coverage ratio=Net Cash Provided by Operating Activities/Average Current Liabilities
52.000/(20.000+15.000/2)=1.8


Free Cash Flow=Net cash provided by operating activities-Capital expenditures (purchase of equipment)-Dividends=52000-17.000-23.000=12.000

[baddfrog0221]

Looks like the right answer to me. Make sure to format correctly, i.e commas in the correct places, dollar signs on the first amount in a column and before double underlines. I suggest using a spreadsheet to create your official statements.

Good Job.

[dedo33]

Thanks for the help :D