The financial statements provide income statement, balance sheet, and cash flow statement information for The Hershey Company for the years 2011, 2010, and 2009. Key details include net sales increasing from $5.3 billion in 2009 to $6.1 billion in 2011, net income increasing from $436 million in 2009 to $629 million in 2011, and total assets increasing from $4.3 billion in 2010 to $4.4 billion in 2011. Cash flow from operating activities was $581 million in 2011.
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
Exercise 12-1Putnam Corporation had these transactions during 20.docx
1. Exercise 12-1
Putnam Corporation had these transactions during 2014.
Analyze the transactions and indicate whether each transaction
resulted in a cash flow from operating activities, investing
activities, financing activities, or noncash investing and
financing activities.
(a)
Purchased a machine for $30,000, giving a long-term note in
exchange.
(b)
Issued $50,000 par value common stock for cash.
(c)
Issued $200,000 par value common stock upon conversion of
bonds having a face value of $200,000.
2. (d)
Declared and paid a cash dividend of $13,000.
(e)
Sold a long-term investment with a cost of $15,000 for $15,000
cash.
(f)
Collected $16,000 of accounts receivable.
3. (g)
Paid $18,000 on accounts payable.
IFRS 13-1
Ling Company reports the following information for the year
ended December 31, 2014: sales revenue $1,000,000, cost of
goods sold $700,000, operating expenses $200,000, and an
unrealized gain on non-trading securities of $75,000. Prepare a
statement of comprehensive income using the one-statement
approach.
LING COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2014
$
4. $
Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 127,664
$ 76,472
8. For the Year Ended December 31, 2014
Sales revenue
$613,767
Less:
Cost of goods sold
$214,027
Operating expenses, excluding depreciation
19,608
Depreciation expense
73,470
Income tax expense
43,102
Interest expense
7,473
9. Loss on disposal of plant assets
11,850
369,530
Net income
$ 244,237
Additional information:
1.
New plant assets costing $158,000 were purchased for cash
during the year.
2.
Old plant assets having an original cost of $90,850 and
accumulated depreciation of $76,630 were sold for $2,370 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $41,128 was declared and paid during the
year.
Prepare a statement of cash flows using the indirect
method. (Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ODGERS INC.Statement of Cash Flows
For the Year Ended December 31, 2014
16. $730,305
Less:
Cost of goods sold
$254,665
Operating expenses, excluding depreciation
23,331
Depreciation expense
87,420
Income taxes
51,286
Interest expense
8,892
Loss on disposal of plant assets
14,100
17. 439,694
Net income
$ 290,611
Additional information:
1.
New plant assets costing $188,000 were purchased for cash
during the year.
2.
Old plant assets having an original cost of $108,100 and
accumulated depreciation of $91,180 were sold for $2,820 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $48,937 was declared and paid during the
year.
Further analysis reveals that accounts payable pertain to
merchandise creditors.
Prepare a statement of cash flows for Odgers Inc. using the
direct method. (Show amounts that decrease cash flow with
either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ODGERS INC.Statement of Cash Flows
For the Year Ended December 31, 2014
20. Problem 13-2A
The comparative statements of Osborne Company are presented
here.
OSBORNE COMPANY
Income Statements
For the Years Ended December 31
2014
2013
Net sales
$1,895,805
$1,755,765
Cost of goods sold
1,063,805
1,011,265
Gross profit
832,000
744,500
Selling and administrative expenses
505,265
484,265
Income from operations
326,735
260,235
21. Other expenses and losses
Interest expense
23,104
21,104
Income before income taxes
303,631
239,131
Income tax expense
93,104
74,104
Net income
$ 210,527
$ 165,027
OSBORNE COMPANY
Balance Sheets
December 31
Assets
2014
2013
Current assets
23. $872,642
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$ 165,265
$150,665
Income taxes payable
44,604
43,104
Total current liabilities
209,869
193,769
Bonds payable
233,473
213,473
Total liabilities
443,342
24. 407,242
Stockholders’ equity
Common stock ($5 par)
290,000
300,000
Retained earnings
313,400
165,400
Total stockholders’ equity
603,400
465,400
Total liabilities and stockholders’ equity
$1,046,742
$872,642
All sales were on account. Net cash provided by operating
activities for 2014 was $233,480. Capital expenditures were
$135,410, and cash dividends were $62,527.
Compute the following ratios for 2014. (Round all answers to 2
decimal places, e.g. 1.83 or 12.61%.)
(a)
Earnings per share
25. $
(b)
Return on common stockholders’ equity
%
(c)
Return on assets
%
(d)
Current ratio
:1
(e)
Accounts receivable turnover
times
(f)
Average collection period
days
(g)
Inventory turnover
26. times
(h)
Days in inventory
days
(i)
Times interest earned
times
(j)
Asset turnover
times
(k)
Debt to assets
%
(l)
Current cash debt coverage
times
(m)
Cash debt coverage
27. times
(n)
Free cash flow
$
Exercise 7-3
The following control procedures are used in Kelton Company
for over-the-counter cash receipts.
(a) For each procedure, explain the weakness in internal control
and identify the control principle that is violated.
Procedure
Weakness
Principle Violated
1.
Each store manager is responsible for interviewing applicants
for cashier jobs. They are hired if they seem honest and
trustworthy.
28. 2.
All over-the-counter receipts are registered by three clerks who
share a cash register with a single cash drawer.
3.
To minimize the risk of robbery, cash in excess of $100 is
stored in an unlocked attaché case in the stock room until it is
deposited in the bank.
4.
29. At the end of each day the total receipts are counted by the
cashier on duty and reconciled to the cash register total.
5.
The company accountant makes the bank deposit and then
records the day’s receipts.
Broadening Your Perspective 13-2
The financial statements of The Hershey Company and Tootsie
Roll are presented below.
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31,
2011
2010
2009
30. In thousands of dollars except per share amounts
Net Sales
$6,080,788
$5,671,009
$5,298,668
Costs and Expenses:
Cost of sales
3,548,896
31. 3,255,801
3,245,531
Selling, marketing and administrative
1,477,750
1,426,477
1,208,672
Business realignment and impairment (credits) charges, net
(886
)
83,433
82,875
Total costs and expenses
5,025,760
4,765,711
4,537,078
32. Income before Interest and Income Taxes
1,055,028
905,298
761,590
Interest expense, net
92,183
96,434
90,459
Income before Income Taxes
962,845
808,864
671,131
Provision for income taxes
333,883
299,065
34. $2.85
$2.29
$1.97
Net Income Per Share—Diluted—Common Stock
$2.74
$2.21
$1.90
Cash Dividends Paid Per Share:
Common Stock
$1.3800
$1.2800
$1.1900
35. Class B Common Stock
1.2500
1.1600
1.0712
The notes to consolidated financial statements are an integral
part of these statements and are included in the Hershey's 2011
Annual Report, available at www.thehersheycompany.com.
THE HERSHEY COMPANY
CONSOLIDATED BALANCE SHEETS
December 31,
2011
2010
In thousands of dollars
38. Property, Plant and Equipment, Net
1,559,717
1,437,702
Goodwill
516,745
524,134
Other Intangibles
111,913
123,080
Deferred Income Taxes
38,544
21,387
41. Current portion of long-term debt
97,593
261,392
Total current liabilities
1,173,775
1,298,845
Long-term Debt
1,748,500
1,541,825
Other Long-term Liabilities
617,276
494,461
43. Preferred Stock, shares issued: none in 2011 and 2010
—
—
Common Stock, shares issued: 299,269,702 in 2011 and
299,195,325 in 2010
299,269
299,195
Class B Common Stock, shares issued: 60,632,042 in 2011
and 60,706,419 in 2010
60,632
60,706
Additional paid-in capital
490,817
45. 902,316
Noncontrolling interests in subsidiaries
23,626
35,285
Total stockholders’ equity
872,648
937,601
Total liabilities and stockholders’equity
$4,412,199
$4,272,732
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
46. For the years ended December 31,
2011
2010
2009
In thousands of dollars
Cash Flows Provided from (Used by) Operating Activities
Net income
48. Stock-based compensation expense, net of tax of $15,127,
$17,413 and $19,223, respectively
28,341
32,055
34,927
Excess tax benefits from stock-based compensation
(13,997
)
(1,385
)
(4,455
)
Deferred income taxes
33,611
(18,654
49. )
(40,578
)
Gain on sale of trademark licensing rights, net of tax of $5,962
(11,072
)
—
—
Business realignment and impairment charges, net of tax of
$18,333, $20,635 and $38,308, respectively
30,838
77,935
60,823
Contributions to pension plans
57. Exercise of stock options
184,411
92,033
28,318
Excess tax benefits from stock-based compensation
13,997
1,385
4,455
Contributions from noncontrolling interests in subsidiaries
—
10,199
58. 7,322
Repurchase of Common Stock
(384,515
)
(169,099
)
(9,314
)
Net Cash (Used by) Financing Activities
(438,818
)
(71,100
)
(698,921
)
(Decrease) Increase in Cash and Cash Equivalents
(190,956
)
631,037
59. 216,502
Cash and Cash Equivalents as of January 1
884,642
253,605
37,103
Cash and Cash Equivalents as of December 31
$693,686
$884,642
$253,605
Interest Paid
$97,892
$97,932
60. $91,623
Income Taxes Paid
292,315
350,948
252,230
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in
thousands except per share data)
For the year ended December 31,
2011
2010
2009
71. statements.)
CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in
thousands except per share data)
Assets
December 31,
2011
2010
CURRENT ASSETS:
Cash and cash equivalents
$78,612
83. 133,566
132,046
SHAREHOLDERS’ EQUITY:
Common stock, $.69-4/9 par value—120,000 shares
authorized—36,479 and 36,057 respectively, issued
25,333
25,040
Class B common stock, $.69-4/9 par value—40,000 shares
authorized—21,025 and 20,466 respectively, issued
14,601
14,212
84. Capital in excess of par value
533,677
505,495
Retained earnings, per accompanying statement
114,269
135,866
Accumulated other comprehensive loss
(19,953
)
(11,213
)
Treasury stock (at cost)—71 shares and 69 shares, respectively
95. Net purchase of trading securities
(3,234
)
(2,902
)
(1,713
)
Purchase of available for sale securities
(39,252
)
(9,301
)
(11,331
)
Sale and maturity of available for sale securities
7,680
96. 8,208
17,511
Net cash used in investing activities
(51,157
)
(16,808
)
(16,364
)
CASH FLOWS FROM FINANCING ACTIVITIES:
97. Shares repurchased and retired
(18,190
)
(22,881
)
(20,723
)
Dividends paid in cash
(18,407
)
(18,130
)
(17,825
)
Net cash used in financing activities
(36,597
101. Based on the information in the financial statements, determine
each of the following for each company:
The percentage increase (i) in net sales and (ii) in net income
from 2010 to 2011. (Round answers to 1 decimal places, e.g.
15.2%. Enter negative amounts using either a negative sign
preceding the number e.g. -15.2% or parentheses e.g. (15.2)%.)
Hershey
Tootsie Roll
Percentage increase (decrease) in net sales
%
%
Percentage increase (decrease) in net income
%
102. %
SHOW SOLUTION
The percentage increase (i) in total assets and (ii) in total
stockholders’ equity from 2010 to 2011. (Round answers to 1
decimal place, e.g. 15.2%. Enter negative amounts using either
a negative sign preceding the number e.g. -15.2% or parentheses
e.g. (15.2)%.)
Hershey
Tootsie Roll
Percentage increase (decrease) in total assets
%
%
Percentage increase (decrease) in total stockholders’ equity
103. %
%
SHOW SOLUTION
The earnings per share for 2011. (Round answers to 2 decimal
places, e.g. 15.25.)
Hershey
Tootsie Roll
Earnings per share