Hoeman, Inc: balance sheet and evaluate the change in cash
Not what you're looking for?
For the problem presented below and attached, complete the balance sheet and evaluate the change in cash.
Presented below (See Analysis worksheet) is a partially completed balance sheet for Hoeman, Inc., at December 31, 2002,
together with comparative data for the year ended December 31, 2001.
Net income for the year ended December 31, 2002, was $94,000.
Dividends paid during the year ended December 31, 2002, were $67,000.
Accounts receivable decreased $10,000 during the year ended December 31, 2002.
The cost of new building acquired during 2002 was $125,000.
No buildings were disposed of during 2002.
The land account was not affected by any transactions during the year, but the fair market value of the
land at December 31, 2002, was $178,000.
HOEMAN, INC.
Comparative Balance Sheets
At December 31, 2002, and 2001
1999 1998
Assets
Cash $ 52,000 $ 46,000
Accounts receivable 134,000
Inventory 156,000 176,000
Total current assets $ $ 356,000
Land $ 140,000
Buildings 290,000
Less: Accumulated depreciation (120,000) (105,000)
Total land and buildings $ $ 325,000
Total assets $ $ 681,000
Liabilities
Notes payable $ 155,000 $ 124,000
Accounts payable 197,000
Total current liabilities $ 322,000 $ 321,000
Long-term debt $ $ 139,000
Owners' Equity
Common stock $ 30,000 $ 45,000
Retained earnings 176,000
Total owners' equity $ $ 221,000
Total liabilities and owners' equity $ $ 681,000
Instructions:
Please proceed to the "Analysis" worksheet and complete the basic problem requirements. Complete the problem
requirements by entering appropriate amounts or formulas in shaded worksheet cells:
a. Complete the December 31, 2002 balance sheet. (Hint: Long-term debt is the last number to compute to make
the balance sheet balance.)
b. Prepare a statement of cash flows for the year ended December 31, 2002, using the indirect method.
After completing the "Analysis" worksheet, please proceed to the "What the Numbers Mean" worksheet and respond
to the additional problem requirements.
ACCOUNTING: What the Numbers Mean, 5e
Chapter 9 Problem 9-25 Name: Enter Name
Complete the Modeling:
a. Complete the December 31, 2002, balance sheet.
HOEMAN, INC.
Comparative Balance Sheets
At December 31, 2002, and 2001
2002 2001
Assets
Cash $ 52,000 $ 46,000
Accounts receivable 134,000
Inventory 156,000 176,000
Total current assets $ $ 356,000
Land $ 140,000
Buildings 290,000
Less: Accumulated depreciation (120,000) (105,000)
Total land and buildings $ $ 325,000
Total assets $ $ 681,000
Liabilities
Notes payable $ 155,000 $ 124,000
Accounts payable 197,000
Total current liabilities $ 322,000 $ 321,000
Long-term debt $ $ 139,000
Owners' Equity
Common stock $ 50,000 $ 45,000
Retained earnings 176,000
Total owners' equity $ 50,000 $ 221,000
Total liabilities and owners' equity $ $ 681,000
b. Prepare a statement of cash flows for the year ended December 31, 2002, using the indirect method.
HOEMAN, INC.
Statement of Cash Flows
For the Year Ended December 31, 2002
Cash Flows from Operating Activities:
$
Add (deduct) items not affecting cash:
Net cash provided by operating activities $ -
Cash Flows from Investing Activities:
$
Cash Flows from Financing Activities:
$
Net cash provided by financing activities $ -
Net increase in cash for the year $ -
ACCOUNTING: What the Numbers Mean, 5e
Chapter 9 Problem 9-25 Name: Enter Name
What does it mean? Question 1:
Explain, in general, why "Net Income" is different than "Net Cash Provided by Operating Activities" for
the year ended December 31, 2002, for Hoeman, Inc.
What does it mean? Question 2:
Evaluate the change in cash for the year ended December 31, 2002, for Hoeman, Inc. Has Hoeman, Inc.
generated most of its cash requirements from operations? Has its uses of cash been balanced between
investments and dividends?
Purchase this Solution
Solution Summary
The solution in Excel presents the completed balance sheet and a detailed computation and explanation of the change in cash. The narrative portion of the solution is well done and easy to understand.
Solution Preview
Read the attached excel worksheet which has the solution.
Problem as Presented 2,002 2001
Assets
Cash 52,000 46000
Accounts Receivable 124,000 134000
Inventory 156,000 176000
Total Current Assets 332,000 356000
Land 140,000 140,000
Buildings 415,000 290000
Less: Accumulated Depreciation (120,000) -105000
Total Land and Buildings 435,000 325000
Total Assets 767,000 681000
Liabilities
Notes Payable 155,000 124000
Accounts Payable 167,000 197000
Total Current Liabilities 322,000 321000
Long Term Debt 192,000 139000
Owners Equity
Common Stock 50,000 45000
Retained Earnings 203,000 176000
Total Owners Equity 253,000 221000
Total Liabilities and Owners Equity 767,000 681000
Facts Given in the problem 2,002
Net Income 94,000
Dividends Paid 67,000
Accounts Receivable Decreased By 10,000
Cost of New Building Acquired 125,000
Buildings Sold 0
Fair Market Value of Land on 12/31/02 178,000 ...
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.