财务会计rcies.doc

1. Baesd on income statement, balance sheet and cash flow statement of FUTURE! Brands, Inc. and other information, shown as followings: (48 scores) (1) Translate 3 cash flow statement items into Chinese: (6 scores) Purchases of property, plant, and equipment Payment of dividends and other distributions to stockholders Net Increase in cash and cash Equivalents (2)Calculate required financial indicators on Dec. 31, 2011: (20 scores) Current ratio= Quick ratio= Debt-to-equity= long-term debt-to equity= Times-interest-earned= Gross profit percentage= Inventory turnover= Days inventory held= Receivable turnover= Days receivable=FUTURE! Brands, Inc. Statement of Income for the YearsEnded Dec. 31, 2011 and 2010(In millions) 2011 2010RevenuesCompany sales 9,365 9,225Franchise and license fees 196 124Total revenues 9,561 9,349ExpensesCost of goods sold 2,249 2,284Payroll and employee benefits expense 2,442 2,471Occupancy and other operating expenses 2,403 2,315General and administrative expenses 1,187 1,158Other operating expenses (income) 18 (32)Total expenses 8,229 8,196Operating profit 1,262 1,153Interest expense 154 127Income before income taxes 1,108 1,026Income tax expense 284 264Net income 824 762FUTURE! Brands, Inc. Balance (Adapted) December 31, 2011,and 2010(In millions) 2011 2010ASSETSCurrent Assets Cash and cash equivalents 310 150Short-term investments 15 51Accounts and note receivable 220 236Inventories 93 85Prepaid expenses and other current assets 263 333 Total Current Assets 901 855 Property, plant and equipment, at cost. 6,777 6,186Less: Accumulated depreciation. (3,146) (2,830)Property, plant and equipment, net 3,631 3,356Intangible assets 1,009 868 Investments . 138 173Other assets 674 545 Total Assets 6,353 5,797 LIABILITIESCurrent LiabilitiesAccounts payable . 554 473Income taxes payable 37 79Short-term borrowings (Notes payable) 22 211Salaries and wages payable 302 274Other current liabilities 604 586 Total Current Liabilities 1,724 1,623Long-term debt 2,045 1,649Other long-term liabilities 1,147 1,076Total Liabilities 4,916 4,348SHAREHOLDERS EQUITYCommon stock 23 20Paid-in capital 12 14Treasury stock (8) (6)Retained earnings 1,593 1,619Other equity. (183) (198) Total Shareholders Equity 1,437 1,449 Total Liabilities and Shareholders Equity 6,353 5,797FUTURE! Brands, Inc. Statement of Cash Flows (Adapted) Years Ended December 31, 2011,and 2010(In millions) 2011 2010Cash Flows-Operating ActivitiesNet income . 824 762Adjustments to reconcile net income to net cash Provided by operating activities 478 476Net Cash Provided by Operating Activities 1,302 1,238Cash Flows-Investing Activities Purchases of property, plant, and equipment. (614) (609)Sales of property, plant, and equipment 57 81Other . 81 183Net Cash Used in Investing Activities (476) (345)Cash Flows-Financing Activities Issuance of common stock Issuance of short-term and long-term debt (Borrowing) 540 160Repayments of short-term and long-term debt (288) (48)Payment of dividends and other distributions to stockholders (850) (210)Other payments (67) (733)Net Cash Used in Financing Activities (665) (831)Net Increase in cash and cash Equivalents. 161 62Cash and Cash Equivalents-Beginning of Year 158 96Cash and Cash Equivalents-End of Year 319 158(3) Supposed, the numbers of common stock are 110,134,256 and 110,026,782 shares for Dec. 31, 2011 and Dec. 31, 2010 respectively. The numbers of treasury stock on Dec. 31, 2011 and Dec. 31, 2010 are 200,000 and 195,000 shares respectively. The closing price of common stock is $15.25 per share and on Dec. 31, 2011, and $11.25 per share on Dec. 31, 2010, and there is no cash dividends distribution from Dec. 31, 2010 to Dec. 31, 2011. Calculate required financial indicators on Dec. 31, 2011: (10 scores)Market-to-book ratio=Accounting return on equity=Economic return on equity=(4) Point out the asset items classified into BvA1 and BvA3. (8 scores)BvA1 items：BvA3 items： (5) Do the balance sheet and income statement of FUTURE! Brands, Inc give a clear or cloudy picture of its activities? (4 scores)2. Make ordinary accounting entries and adjustment accounting entries and/or closing accounting entries at ending date of 2011, if any. (52 scores)1.Bob and Betsy decided to incorporate Wesell Inc. They became two owners of Wesell Inc. by each contributing $700,000 cash to the business on January 1, 2011. (2 scores)2.Bob and Betsy decided Wesell will borrow some money. On January 2, 2011, Wesell opted to issue bonds and received $00,000 cash, the bonds pay 6% interest annually (On January 2 of each year) and fall due on January 2, 2020. (4 scores)3.On January 3, 2011, Wesell bought computers and office equipment for $30,000. The expected useful life is 5 years, and expected net salvage value is $5 000, using duble-balance-declining depreciation method. (4 scores)4.On January 4, 2011, Wesell purchased $3,000 of supplies on credit. An physical count for them under FIFO method found that the supplies was only $400 left. (4 scores) 5. On January 2, 2011, Wesell paid $1,400 of the account payable. (2 scores)6. On January 1, 2011, Websell paid $66,000 cash to acquire the rights to various software programs, which expected last 4 years. (4 scores)7. On January 1, 2011, Websell paid $280,000 cash for the rights to copyrighted materials, being expected to be useful for the next 5 years. (4 scores)8. On February 5, 2011, Websell completed a consulting engagement for the client and billed the client for $3,200. (2 scores)9. On April 31, 2011, Websell paid developers for its web site $1,200,000 for programming and design service, which expected last 4 years. (4 scores)10. On April 1, 2011, Websell entered into the agreement to provide internet consulting services to a major corporation. The agreement called