QUESTION 1:
Foyle Architects incorporated as licensed architects on April 1, 2014. During the first month of the operation of the business, these events and transactions occurred:
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Apr. 1
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Stockholders invested $22,716 cash in exchange for common stock of the corporation.
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1
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Hired a secretary-receptionist at a salary of $473 per week, payable monthly.
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2
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Paid office rent for the month $1,136.
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3
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Purchased architectural supplies on account from Burlington Company $1,641.
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10
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Completed blueprints on a carport and billed client $2,398 for services.
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11
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Received $883 cash advance from J. Madison to design a new home.
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20
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Received $3,534 cash for services completed and delivered to M. Svetlana.
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30
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Paid secretary-receptionist for the month $1,892.
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30
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Paid $379 to Burlington Company for accounts payable due.
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Journalize the transactions
Post to the ledger T-accounts.
Prepare a trial balance on April 30, 2014.
QUESTION 2:
This is the trial balance of Solis Company on September 30.
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SOLIS COMPANY
Trial Balance
September 30, 2014
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Debit
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Credit
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Cash
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$ 23,450
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Accounts Receivable
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6,850
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Supplies
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5,000
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Equipment
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10,900
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Accounts Payable
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$ 9,050
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Unearned Service Revenue
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4,000
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Common Stock
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19,250
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Retained Earnings
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13,900
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$46,200
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$46,200
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The October transactions were as follows.
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Oct. 5
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Received $1,380 in cash from customers for accounts receivable due.
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10
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Billed customers for services performed $5,420.
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15
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Paid employee salaries $1,000.
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17
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Performed $620 of services in exchange for cash.
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20
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Paid $1,810 to creditors for accounts payable due.
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29
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Paid a $330 cash dividend.
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31
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Paid utilities $400.
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Prepare a general ledger using T-accounts. Enter the opening balances in the ledger accounts as of October 1.
Journalize the transactions.
Post to the ledger accounts.
Prepare a trial balance on October 31, 2014.
QUESTION 3:
A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained.
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Assets
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=
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Liabilities
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+
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Stockholders' Equity
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Cash
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+
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A/R
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+
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Supp.
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+
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Equip.
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=
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Accounts Payable
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+
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Common Stock
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+
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Retained Earnings
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Revenues
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-
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Expenses
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-
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Dividends
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(1)
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$15,520
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$15,520
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Com. Stock
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(2)
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-1,800
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$5,000
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$3,200
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(3)
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-890
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$890
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(4)
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3,170
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$6,340
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$9,510
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Serv. Rev.
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(5)
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-1,960
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-1,960
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(6)
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-1,130
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-$1,130
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Div.
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(7)
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-880
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-$880
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Rent Exp.
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(8)
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510
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-510
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(9)
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-3,940
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-3,940
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Salar. Exp.
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(10)
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250
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-250
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Util. Exp.
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Determine how much stockholders' equity increased for the month.
Increase in stockholders' equity $
Compute the net income for the month.
The net income $
QUESTION 4:
The financial statements of The Hershey Company and Tootsie Roll are presented below. Assume Hershey's average number of shares outstanding was 220,688,000, and Tootsie Roll's was 57,892,000.
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THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
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For the years ended December 31,
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2011
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2010
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2009
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|
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In thousands of dollars except per share amounts
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|
|
|
|
|
|
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Net Sales
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$6,080,788
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$5,671,009
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$5,298,668
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Costs and Expenses:
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Cost of sales
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3,548,896
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3,255,801
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3,245,531
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Selling, marketing and administrative
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1,477,750
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1,426,477
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1,208,672
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Business realignment and impairment (credits) charges, net
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(886
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)
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83,433
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82,875
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Total costs and expenses
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5,025,760
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4,765,711
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4,537,078
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Income before Interest and Income Taxes
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1,055,028
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905,298
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761,590
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Interest expense, net
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92,183
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96,434
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90,459
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Income before Income Taxes
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962,845
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808,864
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671,131
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Provision for income taxes
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333,883
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299,065
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235,137
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Net Income
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$628,962
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$509,799
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$435,994
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Net Income Per Share-Basic-Class B Common Stock
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$2.58
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$2.08
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$1.77
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Net Income Per Share-Diluted-Class B Common Stock
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$2.56
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$2.07
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$1.77
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Net Income Per Share-Basic-Common Stock
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$2.85
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$2.29
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$1.97
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Net Income Per Share-Diluted-Common Stock
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$2.74
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$2.21
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$1.90
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Cash Dividends Paid Per Share:
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Common Stock
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$1.3800
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$1.2800
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$1.1900
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Class B Common Stock
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1.2500
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1.1600
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1.0712
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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.
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For each company calculate the following values for 2011. (Hint: When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.)
(1) Working capital.
(2) Current ratio.
(3) Debt to assets ratio.
(4) Free cash flow.
(5) Earnings per share.
QUESTION 5:
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
|
|
|
In thousands of dollars except per share amounts
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$6,080,788
|
|
|
$5,671,009
|
|
$5,298,668
|
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
|
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Cost of sales
|
|
3,548,896
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|
|
3,255,801
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|
3,245,531
|
|
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Selling, marketing and administrative
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|
1,477,750
|
|
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1,426,477
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|
1,208,672
|
|
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Business realignment and impairment (credits) charges, net
|
|
(886
|
)
|
|
83,433
|
|
82,875
|
|
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Total costs and expenses
|
|
5,025,760
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|
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4,765,711
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|
4,537,078
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|
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Income before Interest and Income Taxes
|
|
1,055,028
|
|
|
905,298
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|
761,590
|
|
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Interest expense, net
|
|
92,183
|
|
|
96,434
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|
90,459
|
|
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Income before Income Taxes
|
|
962,845
|
|
|
808,864
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|
671,131
|
|
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Provision for income taxes
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|
333,883
|
|
|
299,065
|
|
235,137
|
|
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Net Income
|
|
$628,962
|
|
|
$509,799
|
|
$435,994
|
|
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Net Income Per Share-Basic-Class B Common Stock
|
|
$2.58
|
|
|
$2.08
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|
$1.77
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Net Income Per Share-Diluted-Class B Common Stock
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|
$2.56
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|
$2.07
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|
$1.77
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|
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Net Income Per Share-Basic-Common Stock
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|
$2.85
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|
|
$2.29
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|
$1.97
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Net Income Per Share-Diluted-Common Stock
|
|
$2.74
|
|
|
$2.21
|
|
$1.90
|
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Cash Dividends Paid Per Share:
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
$1.3800
|
|
|
$1.2800
|
|
$1.1900
|
|
|
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.
|
|
Based on the information contained in these financial statements, determine the normal balance for:
QUESTION 6:
IFRS 2-6
The following information is available for Cole Bowling Alley at December 31, 2014.
|
Buildings
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$128,800
|
|
Share Capital-Ordinary
|
|
$100,000
|
|
|
Accounts Receivable
|
|
14,520
|
|
Retained Earnings
|
|
15,000
|
|
|
Prepaid Insurance
|
|
4,680
|
|
Accumulated Depreciation-Buildings
|
|
42,600
|
|
|
Cash
|
|
18,040
|
|
Accounts Payable
|
|
12,300
|
|
|
Equipment
|
|
62,400
|
|
Notes Payable
|
|
97,780
|
|
|
Land
|
|
64,000
|
|
Accumulated Depreciation-Equipment
|
|
18,720
|
|
|
Insurance Expense
|
|
780
|
|
Interest Payable
|
|
2,600
|
|
|
Depreciation Expense
|
|
7,360
|
|
Service Revenue
|
|
14,180
|
|
|
Interest Expense
|
|
2,600
|
|
|
|
|
|
Prepare a classified statement of financial position; assume that $13,900 of the notes payable will be paid in 2015.
QUESTION 7:
The Zetar plc's complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com.
Describe in which statement each of the following items is reported, and the position in the statement (e.g., current asset).
Attachment:- ACCOUNTING.rar