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```					               Name:                                                                     Date:
Instructor:                                                                 Course:
Managerial Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel
Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
Problem P13-7A, Here are the financial statements of Newman Company:
NEWMAN COMPANY
Comparative Balance Sheets
December 31
Assets                                   2005                          2004
Cash                                                             \$31,000                   \$20,000
Accounts receivable                                               38,000                    14,000
Merchandise inventory                                             27,000                    20,000
Property, plant, and equipment                \$60,000                        \$78,000
Less: Accumulated depreciation                (30,000)            30,000     (24,000)      54,000
Total                                                           \$126,000                 \$108,000

Liabilities and Stockholders' Equity
Accounts payable                                               \$29,000                 \$15,000
Income taxes payable                                             7,000                   8,000
Bonds payable                                                   27,000                  33,000
Common stock                                                    18,000                  14,000
Retained earnings                                               45,000                  38,000
Total                                                         \$126,000                \$108,000

NEWMAN COMPANY
Income Statement
For the Year Ended December 31, 2005
Sales                                                         \$242,000
Cost of Goods Sold                                             175,000
Gross profit                                                    67,000
Selling expenses                             \$18,000
Income from operations                                          43,000
Interest expense                                                 3,000
Income before income taxes                                      40,000
Income tax expense                                               6,000
Net income                                                     \$34,000

1. Dividends declared and paid were         \$36,000
2. During the year equipment was sold for                 \$8,500     cash. This equipment cost    \$18,000     originally and had a book
value of        \$8,500    at the time of sale.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.

FileName: 00ab48d9-8b8c-4984-9051-ee94946a0d91.xls, Tab: Problem P13-7B, Page 1 of 3, 9/13/2011, 4:57 PM
Name:                                                                         Date:
Instructor:                                                                     Course:
Instructions: Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel
Managerial
(a) Prepare a statement of cash flows using the indirect method.

NEWMAN COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2005
Cash flows from operating activities
Net income                                                                      Amount
Adjustments to reconcile net income to net cash
provided by operating activities
Title                                                             Amount
Title                                                             Amount
Title                                                             Amount
Title                                                             Amount
Title                                                             Amount    Formula
Net cash provided by operating activities                                Formula
Title
Title                                                             Amount
Net cash provided by investing activities                                Formula
Title
Title                                                             Amount
Title                                                             Amount
Title                                                                    Formula
Net decrease in cash                                                           Formula
Title                                                                          Amount
Title                                                                          Formula

(b)(1) Compute the cash based current cash debt-basis ratio.

Amount           +          Amount
Amount          ÷                                                           =            Formula     times
Number

Calculation area as desired
Calculation area as desired

(b)(2) Compute the cash based cash debt coverage ratio.

Amount           +          Amount
Amount          ÷                                                           =            Formula     times
Number

Calculation area as desired
Calculation area as desired

(b)(3) Compute the cash based free cash flow.

Amount           -                           -            Amount              =        Formula

FileName: 00ab48d9-8b8c-4984-9051-ee94946a0d91.xls, Tab: Problem P13-7B, Page 2 of 3, 9/13/2011, 4:57 PM
Instructions for the Microsoft Excel Templates

Detail and information on Excel is contained within the manual.

Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant
and bring up one of several help menus.

Type your name into the cell "D5". This will be copied by formula to the rest of the pages as required.

Type the due date of your problem into cell "I5". This will be copied by formula to the rest of the pages as required.

Type the instructor's name into cell "D6". This will be copied by formula to the rest of the pages as required.

Type the course identifier into cell "I6". This will be copied by formula to the rest of the pages as required.

The problem is identified for you in cell "B7".

In "DATE" cells enter the date in any of several formats and Excel will format it correctly.

If more than one page is preformatted into the problem, page breaks are preset and formulas are
set to copy the header into the remaining pages.

Place the proper account title in the cell where the word "ACCOUNT" appears on the template.

Place the amount in the cell where the word "AMOUNT" appears on the template. A formula may be placed in

Enter a number like 914 to signify units or gallons where the word "NUMBER" appears.

Write a formula into cells where the word "FORMULA" appears. In these cells, an amount calculated outside of

Place the explanation for the entry in the cell where the word "EXPLANATION" appears on the template.

Insert the account number where "ACCT #" appears on the template during posting.

Insert the journal reference where "JOURN #" appears on the template during posting.

Insert the title in the cell where "TITLE" appears on the template.

The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.

The gray filled cells define the perimeter of the problem and the print area.

The problem is formatted for whole dollars with comma separations (no cents) except where required.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry.

Negative values may be shown as (\$400) vice -\$400.

Enter a string like: (\$259,417 X 12 months) + (0.3651 X 5,434,631) where the word TEXT appears.

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