Present below are data from Shore Co.:

Present below are data from Shore Co.:

1)Present below are data from Shore Co.: 2011 2012 Credit Sales $800,000 $1,000,000 Allowance for doubtful accounts (Jan 1) 8,000 ? Allowance for doubtful accounts (Dec 31) ? ? Collection of accounts written off in prior years 10,000 0 Customer accounts written off 20,000 24,000 Accounts receivable (Jan 1) ? 300,000 Accounts receivable (Dec 31) 300,000 500,000 (a) (3 Points) Shore Co. collected $680,000 from customer account receivables during 2011. What should be the balance in Accounts Receivable at Jan 1, 2011? (b) (3 Points) For 2011, Shore Co. provides for doubtful accounts based on 5% of credit sales. What is the balance in Allowance for Doubtful Accounts at Dec 31, 2011? (c) (4 Points) For 2012, doubtful accounts are 4% of the ending balance of accounts receivable, determine (i) the balance in Allowance for doubtful Accounts at Dec 31, 2012, and (ii) bad debt expense to be reported for 2012. Record journal entry for part (ii).2)P3. (10 Points) The panel below reports cash flows and earnings for Wal-Mart from 1988 to 1996 (in millions of dollars, except per share numbers):198819891990199119921993199419951996Cash from operations5368289681,4221,5531,5402,5733,4102,993Cash investments6275418941,5262,1503,5064,4863,7923,332Free cash flow(91)28774(104)(597)(1,966)(1,913)(382)(339)Net Income6288371,0761,2911,6081,9952,3332,6812,740EPS0.280.370.480.570.700.871.021.171.19(3 Points) What can you tell from the EPS data? Perform a horizontal analysis to support your view.(2 Points) What is the definition of free cash flow? How do we use free cash flow in financial statement analysis?(2 Points) Why would Wal-Mart have such negative free cash flows? (3 Points) What explains the difference between Wal-Marts cash flows and earnings? Any implications for Wal-Marts financial position and performance?3)P2. (10 points) . Presented below are data for Cars Corp (in millions)2013 2014Balance Sheet:Assets, January 1 $4,560 ?Liabilities, January 1 ? $2,736Stockholders Equity, Jan. 1 ? 2,750Dividends 7 6Common Stock 608 650Stockholders Equity, Dec. 31 2,750 2,166Income Statement:Cost of goods sold $100Dividend revenue 5Sales return 10Income tax expense 12Operating expenses 46Sales revenue 200Net Income ? ?Compute the following items:(a) (2 Points) The ending balance of Assets for 2013;(b) (2 Points) The amount of gross profit in Carss multiple-step income statement for 2013;(c) (2 Points) Net income for 2013;(d) (2 Points) The beginning balance of Stockholders Equity for 2013;(e) (2 Points) Net income for 2014;


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