You are given the partial income statement and balance sheets below, as well as
ID: 1171497 • Letter: Y
Question
You are given the partial income statement and balance sheets below, as well as information concerning certain performance measurements on page 2. (If the performance measurements use balance sheet data, the measurements are based on 12/31/17 data.) Fill in all missing data in the income statement and balance sheets. On page 3, calculate the 2016 statement of cash flows.
INCOME STATEMENT, 2017
Revenues
COGS
600
Expenses EXCLUDING Interest
50
EBIT
Interest
50
EBT
Tax @ 40%
Net Income
BALANCE SHEET, 12/31/17 BALANCE SHEET, 12/31/16
Cash
50
30
A/R
40
Inventory
80
Current Assets
150
Gross PP&E
900
Accum. Depre.
200
150
Net PP&E
800
750
Total Assets
900
A/P
30
10
Accruals
20
10
Short Term Debt
50
80
Current Liab.
100
100
Long Term Debt
350
300
Total Liabilities
450
400
Common Stock
100
Retained Earnings
400
Tot. Com. Equity
500
Dividend per Share
# of Common Sh.
100
100
Interest Coverage (Times Interest Earned) = 7
DSO = 18.25 days
Current Ratio = 2
Cash From Operating Activities:
Cash From Investing Activities:
Cash From Financing Activities:
INCOME STATEMENT, 2017
REVENUES
$1,000
COGS EXCL. DEPRECIATION
600
DEPRECIATION
100
GROSS MARGIN (OP. INC.)
300
EXPENSES
200
EBIT
100
INTEREST
50
EBT
50
TAXES @ 40%
20
NET INCOME
30
BALANCE SHEETS
12/31/16
12/31/17
CASH $100
CASH $280
A/R 50
A/R 100
INVENTORIES 90
INVENTORIES 150
CURRENT ASSETS 240
CURRENT ASSETS 530
GROSS PP&E 1,000
GROSS PP&E 1,000
- ACCUM. DEPRE. 300
- ACCUM. DEPRE 400
NET PP&E 700
NET PP&E 600
TOTAL ASSETS 940
TOTAL ASSETS 1,130
A/P 40
A/P 50
ACCRUALS 50
ACCRUALS 50
ST DEBT 50
ST DEBT 100
CURRENT LIAB. 140
CURRENT LIAB. 200
LONG TERM DEBT 400
LONG TERM DEBT 500
TOTAL LIAB. 540
TOTAL LIAB 700
TOTAL EQUITY 400
TOTAL EQUITY 430
TOTAL LIAB.+EQ. 940
TOTAL LIAB.+EQ. 1,130
TOTAL COMMON SH. 200
TOTAL COMMON SH. 200
CURRENT PRICE/SHARE = $10
Revenues
COGS
600
Expenses EXCLUDING Interest
50
EBIT
Interest
50
EBT
Tax @ 40%
Net Income
Explanation / Answer
Statement showing cash flow
Particulars Amount Cash flow from operting activity PAT 30 Add: depreciation 100 Add: interest 50 Cash flow from operting activity before WC changes 180 Incr in AR decrease in cash -50 Incr in inventories decr in cash -60 incr in AP incr in cash 10 Ince in short term debt increase in cash 50 Cash flow from operting activity 130 Cash flow from investing activity 0 Cash flow from financing activity activity Incr in long term debt 100 Issue of equity 0 Payment of interest -50 Cash flow from financing activity activity 50 Cash during the year 180 Cash at beginning of year 100 Cash at end of year 280Related Questions
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