Complete the missing balance sheet entries for Travers & Co.\'s balance sheets f

Question

Complete the missing balance sheet entries for Travers & Co.'s balance sheets for the years ending 2004 and 2005 based on the following statements Travers issued $30 million of new common stock Travers had net income available to common shareholders of $77 million during 2005. At the end of 2005, Travers paid out $61 million in common dividends Travers neither issued nor retired long-term debt during 2005 In 2005, Travers had cash flows from operating activities of $147 million, cash flow from investing activities of -$80 million, and cash flow from financing activities of -$16 million BALANCE SHEET Millions of dollars) Yr 1 Yr 2 Cash Accounts receivable Inventories 10 140 210 360 Accounts payable Notes payable Accrued liabilities $ 118 67 62 $100 52 50 $ 202 150 170 190 Total current assets Total current liabilities$ 247 Long-term debt Total liabilities Preferred stock Common stock Retained earnings 50 208 258 610 Net fixed assets 280 $ 250 Total common equity Total liabilities and equity Total assets | $ 610

Explanation / Answer

610

Cash flow from operating Activities 147

Cash flow from Investing Activities -80

Cash flow from financing Activities -16

Changes in Cash Flow 51

Cash for Year 1 (2004) 10

Cash for Year 2 (2005) 61

No changes in Long term debt hence 150

Common stock issued 30 hence it will be 80 (50+30) for year 2

Net profit after payment of dividend 77-61 = 16

Hence retained earning for year 2 is 208+16= 224

Firm's Net Profit Margin is = (Net Profit * 100)/Total Revenue

(112*100)/1450 = 7.72%

Diluted EPS = Net Income Available to shareholders/Adjusted Number of Common shares

= 112/38.50

= 2.91

Year 2 Year 1 Year 2 Year 1 Cash 61 10 Accounts Payable 118 100 Accounts Receivable 170 140 Notes Payable 67 52 Inventories 190 210 Accrued Liabilities 62 50 Total Current Assets 421 360 Total Current Liablities 247 202 Long Term Debt 150 150 Total Liabilities 397 352 Net Fixed Assets 280 250 Preffered Stock Common Stock 80 50 Retained Earnings 224 208 Common Equity 304 258 Total Assets 701 610 Total Liabilities and Equity 701

610

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