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For Year 2011 For Year 2012 Cost of Goods Sold $168,200 $199,500 Cash $22,900 as

ID: 2649443 • Letter: F

Question

For Year 2011                                     For Year 2012

Cost of Goods Sold                                 $168,200                                              $199,500

Cash                                                       $22,900 as of 12/31                              $28,137 as of 12/31

Interest Paid                                             $9,899                                               $11,704

Selling & Gen Admin Expenses               $22,100                                             28,800

Fixed Assets net of Depreciation      $150,750 as of 12/31                               $197,115 as of 12/31

Annual Net Sales                                     $290,000                                            $332,500

Depreciation                                             $31,400                                               $41,000

Accounts Receivable                              $12,712                                                 $17,308

Accounts Payable                                    $26,725                                                $31,003

Notes Payable                                          $11,270                                              $12,305

Inventory                                                   $25,877                                               $31,667

Long term Debt                                        $64,950                                                $77,150

New Equity                                                  $0                                                     $15,636

Dividend Payout Percentage                  20%                                                        20%    

Tax rate                                                     30%                                                        30%

Number of days in the year                        365                                                         365

Prepare the following Statements

1) Income Statement for both the years

2) Balance sheet as of 12/31 for both the years

3) Statement of Cash Flows for 2012

Explanation / Answer

Income statement for both the years Particulars Year 2011 Year 2012 Sales        2,90,000        3,32,500 Less: Cost of goods sold        1,68,200        1,99,500 Gross Profit        1,21,800        1,33,000 Less: Selling and general administration expenses            22,100            28,800 Less: Depreciation            31,400            41,000 Earning before interest and tax            68,300            63,200 Less: Interest paid              9,899            11,704 Earning before tax            58,401            51,496 Less: Tax rate @ 30%            17,520            15,449 Profit available for equity            40,881            36,047 Less : Dividend paid @ 20%              8,176              7,209 Balance carried to balance sheet            32,705            28,838 Balance sheet for both the years Particulars Year 2011 Year 2012 Liabilities and equities Equity 76589 92226 Reserves and surplus 32705 61543 Long term debt 64950 77150 Notes payable 11270 12305 Accounts payable 26725 31003 Total 212239 274227 Assets Fixed assets 150750 197115 Cash 22900 28137 Inventory 25877 31667 Accounts receivable 12712 17308 Total 212239 274227

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