Alngnmeht XYZ Plumbing - Balance Sheet 2016 2017 2016 2017 ASSETS Cash A/R Inven

Question

Alngnmeht XYZ Plumbing - Balance Sheet 2016 2017 2016 2017 ASSETS Cash A/R Inventory Pre-paid expenses LIABILITIES 1000,000 2530,000 Accounts Payable ,000,000 500,000 Notes Payable 2000,000 2300,000 Current portion of LTD 00,0001,303,000 ,500,000 1000,000 1,000,000 1,000,000 520,000 ,500,000 3,823,000 00,000670,000 Accrued Liablities 500,000 7,000,000 Total Current Liabilities 00,000 0 Total Current Assets 2 Building and Improvements 15.000,000 5000,000 Long-Term Debt ,000,000 12,000,000 3 Equipment 4 ,000,000 7,000,000 20,000,000 2000,000 Stockholder's Equity Common Stock at Par 100,000 100,000 9900,000 9,900,000 00,0002,268,000 Total Stockholder's Equity 10,500,000 12268,000 6 Depreciation 17 Net PP&E; 00,000 1,000,000 Paid in Capital 19500,000 21,000,000 Retained Earnings 19 20 Total Assets 21 24,000,000 28,000,000 Total Liabilities+ Equity 24 000,000 28,091,000 Sheet1 Press ESC to cancel Copy Type here to search

Explanation / Answer

Statement of cash flows 2017 Net Income 1768000 Adjustments Depreciation and amortization 500000 Cash Provided by operating assets and liabilities Accounts receivable -500000 Inventories -300000 Pre-paid expenses -170000 Accounts Payable 803000 Accrued Liabilities 20000 Net cash provided (used) by operating activities 2121000 Cash provided from Investing Activities Additions to property, plant and Equipment -2000000 Net Cash provided (used) by investing activities -2000000 Cash provided from financing activities Additions to long term borrowing 3000000 Additions to short term borrowing -1500000 Net Cash provided (used) by financing activities 1500000 Net Cash flow 1621000 Problem 2 Current Ratio Current asset/current liabilities 7000000/3823000                                 1.83 Accounts Receivable Ratio Sales/Average accounts receivables 12000000/((1000000+1500000)/2) 9.6 Inventory Turnover Cost of sales/Average stock held 4800000/((2000000+2300000)/2)                                 2.23 Revenue to cash Revenue to cash 12000000/2530000                                 4.74 Return on assets Net Income/Total assets 1768000/28000000 6.31% Return on Equity Net Income/Total shareholder's equity 1768000/12268000 14.41% Problem 3 Revenue (Increase of 20% from 2017) 14400000 CGS 5616000 Gross Profit Gross margin increases by 1% from 2017 8784000 7200000/12000000 60.00% 61.00% SG & A Improves by 1% from 2017 2736000 2400000/12000000 20.00% 19% R&D Increases by 10% in total dollars 1100000 Depre % Amortization (Increases by $ 50000) 550000 Total Op. Expenses 4386000 Operating Profit 4398000 Interest Cost $980,000 Interest Income $80,000 Pre- Tax $3,498,000 Tax(21% rate) $734,580 Net Income $2,763,420

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