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2008 2009 Sales 7233 8085 Depreciation 1038 1085 Cost of goods sold 2487 2942 Ot

ID: 2671248 • Letter: 2

Question

2008 2009
Sales 7233 8085
Depreciation 1038 1085
Cost of goods sold 2487 2942
Other expenses 591 515
Interest 485 579
Cash 3792 4041
Accounts receivable 5021 5892
Short term notes Payable 732 717
Long-term notes Payable 12700 15435
Net Fixed Asset 31805 33921
Accounts Payable 3984 4025
Inventory 8927 9555
Dividends 882 1011

Financial Statements: Draw up an income statement and balance sheet for this company for 2008 and 2009

Calculating cash flow: For 2009, calculate the cash flow from assets, cash flow to creditors and cash flow to stockholder

Explanation / Answer

The company 2009 operating cash flow

Earnings before interest and taxes                            3543

+Depreciation                                                         1085

-Taxes                                                 1008

Operating cash flow                                       3620

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The 2009 net capital spending

Ending net fixed assets                                    33921

-Beginning net fixed assets                               31805

+Depreciation                                            1085

Net capital spending                                      3201

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2009 Change in NWC

Ending NWC                                         14746

-Beginning NWC                                       13024

Chang in NWC                                         1722

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The company 2009 cash flow from assets

Operating cash flow                                     3620

-Net capital spending                                    3201

-Chang in NWC                                        1722

Cash flow from assets                                   -1303

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The company 2009 cash flow to creditors

Interest paid                                           579

-Net new borrowing                                     2735

Cash flow to creditors                                   -2156

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The company 2009 cash flow to stockholders

Dividends                                            1011

-Net new equity raised                                  158

Cash flow to stockholders                                853