There are two questions! 1.) Company XYZ Balance Sheet (In Millions) Jan. 1 Dec.
ID: 2699026 • Letter: T
Question
There are two questions!
1.)Company XYZ Balance Sheet (In Millions) Jan. 1 Dec. 31
ASSETS
Source Use
Cash $25 $20 _____ _____
Mkt. Sec. 30 22 _____ ______
Acct. Rec. 50 60 _____ _____
Inventory 120 150 _____ ____
Total Curr. Assets $225 $252 _____ _____
Gross Fixed Assets $155 $170 _____ ___
Less: Accum. Dep. (47) (55) _____ _____
Net Fixed Assets $108 $115 _____ _____
Total Assets $333 $367
LIABILITIES
Accounts Payable $41 $35 _____ _____
Notes Payable 30 15 _____ ____
Other Liabilities 19 35 _____ _____
Long Term Debt 21 25 _____ ____
Total Liabilities $111 $110
OWNERS EQUITY
Common Stock $83 $83 _____ _____
Retained Earnings 139 174 _____ _____
Total Equity $222 $257
Total Liab. & OE $333 $367
During the year XYZ purchased an additional $15million worth of fixed assets. The charge for depreciation in 2000 was $8 million. In addition, earnings after tax amounted to 70 million, and the company paid out 35 million in dividends. Based on the above information, prepare a 2000 statement of cash flows for XYZ.
2) The 1999 Balance Sheet for ABC Corporation is shown below:
Assets 1999 Liabilities 1999
Cash $10,000 Accounts Payable $ 8,000
Accounts Receivable 20,000 Accruals 2,000
Inventory 40,000 Total Current Liabilities $10,000
Total Current Assets $70,000 Bonds $30,000
Net Fixed Assets $150,000 Total Liabilities $40,000
Owners Equity
Common Stock $100,000 Retained Earnings 80,000
Total Assets $220,000 Total Liab.& OE $220,000
The firm is currently operating at 100% capacity with sales of $100,000. Management believes that next year sales will increase by 10% and it is anticipating that the firms profit margin will remain at 20%. The dividend payout for next year will be 45%. In the year 2,000 what will the firms additional funds needed be? (In answering this question you must prepare a pro forma balance sheet.)
Explanation / Answer
this link has a pdf file having your answer so please go to
www.csus.edu/indiv/k/kuhlej/finance%20101/1.docx
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