Sunset Boards currently pays out 50% of net income as dividends and has a 20% ta
ID: 2703010 • Letter: S
Question
Sunset Boards currently pays out 50% of net income as dividends and has a 20% tax rate.
COGS 2013: $169,969 / 2014: $214,607
Cash 2013: 24,524 / 2014: 26,056
Depreciation 2013: 47,980 / 2014: 54,230
Interest Expense 2013: 10,442 / 2014: 11,954
Selling & Admin Expenses 2013: 33,425 / 2014: 43,626
Accounts Payable 2013: 43,344 / 2014: 48,090
Net Fixed Assets 2013: 211,680 / 2014: 264,021
Sales 2013: 333,426 / 2014: 406,427
Accounts Receivable 2013: 17,378 / 2014: 22,542
Notes Payable 2013: 19,757 / 2014: 21,571
Long-term Debt 2013: 106,848 / 2014: 119,976
Inventory 2013: 36,570 / 2014: 50,185
New Equity 2013: 0 / 2014: 20,160
Prepare:
1. An income statement for 2013 & 2014
2. A balance sheet for 2013 & 2014
3. Operating cash flow for each year
4. Cash flow from assets for 2014
5. Cash flow to creditors for 2014
6. Cash flow to stockholders for 2014
How would you describe Sunset Boards' cash flows for 2014?
Explanation / Answer
Income statement
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2013 2014
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Sales $333,426 $406,427
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Cost of goods sold 169,969 214,607
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Selling & administrative 33,425 43,626
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Depreciation 47,980 54,23
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0EBIT $82,052 $93,964
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Interest 10,442 11,954
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EBT $71,610 $82,010
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Taxes 14,322 16,402
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Net income $57,288 $65,608
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Dividends $28,644 $32,804
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Addition to retained earnings 28,644 32,804
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