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Comparative Balance Sheets Current Year Prior Year Source/Use Assets 78,000.00 6

ID: 2818905 • Letter: C

Question

Comparative Balance Sheets Current Year Prior Year Source/Use Assets 78,000.00 603,000.00 1,254,000.00 86,400.00 526,800.00 1,072,800.00 1,935,000.00 1,686,000.00 (8,400.00) Account Receivable Inventory 181,200.00 U Total Current Assets Fixed Assets 736,500.00 219,300.00 517,200.00 54,000.00 U 30,000.00 Less: Accumulated Depreciation 249,300.00 541,200.00 Net Fixed Assets TOTAL ASSETS 2,476,200.00 2,203,200.00 Liabilibities Accounts Payable Notes Payable Accruals 262,800.00 337,500.00 210,000.00 810,300.00 218,400.00 00,000.00 204,000.00 722,400.00 44,400.00 S 37,500.00 S 6,000.00 S Total Current Liabilities Long Term Debt 485,148.00 1,447218.00 1,207,548.00 636,918.00 151,770.00 S Total Liabilities Common Stock Retained Earnings 690,000.00 338,982.00 1,028,982.00 690,000.00 305,652.00 995,652.00 Total Equity TOTAL LIABILITIES AND EQUITY 2,476,200.00 2,203,200.00 Comparative Income Statements Current Year Prior Year Sales 5,782,000.005,260,255.00 4,296,000.00 964,255.00 Cost of Goods Sold 4,875,000.00 907,000.00 Gross Profit Selling, General and Admin Exp. Depreciation 645,450.00 30,000.00 231,550.00 28,350.00 325,905.00 Operating Profit (EBIT) Interest Expense 114,000.00 93,750.00 232,155.00 arnings B4 Taxes 117,550.00 47,020.00 70,530.00 92,862.00 139,293.00 Tax (@40%) NET INCOME Dividend Payment 37,200.00 Cash Flow Statement CF Operations Net Income Depreciation Expense Changes in NWC in Inventory in Accruals Net Cash Flow from Operations CF Investing Purchased Equipment Net Cash Flow from Investing CF Financing in LTD Paid CS Dividend Net Cash Flow from Financing Total Net Cash Flow

Explanation / Answer

Cash Flow Statement

                                             For the year ended ......

                                              Particulars

$

$

I. Cash flow from Operating Activities

Net income

70,530

Add: Non-cash and non-operating expenses and losses:

          Depreciation expense

30,000

                    Operating profit before working capital changes

214,530

Add: Increase in current liabilities

          Increase in current assets

                              Net cash generated from Operating Activities

45,030

II. Cash flow from Investing Activities

        Purchase of fixed assets

-54,000

                               Net cash used in Investing Activities

-54,000

III. Cash flow from Financing Activities

         Issue of Debentures

151,770

Cash dividend paid

- 37,200

Interest paid

- 114,000

        Net cash generated from Financing Activities                                                           

570

     Net increase in Cash and Cash Equivalents(I +II +III)

- 8,400

Add: Cash and cash equivalents in the beginning of the period

86,400

         Cash and cash equivalents at the end of the period

78,000

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                                              Particulars

$

$

I. Cash flow from Operating Activities

Net income

70,530

Add: Non-cash and non-operating expenses and losses:

          Depreciation expense

30,000

Interest expense 114,000

                    Operating profit before working capital changes

214,530

Add: Increase in current liabilities

Accounts payable 44,400 Notes payable 37,500 Accruals 6,000

          Increase in current assets

Accounts receivable -76,200 Inventories -181,200

                              Net cash generated from Operating Activities

45,030

II. Cash flow from Investing Activities

        Purchase of fixed assets

-54,000

                               Net cash used in Investing Activities

-54,000

III. Cash flow from Financing Activities

         Issue of Debentures

151,770

Cash dividend paid

- 37,200

Interest paid

- 114,000

        Net cash generated from Financing Activities                                                           

570

     Net increase in Cash and Cash Equivalents(I +II +III)

- 8,400

Add: Cash and cash equivalents in the beginning of the period

86,400

         Cash and cash equivalents at the end of the period

78,000

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