AFM123 Study Guide - Income Statement, Retained Earnings
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STATEMENT OF CASHFLOWS
A comparative balance sheet for the Last Corporation ispresented below:
Last Corporation | ||
Balance Sheet | ||
December 31, 2014 | ||
2014 | 2013 | |
Assets | ||
Cash | $53,140 | $33,000 |
Accounts Receivable | 19,000 | 22,000 |
Inventory | 20,000 | 12,000 |
Total Current Assets | $92,140 | $67,000 |
Land | $55,000 | $60,000 |
Equipment | 160,000 | 140,000 |
Less Accumulated Depreciation | (60,500) | (50,000) |
Total Non-current Assets | $154,500 | $150,000 |
Total Assets | $246,640 | $217,000 |
Liabilities | ||
Accounts Payable | $31,000 | $25,000 |
Current Portion of Bank Loan | 18,000 | 22,000 |
Total Current Liabilities | $49,000 | $47,000 |
Non-Current portion of Bank Loan | 70,000 | 65,000 |
Total Liabilities | $119,000 | $112,000 |
Shareholders' Equity | ||
Common Shares | $80,000 | $70,000 |
Retained Earnings | 47,640 | 35,000 |
Total Shareholders' Equity | $127,640 | $105,000 |
Total Liabilities and Shareholders' Equity | $246,640 | $217,000 |
Additional information Net income for the year is $34,730. There was no purchase of land, or a gain/loss on sale ofland. There were no sales of equipment. Cash dividends were paid during the year. |
REQUIRED: | |||||||
Prepare the cash flow statement for December 31, 2014 using theindirect method. |
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20 Points | The Clark W Grizwald Holiday Company reported thefollowing financial information for its most recent fiscalyear: | ||||||
Income Statement, for Fiscal Year 2013 | Complete the following table: | ||||||
(in millions) | |||||||
Revenues | $2,500 | Return on assets | |||||
Cost of goods sold | $1,000 | Return on equity | |||||
Selling, general, and administrative expenses | $255 | Gross profit margin | |||||
Earnings before interest and taxes | $1,245 | Net profit margin | |||||
Interest expense | $75 | Equity multiplier | |||||
Earnings before taxes | $1,170 | Dividend yield | |||||
Taxes | $75 | Debt-equity ratio | |||||
Net income | $1,095 | Days sales outstanding | |||||
Inventory turnover | |||||||
Balance Sheet, as of December 31, 2013 | Receivables turnover | ||||||
(in millions) | |||||||
Cash and cash equivalents | $65 | ||||||
Accounts receivable | $55 | ||||||
Inventory | $195 | ||||||
Net plant, property, and equipment | $1,250 | ||||||
Intangible assets | $100 | ||||||
Total assets | $1,665 | ||||||
Current liabilities | $165 | ||||||
Long-term debt | $500 | ||||||
Shareholders' equity | $1,350 | ||||||
Total liabilities and shareholders' equity | $2,015 | ||||||
Additonal information available for the company isalso available: | |||||||
(in millions) | |||||||
Market value of equity | $700 | ||||||
Market value of debt | $400 | ||||||
Dividends | $30 | ||||||
Number of shares outstanding | 10 |