Good morning, I am working on the Chapter 2 Case Study (page 51) in my Essential
ID: 2382626 • Letter: G
Question
Good morning,
I am working on the Chapter 2 Case Study (page 51) in my Essentials of Corporate Finance book where they are asking for me to put together an Income Statement and Balance Sheet. I am having difficulty on the Balance sheet for the 2014 year
CHAPTER 2: CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS Income statement 014 S406.427 214.607 54,230 137.590 33.426 6 Sales 7 Cost of goods Sold 8 Depreciation 9 Earnings before interest and Tax 115.477 S10,442 105,035 S35.712 10Interest Expense 125.636 S42.716 11 Taxable Incom 12 Taxes S69.323.10 14 Net Income 15 16 82.919.76 18 Balance sheet as of Dec. 31, 2013 21 Cash 22 Accounts Receivable 23 Inventorv 24 25 26 Net Fixed Assets $24.524 S17.378 S36.570 S78.472 Accounts Pavable Notes Payable Total Current Liabilitie S43.344 S19.757 63,101 Current Assets Long T erm Debt Owners Equity Total Liabities & Equit S106,848 S120,203 290,152 211.680 27 Total Assets 290,152 Balance sheet as of Dec. 31, 2014 31 Cash 32 Accounts Receivable 33 Inventorv S26.056 22.542 0,185 98.783 Accounts Pavable Notes Payable Total Current Liabilitie S48.090 21.571 69,661 Current Assets 35 36 Net Fixed Assets 37 Total Assets S264,021 S362.80 Long T erm Debt Owners Equitv Total Liabities & Equit S119.976 S140,363 S330.000 39 40 41 42 43 Operating Cash Flow for 2013- Operating Cash Flow for 2014-Explanation / Answer
Income statement
Particulares
2013
2013
Net Sales
333426
406427
Cost of Goods sold
169969
214607
Gross profit
163457
191820
Selling & adnin expense
33425
43626
Depreciation
47980
54230
EBIT
82052
93964
Interest
10442
11954
EBT
71610
82010
TAX 20%
14322
16402
Net Income
57288
65608
Balance Sheet
2013
2014
Assets
Current Asset
Cash
24524
26056
Account Payable
17378
22542
Inventory
36570
50185
Total current Asset
78472
98783
fixed asset
Net fixed Asset
211680
264021
Total Asset
290152
362804
Liabilities
Current Liabilities
Account Payable
43344
48090
Notes payable
19757
21571
Total Current Liability
63101
69661
Long term debt
106848
119976
Total Liability
169949
189637
Equity
Owners equity
91559
91559
Contributed equity
20160
Retained earning
28644
61448
505 of NI
120203
173167
Operating cash flow for each year OCF
2013
2014
Net Income
57228
65608
Add depreciation
47980
54230
Operating cash flow
105208
121852
Cash flow from assets for 2014.
NWC2013 = CA – CL = 78,472 - 63,101 = $15,37
NWC2014 = 98,783 - 69,661 = $29,122
CFFA2014
CFFA2014= OCF –NWC-NCS= OCF – (NWC2014 – NWC2013) – ((NFA2014+D2014)-(NFA2013+D2013)= $119,838 – ($29,122 - $15,371) – (( $211,680 + $47,980 ) – ( $264,021 + $54,230 ))= $164,678
Cash flow to creditors
Long term interst expense 2014
11954
Cash flow to stock Holder
50% of net income 65608*.50
32804
Income statement
Particulares
2013
2013
Net Sales
333426
406427
Cost of Goods sold
169969
214607
Gross profit
163457
191820
Selling & adnin expense
33425
43626
Depreciation
47980
54230
EBIT
82052
93964
Interest
10442
11954
EBT
71610
82010
TAX 20%
14322
16402
Net Income
57288
65608
Balance Sheet
2013
2014
Assets
Current Asset
Cash
24524
26056
Account Payable
17378
22542
Inventory
36570
50185
Total current Asset
78472
98783
fixed asset
Net fixed Asset
211680
264021
Total Asset
290152
362804
Liabilities
Current Liabilities
Account Payable
43344
48090
Notes payable
19757
21571
Total Current Liability
63101
69661
Long term debt
106848
119976
Total Liability
169949
189637
Equity
Owners equity
91559
91559
Contributed equity
20160
Retained earning
28644
61448
505 of NI
120203
173167
Operating cash flow for each year OCF
2013
2014
Net Income
57228
65608
Add depreciation
47980
54230
Operating cash flow
105208
121852
Cash flow from assets for 2014.
NWC2013 = CA – CL = 78,472 - 63,101 = $15,37
NWC2014 = 98,783 - 69,661 = $29,122
CFFA2014
CFFA2014= OCF –NWC-NCS= OCF – (NWC2014 – NWC2013) – ((NFA2014+D2014)-(NFA2013+D2013)= $119,838 – ($29,122 - $15,371) – (( $211,680 + $47,980 ) – ( $264,021 + $54,230 ))= $164,678
Cash flow to creditors
Long term interst expense 2014
11954
Cash flow to stock Holder
50% of net income 65608*.50
32804
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