Two years ago, Statesboro was selected as the location for the newest NFL team,
ID: 2384457 • Letter: T
Question
Two years ago, Statesboro was selected as the location for the newest NFL team, the Georgia Peach Bums. The Peach Bums have a multiple owner/publicly traded corporation ownership model. As part of this model, the investors purchased 25,000,000 shares of common stock at $1 per share. Unfortunately, they have lost all of their financial statements from 2014.
Please use the following accounts and balances to create a Balance Sheet as of 12/31/2014 (ending balances only) and an Income Statement for the Year Ended 2014. Make a table with professional quality. Indicate the date and categories clearly.
*All amounts in millions (USD)
Accounts Payable $3
Accounts Receivable, net $3
Accrued expenses $2
Capital Lease Obligations $5
Cash $4
Common Stock $25
Cost of Goods Sold $5
Intangible Assets $3
Interest Income (Expense) -$4
Inventories $6
Net Revenue $35
Other Long-term Liabilities $1
Other Non-current Assets $4
Property and Equipment, net $25
Retained Earnings $4
Revolving Credit (Loan) $5
Selling G&A $23
Taxes $1
Additionally, please create a Statement of Cash Flows for the Year Ended 2014 using the following information:
*All amounts in millions (USD)
Accounts Payable $1
Accounts Receivable $3
Depreciation $5
Inventories ($1)
Net Income $2
Payments of Long-term debt ($4)
Proceeds from sale of equipment $6
Process from stock issuance $8
Purchase of Property & Equipment ($18)
Explanation / Answer
Income Statement for the Year ended 2014 Details In Mn Net Revenue 35.00 Less Cost of Goods Sold -5.00 Gross Margin 30.00 Selling & GA 23.00 Operating Income 7.00 Interest Expense 4.00 Income Before Tax 3.00 Taxes 1.00 Income After Tax 2.00 Balance Sheet as on 2014 Assets Cash 4.00 Accounts Receivable (Net) 3.00 Inventories 6.00 Total Current Assets 13.00 Property and Equipment, net 25.00 Intangible Assets 3.00 Other Non-current Assets 4.00 Total Non-Current Assets 32.00 Total Assets 45.00 Liabilities Accounts Payable 3.00 Accrued expenses 2.00 Revolving Credit (Loan)( Assumed to be Working Capital) 5.00 Total Current Liabilities 10.00 Capital Lease Obligations 5.00 Other Long-term Liabilities 1.00 Total Long term Liabilities 6.00 Retained Earnings 2.00 Add:Current Year income 2.00 Retained Earnings at the end 4.00 Common Stock 25.00 Total Liabilities and common stock 45.00 Cash Flow Statement for the year 2014 In Mn In Mn Net Income 2.00 Add: Depreciation 5.00 Add: Interest Expense 4.00 Changes in Working capital Accounts Payable 1.00 Accounts Recevable 3.00 Inventories -1.00 Cash flow from Operating activities 14.00 Purchase of Property & Equipment -18.00 Proceeds from sale of equipment 6.00 Cash used in Financing activities -12.00 Payments of Long-term debt -4.00 Interest Expense -4.00 Process from stock issuance 8.00 Cash from(Used) in Financing activities - Increase in cash and Cash equivalents 2.00 Cash at the begiining ( Assumed Figure) 2.00 Cash at the End 4.00
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