Based on the chart below, prepare the following: Prepare the following: -An inco

Question

Based on the chart below, prepare the following:

Prepare the following:

-An income statement for 2015 and 2016

-A balance sheet for 2015 and 2016

-Operating cash flows for the two years

-Cash flows from assets in 2016

-Cash flows to creditors for 2016

-Cash flows to stockholders for 2016

2015 2016 Cost of Goods Sold    235,942 297,915 Cash      36,542 51,940 Depreciation      61,056 69,011 Interest Expense 13,877 15,905 Selling and Admin Exp 40,952 58,569 Accounts Payable 32,194 33,999 Net Fixed Assets 269,369 328,185 Sales 482,155 587,715 Accounts Receivable 24,120 24,089 Notes Payable 24,866 26,972 Long-Term Debt 142,148 161,000 Inventory 32,766 58,798 New Equity 0 16,000

Explanation / Answer

1)

2)

**Total equity =Total asset -total liabilities

3)Operating cash flow =EBIT +Depreciation -taxes

**since nO tax rate is given ,tax amount cannot be calculates

2015 :OCF = 144205+61056-0

       =205261

2016 :OCF = 162220+69011-0 =231231

4)**capital spending = ending fixed asset+ depreciation 2016 -beginning FA

         = 328185+69011-269369=127827

Working capital beginning = current asset -current liabilites

    = 93428-32194-24866

    = 36368

Ending working capital = 134827-33999-26972=73856

    Addition to NWC = 73856-36368 = 37488

Cash flows from assets in 2016 :operating cash Flow 2016 - Capital spending -addition to NWC

          = 231231 - 127827 - 37488

              = $ 65916

5)Cash flows to creditors for 2016 =Interest - [ending long term debt -beginning LTD]

      = 15905-[ 161000-142148]

      = 15905 -18852

     - 2947

6)Cash flows to stockholders for 2016 = cash flow from asset -cash flow to creditors

                  = 65916 - (-2947)

                  = 65916 +2947

                   = $ 68863

Income statement 2015 2016 Revenue 482155 587715 less:cost of goods sold (235942) (297915) Gross margin 246213 289800 less:Operating expense Depreciation expense (61056) (69011) Selling and Admin Exp (40952) (58569) Earning before Interest and tax 144205 162220 Less:Interest expense (13877) (15905) Earning before tax 130328 146315

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.