Question

Problem 2-33 Free Cash Flow (LG5) Rebecky’s Flowers 4U, Inc., had free cash flows during 2012 of $62 million, EBIT of $140 million, tax expense paid on its EBIT was $39 million, and depreciation of $29 million. Using this information, calculate the missing amounts on Rebecky’s balance sheet below. (Enter your answers in millions of dollars.) REBECKY’S FLOWERS 4U, INC. Balance Sheet as of December 31, 2012 and 2011 (in millions of dollars) 2012 2011 2012 2011 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 42 $ 39 Accrued wages and taxes $ 37 $ 35 Accounts receivable 108 98 Accounts payable 70 Inventory 141 123 Notes payable 90 90 Total $ 291 $ 260 Total $ $ 195 Fixed assets: Long-term debt: $ $ 314 Gross plant and equipment $ 610 $ 560 Stockholders’ equity: Less: Depreciation 99 70 Preferred stock (5 million shares) $ 6 $ 6 Common stock and paid-in surplus 80 80 Net plant and equipment $ 511 $ 490 (20 million shares) Other long-term assets 90 90 Retained earnings 282 245 Total $ 601 $ 580 Total $ 368 $ 331 Total assets $ 892 $ 840 Total liabilities and equity $ 892 $ 840

Answer 1

Balance Sheet for Rebecky Flowers 4 U Inc. as on Dec 31 20X2 ( in $)
Asset	2012	2011	Liability & Equity	2012	2011
Current Asset			Accrued wages & taxes	37	35
Cash & Marketable securities	42	39	Account Payable ( Note-3)	83	70
Account Receivable	108	98	Notes Payable	90	90
Inventory	141	123
Total Current Asset	291	260	Total Current Liability ( Note-2)	210	195
Fixed Asset
Gross Palnt Equiment	610	560	Long Term Debt	314	314
Less Accumaled Depreciation	99	70	Total Liability ( note-1)	524	509
Net Plant & Equipment	511	490
			Stockholder's Equity
Other long term Asset	90	90	Preferred Stock ( 5 Million Share)	6	6
Total Long Term Asset	601	580	Common Stock ( 20 Million Share)	80	80
			Paid in Capital
			Retained Earning	282	245
			total Equity	368	331
Total Asset	892	840	Total Liability & Equity	892	840
Note:1) Total Liability	=	Total Liability & Equity- Equity
	=	892-368
	=	524
it is persumed that no repayment made for Long term liability during the year and laibility as same as previous period
Hence, Long term Liability will be $ 314
Note-3)Total Current Liability	Total liability-Long term Liability
=	524-314
=	210
Note-3)Account pyable=	Total Current Liability- Accrued wages & Tax-Notes payable
=	210-37-90
=	83