Question

1	a	b	c
2	Aspen Industries INCOME STATEMENT
3
4		2004	2003
5	sales	285000	190,000
6	cost of goods sold	215000	143000
7	g. profit	70000	47000
8	operating expenses
9	variable expenses	28500	19000
10	fixed exp.	21000	20000
11	depreciation	10000	4500
12	total	59500	43500
13	EBIT	10500	3500
14	INTEREST EXP.	6100	3000
15	EBT	4400	500
16	TAXES	1540	175
17	NET INCOME	2860	325
18
19	NOTE
20	TAX RATE	35%
21	PAYOUT RATON	30%
22	DIVIDENTS	858

	A	b	c
	BALANCE SHEET
4	2003	2004
5	ASSETS
6	Cash	4,000	9,000
7	Accounts Receivable	16,000	12,500
8	Inventories	42,500	29,000
9	TOTAL C.A.	62500	50,500
10	Land	26,000	20,000
11	Buildings and Equipment	100,000	70,000
12	Accumulated Depreciation	(38,000)	(28,000)
13	Total Fixed Assets	88,000	62,000
14	Total Assets	150,500	112,500
15
16	Liabilities and Owner's Equity
17	Accounts Payable	22,298	10500
18	Short-term Bank Notes	47,000	17000
19	Total Current Liabilities	69,298	27,500
20	Long-term Debt	22,950	28,750
21	Common Stock	31,500	31,500
22	Retained Earnings	26,752	24,750
23	Total Liabilities and Owner's Equity	150,500	112,500

a. (6 points) Re-create the income statement and balance sheet using formulae wherever possible. Each statement should be on a separate worksheet. Try to duplicate the format exactly.

b. (4 points) On another worksheet, create a statement of cash flows for 2004. Do not enter any numbers directly on this worksheet. All formulae should be linked directly to the source on previous worksheets.

c. (1 point) Using Excel’s outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section.

d. (2 points) Suppose that sales were $320,000 in 2004 rather than $285,000 (all other information remains unchanged). What is the 2004 net income and retained earnings?

e. (2 points) Undo the changes from Part d, and change the tax rate to 40% (all other information remains unchanged). What is the 2004 net income and retained earnings?

Answer 1