In: Finance
Use the balance sheet and income statement below to prepare a statement of cash flows for Valium’s Medical Supply Corporation. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
VALIUM’S MEDICAL SUPPLY CORPORATION | ||||||||||||||||
Balance Sheet as of December 31, 2018 and 2017 | ||||||||||||||||
(in thousands of dollars) | ||||||||||||||||
Assets | 2018 | 2017 | Liabilities and Equity | 2018 | 2017 | |||||||||||
Current assets: | Current liabilities: | |||||||||||||||
Cash and marketable securities | $ | 79 | $ | 78 | Accrued wages and taxes | $ | 60 | $ | 48 | |||||||
Accounts receivable | 192 | 188 | Accounts payable | 153 | 148 | |||||||||||
Inventory | 318 | 298 | Notes payable | 138 | 138 | |||||||||||
Total | $ | 589 | $ | 564 | Total | $ | 351 | $ | 334 | |||||||
Fixed assets: | Long-term debt | $ | 594 | $ | 570 | |||||||||||
Gross plant and equipment | $ | 1,094 | $ | 896 | Stockholders’ equity: | |||||||||||
Less: Accumulated depreciation | 160 | 120 | Preferred stock (6 thousand shares) | $ | 6 | $ | 6 | |||||||||
Net plant and equipment | $ | 934 | $ | 776 | Common stock and paid-in surplus (100 thousand shares) | 120 | 120 | |||||||||
Other long-term assets | 148 | 148 | Retained earnings | 600 | 458 | |||||||||||
Total | $ | 1,082 | $ | 924 | Total | $ | 726 | $ | 584 | |||||||
Total assets | $ | 1,671 | $ | 1,488 | Total liabilities and equity | $ | 1,671 | $ | 1,488 | |||||||
VALIUM’S MEDICAL SUPPLY CORPORATION | |||||||
Income Statement for Years Ending December 31, 2018 and 2017 | |||||||
(in thousands of dollars) | |||||||
2018 | 2017 | ||||||
Net sales | $ | 906 | $ | 816 | |||
Less: Cost of goods sold | 396 | 359 | |||||
Gross profits | $ | 510 | $ | 457 | |||
Less: Other operating expenses | 54 | 48 | |||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | $ | 456 | $ | 409 | |||
Less: Accumulated depreciation | 40 | 38 | |||||
Earnings before interest and taxes (EBIT) | $ | 416 | $ | 371 | |||
Less: Interest | 55 | 49 | |||||
Earnings before taxes (EBT) | $ | 361 | $ | 322 | |||
Less: Taxes | 138 | 118 | |||||
Net income | $ | 223 | $ | 204 | |||
Less: Preferred stock dividends | $ | 6 | $ | 6 | |||
Net income available to common stockholders | $ | 217 | $ | 198 | |||
Less: Common stock dividends | 75 | 75 | |||||
Addition to retained earnings | $ | 142 | $ | 123 | |||
Per (common) share data: | |||||||
Earnings per share (EPS) | $ | 2.17 | $ | 1.98 | |||
Dividends per share (DPS) | $ | 0.75 | $ | 0.75 | |||
Book value per share (BVPS) | $ | 7.20 | $ | 5.78 | |||
Market value (price) per share (MVPS) | $ | 8.23 | $ | 6.26 | |||
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Statement of Cash Flows for Year Ending December 31,
2018 (In thousands of dollars) |
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Cash flows from operating activities | ||
Net income | 223 | |
Additions (sources of cash): | ||
Depreciation | 40 | |
Increase in accounts payable | 5 | |
Increase in accrued wages and taxes | 12 | |
Subtractions (uses of cash): | ||
Increase in accounts receivable | 4 | |
Increase in inventory | 20 | |
Net cash flow from operating activities | 256 | |
Cash flows from investing activities | ||
Subtractions: | ||
Increase in fixed assets | 198 | |
Increase in other long-term assets | 0 | |
Net cash flow from investing activities | -198 | |
Cash flows from financing activities | ||
Additions: | ||
Increase in common and preferred stock | 0 | |
Increase in long-term debt | 24 | |
Increase in notes payable | 0 | |
Subtractions: | ||
Common stock dividends | 75 | |
Preferred stock dividends | 6 | |
Net cash flow from financing activities | -57 | |
Net change in cash and marketable securities | 1 |
WORKINGS