Question

In: Finance

Use the balance sheet and income statement below to prepare a statement of cash flows for...

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

Statement of Cash Flows for Year Ending December 31, 2018

(in thousands of dollars)

Cash flows from operating activities

Net income

Additions (sources of cash):

Depreciation
Increase in accounts payable
Increase in accrued wages and taxes

Subtractions (uses of cash):

Increase in accounts receivable
Increase in inventory

Net cash flow from operating activities

Cash flows from investing activities

Subtractions:

Increase in fixed assets
Increase in other long-term assets

Net cash flow from investing activities

Cash flows from financing activities

Additions:

Increase in common and preferred stock
Increase in long-term debt
Increase in notes payable

Subtractions:

Common stock dividends
Preferred stock dividends

Net cash flow from financing activities

Net change in cash and marketable securities

Solutions

Expert Solution

Statement of Cash Flows for Year Ending December 31, 2018
(In thousands of dollars)
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


Related Solutions

Problem 1. Balance sheet and statement of cash flows preparation A. Prepare an income statement (multiple...
Problem 1. Balance sheet and statement of cash flows preparation A. Prepare an income statement (multiple step), balance sheet and cash flow statement using the selected financial statement information and additional data for Stanislaus Co. presented below. Balance sheet:                                                  December 31 2015 Cash..........................................................     $52,000                                                Accounts receivable (net)...........................       64,000                                                Inventory..................................................     178,000                                                Land..........................................................       78,800                                                Equipment.................................................     504,000                                                    TOTAL............................................ $876,800                                                Accumulated depreciation..........................     $94,000                                                Accounts payable.......................................       50,400                                                Notes payable - short-term........................       67,200                                                Notes payable -...
Instruction: Prepare a classified balance sheet, multi-step income statement and statement of Cash flows for the...
Instruction: Prepare a classified balance sheet, multi-step income statement and statement of Cash flows for the year ending 12/31/2018 The trial balances for the beginning of the year and End of the year, as well as Additional information, are provided below. The name of the company is: Rockford Plumbing Supply, Inc. Final (Ending) Trial Balance - 12/31/2018 Account Name Debit Credit 101 Cash 431,794 105 Petty Cash 150 112 Accounts Receivable 464,550 113 Allowance for Doubtful Accounts 40,178 115 Notes...
Instruction: Prepare a classified balance sheet, multi-step income statement and statement of Cash flows for the...
Instruction: Prepare a classified balance sheet, multi-step income statement and statement of Cash flows for the year ending 12/31/2018 The trial balances for the beginning of the year and End of the year, as well as Additional information, are provided below. The name of the company is: Rockford Plumbing Supply, Inc. Final (Ending) Trial Balance - 12/31/2018 Account Name Debit Credit 101 Cash 431,794 105 Petty Cash 150 112 Accounts Receivable 464,550 113 Allowance for Doubtful Accounts 40,178 115 Notes...
Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for 2016.
The following transactions apply to Park Co. for 2016: 1. Received $50,000 cash from the issue of common stock. 2. Purchased inventory on account for $180,000. 3. Sold inventory for $250,000 cash that had cost $140,000. Sales tax was collected at the rate of 5 percent on the inventory sold. 4. Borrowed $50,000 from First State Bank on March 1, 2016. The note had a 7 percent interest rate and a one-year term to maturity. 5. Paid the accounts payable...
Instruc(ons Prepare a classified balance sheet, mul(-step income statement and statement of cash flows for the...
Instruc(ons Prepare a classified balance sheet, mul(-step income statement and statement of cash flows for the year ending 12/31/2018. The trial balances for the beginning of the year and end of the year, as well as addi(onal informa(on, are provided in the peach box on the next worksheet. The name of the company is Rockford Plumbing Supply, Inc. Final (Ending) Trial Balance - 12/31/2018 Beginning Trial Balance - post closing 12/31/2017 Account Name Debit Credit Account Name Debit Credit 101...
2. Use the information below to prepare an Income Statement and Balance Sheet for 2011 &...
2. Use the information below to prepare an Income Statement and Balance Sheet for 2011 & 2012. Also include a 40% tax rate expense on your pretax income. 2011 2012 Sales $4,203 $4,507 Cost of Goods Sold 2,422 2,633 Depreciation 785 952 Interest 180 196 Dividends 225 250 Current Assets 2,205 2,429 Net fixed Assets 7,344 7,650 Current Liabilities 1,003 1,255 Long-Term debt 3,106 2,085
Problem 2-30 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: VALIUM’S...
Problem 2-30 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: VALIUM’S MEDICAL SUPPLY CORPORATION Balance Sheet as of December 31, 2021 and 2020 (in thousands of dollars) Assets 2021 2020 Liabilities and Equity 2021 2020 Current assets: Current liabilities: Cash and marketable securities $ 82 $ 81 Accrued wages and taxes $ 66 $ 51 Accounts receivable 195 191 Accounts payable 160 151 Inventory 322 301 Notes payable 141 141 Total $ 599 $ 573...
Problem 2-29 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: CLANCY’S...
Problem 2-29 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below: CLANCY’S DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars) Assets 2021 2020 Liabilities and Equity 2021 2020 Current assets: Current liabilities: Cash and marketable securities $ 2 $ 2 Accrued wages and taxes $ 7 $ 4 Accounts receivable 19 15 Accounts payable 14 12 Inventory 22 20 Notes payable 12 10 Total $ 43 $ 37...
Describe the changes to the balance sheet, income statement, and statement of cash flows for the...
Describe the changes to the balance sheet, income statement, and statement of cash flows for the following transactions: a. billing a client for a completed construction project b. pay invoices for building materials c. labor charged to a job d. paying employees wages e. signing a construction or development loan
Prepare a multistep income statement, a statement of changes in stockholders’ equity, a balance sheet, and a statement of cash flows for year 2.
At the beginning of Year 2, the Redd Company had the following balances in its accounts:Cash$15,300Inventory5,500Land2,300Common stock12,000Retained earnings11,100During Year 2, the company experienced the following events:Purchased inventory that cost $11,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $830 were paid in cash.Returned $600 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.Paid...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT