Question

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 Total $ 367 $ 343 Fixed assets: Long-term debt $ 612 $ 576 Gross plant and equipment $ 1,103 $ 902 Stockholders’ equity: Less: Accumulated depreciation 166 123 Preferred stock (6 thousand shares) $ 6 $ 6 Net plant and equipment $ 937 $ 779 Common stock and paid-in surplus (100 thousand shares) 120 120 Other long-term assets 154 154 Retained earnings 585 461 Total $ 1,091 $ 933 Total $ 711 $ 587 Total assets $ 1,690 $ 1,506 Total liabilities and equity $ 1,690 $ 1,506 VALIUM’S MEDICAL SUPPLY CORPORATION Income Statement for Years Ending December 31, 2021 and 2020 (in thousands of dollars) 2021 2020 Net sales $ 912 $ 822 Less: Cost of goods sold 399 362 Gross profits $ 513 $ 460 Less: Other operating expenses 57 51 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 456 $ 409 Less: Accumulated depreciation 43 41 Earnings before interest and taxes (EBIT) $ 413 $ 368 Less: Interest 58 52 Earnings before taxes (EBT) $ 355 $ 316 Less: Taxes 75 66 Net income $ 280 $ 250 Less: Preferred stock dividends $ 6 $ 6 Net income available to common stockholders $ 274 $ 244 Less: Common stock dividends 150 150 Addition to retained earnings $ 124 $ 94 Per (common) share data: Earnings per share (EPS) $ 2.74 $ 2.44 Dividends per share (DPS) $ 1.50 $ 1.50 Book value per share (BVPS) $ 7.05 $ 5.81 Market value (price) per share (MVPS) $ 8.08 $ 6.29 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.)

Answer 1