Question

In: Accounting

Based on the chart below, prepare the following: Prepare the following: -An income statement for 2015...

Based on the chart below, prepare the following:

Prepare the following:

-An income statement for 2015 and 2016

-A balance sheet for 2015 and 2016

-Operating cash flows for the two years

-Cash flows from assets in 2016

-Cash flows to creditors for 2016

-Cash flows to stockholders for 2016

2015 2016
Cost of Goods Sold    235,942 297,915
Cash      36,542 51,940
Depreciation      61,056 69,011
Interest Expense 13,877 15,905
Selling and Admin Exp 40,952 58,569
Accounts Payable 32,194 33,999
Net Fixed Assets 269,369 328,185
Sales 482,155 587,715
Accounts Receivable 24,120 24,089
Notes Payable 24,866 26,972
Long-Term Debt 142,148 161,000
Inventory 32,766 58,798
New Equity 0 16,000

Solutions

Expert Solution

1)

Income statement
2015 2016
Revenue 482155 587715
less:cost of goods sold (235942) (297915)
Gross margin 246213 289800
less:Operating expense
Depreciation expense (61056) (69011)
Selling and Admin Exp (40952) (58569)
Earning before Interest and tax 144205 162220
Less:Interest expense (13877) (15905)
Earning before tax 130328 146315

2)

Balance sheet
2015 2016
Asset
current asset
cash 36542 51940
Accounts receivable 24120 24089
Inventory 32766 58798
Total current asset 93428 134827
Net fixed asset 269369 328185
Total asset 362797 463012
Liabilities and stockholders equity
currentLiabilities
Accounts payable 32194 33999
Note payable 24866 26972
Long term debt 142148 161000
Total liabilities 199208 221971
Total equity [ 163589 [362797Total asset-199208] 241041     [463012-221971]
Total liabilities and equity 362797 463012

**Total equity =Total asset -total liabilities

3)Operating cash flow =EBIT +Depreciation -taxes

**since nO tax rate is given ,tax amount cannot be calculates

2015 :OCF = 144205+61056-0

       =205261

2016 :OCF = 162220+69011-0 =231231

4)**capital spending = ending fixed asset+ depreciation 2016 -beginning FA

         = 328185+69011-269369=127827

Working capital beginning = current asset -current liabilites

    = 93428-32194-24866

    = 36368

Ending working capital = 134827-33999-26972=73856

    Addition to NWC = 73856-36368 = 37488

Cash flows from assets in 2016 :operating cash Flow 2016 - Capital spending -addition to NWC

          = 231231 - 127827 - 37488

              = $ 65916

5)Cash flows to creditors for 2016 =Interest - [ending long term debt -beginning LTD]

      = 15905-[ 161000-142148]

      = 15905 -18852

     - 2947

6)Cash flows to stockholders for 2016 = cash flow from asset -cash flow to creditors

                  = 65916 - (-2947)

                  = 65916 +2947

                   = $ 68863

ekkarill92 answered 2 years ago
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