Question

Using the table below create SinCo's Income Statement for 2013 and 2014.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

	2013	2014
Revenue	$4,000	5252
Cost of Good Sold	1,600	2,101
Depreciation	500	524
Inventory	300	335
SG&A	500	534
Interest Expenses	150	175
Common Stock and Paid-in Capital	2,200	2,200
Federal and State Taxes (35% of EBT)	400
Accounts Payable	300	354
Accounts Receivable	400	424
Net Fixed Assets	5,000	4962
Retained Earnings (Balance Sheet)	1,000
Long-Term Debt	2,000	2481
Notes Payable	1,000	1016
Dividends Paid	410	410
Cash	800

What is SinCo's EBITDA for 2014?
What is SinCo's EBIT for 2014?
What is SinCo's Net Income for 2014?

Now uses the above table to create an Balance Sheet for 2013 and 2014

What is SinCo's 2014 Retained Earnings
What is Total Liabilities and Shareholders Equity
What is SinCo's Total Assets
What is SinCo's 2014 Cash
What is SinCo's 2014 Total Current Assets

Use SinCo's Income Statement and Balance Sheet to create a Statement of Cash Flows for 2014.

What is SinCo's Cash Flow from Operations
What is SinCo's Cash Flow from Investments
What is SinCo's Provide by Financing Actives
What is SinCo's Net change in cash
What is SinCo's Ending Cash Balance

Does the 2014 Cash Balance from the Balance Sheet equal the Ending Cash Balance from the Statement of Cash Flows?  TrueFalse

Answer 1

Income statement for the year 2014

Particulars	Amount
Revenue	5252
Cost Of Goods Sold	(2101)
SG&A	(534)
EBIDTA	2,617
Depreciation	(524)
EBIT	2,093
Interest	(175)
EBT	1,918
Tax @ 35%	(671.3)
Net Income	1,246.7
Dividends Paid	(410)
Income Available to Shareholders	836.7
(Retained Earnings)

EBIDTA - $2,617

EBIT - $2,093

Net Income - $1,246.7

Balance Sheet - 2013

Assets	Amount	Liabilities	Amount
Cash	800	Accounts Payable	300
Inventory	300	Long term Debt	2000
Accounts Receivable	400	Notes Payable	1000
Fixed Assets	5000	Common Stock	2200
		Retained Earnings	1000
Total	6500	Total	6500

Balance Sheet - 2014

Assets	Amount	Liabilities	Amount
Cash (Balance Amount)	2166.7	Accounts Payable	354
Inventory	335	Long term debt	2481
Accounts Receivable	424	Notes Payable	1016
Net Fixed Assets	4962	Common Stock	2200
		Retained Earnings	1836.7
		(1000 + 836.7)
Total	7887.7	Total	7887.7

SinCo's 2014 Retained Earnings - $1836.7 (1000+836.7)

Total Liabilities and Shareholders Equity - $7887.7

Total Assets - $7887.7

Cash - $2166.7

Total Current Assets - $2925.7

Statement of Cash Flows for 2014

Particulars	Amount
Net Income	1246.7
Cash flow from Operations
Depreciation	524
Increase in accounts payable (354 - 300)	54
Increase in Accounts Receivable (524 - 500)	(24)
Increase in Inventory	(35)
Increase in Notes payable (1015 - 1000)	16
	535
Cash flow from investing activities
I
Fixed Assets (5000-524-4962)	(486)
	(486)
Cash flow from Financing Activities
Dividends Paid	(410)
Increase in long term debt (2481-2000)	481
	71
Cash balance	1366.7
Opening balance	800
Closing balance	2166.7

Cash Flow from Operations - $535

Cash Flow from Investments - ($486)

Cash flow from Financing Activities - $71

Ending Cash Balance - $2166.7

Does the 2014 Cash Balance from the Balance Sheet equal the Ending Cash Balance from the Statement of Cash Flows?

TRUE