a.Prepare a cash flow statement for the following information.
b.Include a cash reconciliation statement.
Jan 1Dec 31
Accounts Receivable, net290,000330,000
Total Current Assets5,000,0006,230,000
Total Fixed Assets, net2,500,0002,000,000
Total Assets 7,500,0008,230,000
LIABILITIES & EQUITIES
Total Current Liabilities3,000,0002,800,000
Total Long-term Liabilities1,000,0001,500,000
Capital in Excess of Par1,000,0001,000,000
Total Stockholders Equity3,500,0003,930,000
Total Liabilities and Equity7,500,0008,230,000
Income Statement (for ques 1)
Question 2Table 5-1
Income StatementBalance Sheet
Cost of Goods Sold8,000,000Cash$5,000,000
Selling and Administrative1,600,000Accounts Receivable, net2,500,000
Interest2.000,000Plant & Equipment30,000,000
Taxes (40%)2,160,000Total Assets85,000,000
Common Stock Div.600,000Liabilities and Equity:
$2,640,000Accounts Payable $20,000,000
Capital in Excess of Par10,000,000
Total Liabilities and
Shares outstanding of common stock = 1,000,000
Market price of common stock = $18.
Use Table 5-1 for the following 15 questions.
2-1.The Current Ratio is:
2-2.The Net Profit margin is:
2-3.The Quick Ratio is:
2-4.The Times Interest Earned ratio is:
2-5.The Earnings Per Share is:
2-6.The Gross Profit Margin is:
2-7.The Total Debt to Total Asset ratio is:
2-8.Return on Assets ratio is:
2-9.The Total Asset Turnover ratio is:
2-10.The Operating Profit Margin is:
2-11.The Average Collection Period (365 day year) is:
2-12.The Market to Book ratio is:
2-13.The Debt to Equity ratio is:
2-14.The Inventory Turnover ratio is:
2-15.The Return on Equity is:
Oleans, Inc. projects sales to be $100,000; $90,000; $95,000 during the months of
August, September, and October respectively.Salaries are projected to be $12,000 plus
5% of sales.Purchases are 50% of sales for the month and paid in the month of purchase.
A tax payment of $60,000 and an equipment purchase of $20,000 will be made in
September.Transactions are for cash, and a ($20,000) cash balance starts the month
of August.The firm maintains a minimum target end of month balance of $6,000.There
is no limit as to how high the cash balance can be.
Calculate the ending cash balance after any deficit is financed to achieve the target level
for each of the three months.
Following is the balance sheet for the end of the year 2013 for Silver Spurs, Inc.:
Net Fixed Assets20,000
Accounts Payable$ 2,000
They have generated sales for 2013 of $35,000 resulting in net income of $15,000.Due to the difficulty associated with acquiring raw materials, Silver Spurs has experienced sluggish business that has caused fixed assets to be underutilized.Management thinks it can double sales in 2014 through the introduction of a new product.No new fixed assets will be required and the dividend payout ratio will be 100%.Assume no additional deprecation expense will be taken in 2014.Project next year’s balance sheet in the space provided above to determine the additional funding needed (AFN) for this new product.Assume notes payable at the end of 2013 are paid off in 2014.