Question

1. Use the Income Statement and the Balance Sheet in Tables 2.3 and 2.4 to complete the Purcell Diagram for the Financial Flows for the Shawnee Corporation in Figure 2.2. The equipment purchased during the year was 70 and the labor was the same as 2020. Fill in the blanks in Table 2.4 and in the Purcell Diagram of Figure 2.2. Table 2.3: Income statement for Shawnee Corporation for 2021 Income Statement Shawnee Corporation 2021 (End-of-Year) Sales 655 Expenses Cost of Goods Sold 285 Management Costs R&D Expenses Sales Expense 40 60 70 Other Taxes & Fees 20 Depreciation 60 535 Profit Before Tax 120 Taxes (Tax Rate 25%) 30 Net Profit 90 Table 2.4: Balance sheet for Shawnee Corporation for 2021 Balance Sheet Shawnee Corporation (Year 2021) Start End Start End 2021 2021 2021 2021 Liabilities & Equities Assets Current Assets Current Liabilities (1) Accounts Payable Cash 290 20 30 Accounts Receivables 40 60 Inventories Finished Goods 25 30 Work-in-Progress 80 85 Raw Materials 30 40 Owner's Equity Fixed Assets Plant & Equipment (2) Common Stock (4) (5) 110 (3) 575 (6) 575 (1) Customers Cash 290/_(2) (3) Accounts Accounts Suppliers (4)/ Receivable Payable 20/30 655 |Sales 40/60 Depreciation (15) Purchased Equipment (5) Fixed Assets Total 110/120 Costs (6) 7200 Finished Goods WIP Raw Materials (9) 80/ (7) 285 25/30 (8) 30/50 COGS 30 20 (10) 70 Employees 40 40 Management 60 60 R&D Expenses 70 70 Sales Expenses 20 20 Fees & Other Taxers (14)_ (11) Government Income Taxes Net Profits (12)+_ (13). Owner's Equity 575/655 Net Net Profits -20 Dividends Paid to Stockholders Equity Change 20 Value +90 Created (+10 10 Stock Sales Figure 2.2: Purcell diagram for Shawnee Corporation in 2021.