Question

Use the following information to create an income statement and balance sheet for 2018 and 2019;

assume the tax rate is 34%. Then, using those statements, calculate for 2019:

Cash flow from assets, Cash flow to creditors, Cash flow to stockholders

2016 2017

Sales 50,920 56,916

Depreciation expense 7,308 7,640

Cost of goods sold 17,508 20,712

Other expense 4,164 3,624

Interest  expenses 3,416 4,076

Cash 26,696 28,452

Accounts receivables 33,348 41,484

short term notes payables 5,152 5,048

long term debt 89,408 108,396

Net fixed assets 223,908 238,800

Accounts payable 19,288 20,432

Inventory 62,844 67,268

Dividends 6,088 7,120

Answer 1

	INCOME STATEMENT
		2018	2019
	Sales	50920	56916
	Cost of goods sold	17508	20712
	Gross Profit	33412	36204
	Other Expenses	4164	3624
	Earning Before Interest & Taxes& Depreciation	29248	32580
	Depreciation Expense	7308	7640
	Earning Before Interest & Taxes	21940	24940
	Interest expense	3416	4076
	Before Tax Income	18524	20864
	Taxes(34%)	6298	7094
	Net Income	12226	13770
	BALANCE SHEET
		2018	2019
	Assets:
	Cash	26696	28452
	Accounts Receivable	33348	41484
	Inventory	62844	67268
	Total Current assets	122888	137204
	Net Fixed assets	223908	238800
	Total Assets	346796	376004
	Liabilities:
	Accounts Payable	19288	20432
	Short term notes payable	5152	5048
	Total Current Liabilities	24440	25480
	Long Term Debt	89408	108396
	Total Liabilities	113848	133876
	Common Equity	232948	242128
	Total Liabilities and Equity	346796	376004
	CASH FLOW TO STOCKHOLDERS:
	Common Equity in the beginning 2019	232948
	Add: Net Income 2019	13770
	Less : Dividend 2019	-7120
	Common Equity at end of 2019	239598
	Additional Equity Issued in 2019	2530
	Common Equity at end of 2019	242128
	Dividend Payment	7120
	Additional Equity Issued	-2530
	CASH FLOW TO EQUITY HOLDERS	4590
	CASH FLOW TO CREDITORS:
	Decrease Change in Short term Notes Payable	104	(5152-5048)
	Increase in Long Term Debt	-18988	(108396-89408)
	CASH FLOW TO CREDITORS:	-18884
	CASH FLOW FROM ASSET
	Increase in Net Fixed assets	-14892	(238800-223908)
	Depreciation Expenses	-7640
	CASH FLOW FROM ASSET	-22532