Freiman Corporation's most recent balance sheet and income statement appear below:
Balance Sheet | |||||||||||
December 31, Year 2 and Year 1 | |||||||||||
(in thousands of dollars) | |||||||||||
Year 2 | Year 1 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash | $ | 170 | $ | 130 | |||||||
Accounts receivable, net | 245 | 265 | |||||||||
Inventory | 130 | 140 | |||||||||
Prepaid expenses | 45 | 45 | |||||||||
Total current assets | 590 | 580 | |||||||||
Plant and equipment, net | 750 | 750 | |||||||||
Total assets | $ | 1,340 | $ | 1,330 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 140 | $ | 160 | |||||||
Accrued liabilities | 95 | 95 | |||||||||
Notes payable, short term | 65 | 75 | |||||||||
Total current liabilities | 300 | 330 | |||||||||
Bonds payable | 295 | 305 | |||||||||
Total liabilities | 595 | 635 | |||||||||
Stockholders' equity: | |||||||||||
Common stock, $2 par value | 110 | 110 | |||||||||
Additional paid-in capital | 225 | 225 | |||||||||
Retained earnings | 410 | 360 | |||||||||
Total stockholders' equity | 745 | 695 | |||||||||
Total liabilities & stockholders' equity | $ | 1,340 | $ | 1,330 | |||||||
Income Statement | |||||||||||
For the Year Ended December 31, Year 2 | |||||||||||
(in thousands of dollars) | |||||||||||
Sales (all on account) | $ | 1,510 | |||||||||
Cost of goods sold | 880 | ||||||||||
Gross margin | 630 | ||||||||||
Selling and administrative expenses | 384 | ||||||||||
Net operating income | 246 | ||||||||||
Interest expense | 45 | ||||||||||
Net income before taxes | 201 | ||||||||||
Income taxes (30%) | 60 | ||||||||||
Net income | $ | 141 | |||||||||
The working capital at the end of Year 2 is:
Working capital for year 2 = $290
Calculations
Working capital = Current assets - Current liabilities
Current assets (A) | Current liabilities (B) | Working Capital (C=A-B) |
$ 590.00 | $ 300.00 | $ 290.00 |
Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year...
Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 162 $ 122 Accounts receivable, net 225 245 Inventory 122 132 Prepaid expenses 41 41 Total current assets 550 540 Plant and equipment, net 710 710 Total assets $ 1,260 $ 1,250 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 132 $ 152 Accrued liabilities 91...
Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 160 $ 120 Accounts receivable, net 220 240 Inventory 120 130 Prepaid expenses 40 40 Total current assets 540 530 Plant and equipment, net 700 700 Total assets $ 1,240 $ 1,230 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 130 $ 150 Accrued liabilities 90...
Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: $ 174 $ 134 Cash Accounts receivable, net 255 275 Inventory 134 144 Prepaid expenses 47 47 Total current assets 600 610 Plant and equipment, net 770 770 $1,380 $1,370 Total assets Liabilities and Stockholders' Equity Current liabilities: 144 164 Accounts payable Accrued liabilities 97 97 Notes payable, short...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 170 $ 230 Accounts receivable, net 260 280 Inventory 230 200 Prepaid expenses 20 20 Total current assets 680 730 Plant and equipment, net 880 900 Total assets $ 1,560 $ 1,630 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 200 $ 230 Accrued liabilities 50...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 235 $ 360 Accounts receivable, net 390 410 Inventory 360 330 Prepaid expenses 20 20 Total current assets 1,005 1,120 Plant and equipment, net 1,270 1,420 Total assets $ 2,275 $ 2,540 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 330 $ 360 Accrued liabilities 50...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 235 $ 360 Accounts receivable, net 390 410 Inventory 360 330 Prepaid expenses 20 20 Total current assets 1,005 1,120 Plant and equipment, net 1,270 1,420 Total assets $ 2,275 $ 2,540 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 330 $ 360 Accrued liabilities 50...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 155200 250 170 20 640 780 230 200 20 605 790 Total current assets Plant and equipment, net Total assets $1,395 $1,420 Liabilities and Stockholders' Equity Current liabilities: $ 170 200 50 40 290 190 480 Accounts payable Accrued liabilities Notes...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 200 320 290 20 830 1,060 $1,890 $ 290 340 260 20 910 1,140 $2,050 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: $ 260 50 40 350 250 600 $ 290 50 40...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets $ 340 390 310 Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets $ 225 370 340 20 955 1,210 $2,165 1.060 1,340 $2,400 $ 310 50 $ 340 50 40 400 300 Liabilities and stockholders' Equity Current liabilities Accounts payable Accrued...
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 170 $ 230 Accounts receivable, net 260 280 Inventory 230 200 Prepaid expenses 20 20 Total current assets 680 730 Plant and equipment, net 880 900 Total assets $ 1,560 $ 1,630 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 200 $ 230 Accrued liabilities 50...