Question

Berkeley Automobile Company Inc. (000's) 2018 2019 Sales $ 10,500 $ 16,000 Net Fixed Assets $ 9,800 $ 9,650 Inventory $ 3,100 $ 4,510 Cost of Goods Sold $ 6,900 $ 9,242 Interest theatino $ 300 $ 375 Cash $ 575 $ 550 Common Stock (APIC) $ 2,500 $ 2,500 Depreciation $ 375 $ 360 Accounts Receivable $ 1,600 $ 4,900 Accounts Payable $ 2,400 $ 3,600 Long-Term Debt $ 3,500 $ 4,120 Tax Rate 34% 34% Dividends $ 824 $ 1,260 Common Shares Outstanding 200 200 Book Value Per Share $ 45.88 $ 59.45 Price / Earnings Multiple (PE) 13 11 All balance sheet items are as of 12/31 of that year All income statement items are for the entire year indicated

Answer 1

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575 Statement of Cash Flows for the year ended 31 Dec 2019 Particulars Amount Cash at Beginning of year Cash Flow From Operating Activities Amount Received From Debtor (W.N. 3) 12700 Amount paid to Account payable (W.N.2) (9,452) Taxes Paid (W.N.1) (2,048) Working Notes 1 Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory 9242 = 3100 + Purchases - 4510 Purchases = 4510 Particulars To Cash Accounts Payable A/C Amount Particulars 9452 By Opening Balance Amount 2400 Cash Flow From Operating Activities 1200 To Closing Balance 3600 By Purchases 10652 Cash Flow from Investment Activities Payment For Asset Purchased (W.N.4) Cash Flow into Investment Activities (210) (210) 13052 13052 Cash Flow from Financial Activities Accounts Receivable A/C Particulars Amount Particulars To Opening Balance 1600 By Cash Amount 12700 Long Term Debt Taken During The Year Payment of Dividend Payment of Interest Cash Flow into Financial Activities Cash at end of Year 620 (1,260) (375) To Sales 16000 By Closing Balance 4900 (1,015) 550 17600 17600

Particulars To Opening Balance Fixed Asset A/C Amount Particulars 9800 By Depreciation Amount 360 To Asset Purchased 210 By Closing Balance 9650 10010 10010 Income Statement For The year Ended 31 Dec, 2019 Particulars Amount Sales 16000 Cost of Goods Sold (9,242) Gross Income 6,758 Interest (375) Depreciation (360) Income before tax 6,023 Tax (34%) (2,048) Income after tax 3,975 Dividend Paid (1,260) Earning after Dividend 2,715