Question

Question 2 Parts A-D

A

Use the starting balance sheet, income statement, and the list of changes to answer the question.

Valley Technology Balance Sheet As of December 31, 2019 (amounts in thousands)
Cash	22,000	Liabilities	36,000
Other Assets	28,000	Equity	14,000
Total Assets	50,000	Total Liabilities & Equity	50,000

Valley Technology Income Statement January 1 to March 31, 2020 (amounts in thousands)
Revenue	7,200
Expenses	3,600
Net Income	3,600

Between January 1 and March 31, 2020:

1. Cash decreases by $200,000
2. Liabilities decrease by $100,000
3. Paid-In Capital does not change
4. Dividends paid of $400,000

What is the value for Other Assets on March 31, 2020?

Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.

Please specify your answer in the same units as the financial statements (i.e., enter the number from your updated balance sheet).

B

Use the income statement and the list of changes to answer the question.

Lightspeed Industries Income Statement January 1 to December 31, 2019 (amounts in thousands)
Revenue	9,800
Cost of Goods Sold (COGS)	1,960
Gross Income	7,840
Sales, General, & Administrative Expenses (SG&A)	980
Depreciation Expense	800
Other Expenses	400
Earnings Before Interest & Taxes (EBIT)	5,660
Interest	170
Pre-Tax Income	5,490
Income Taxes	2,196
Net Income	3,294

Between January 1 and December 31, 2019:

1. Accounts Receivable increase by $500,000
2. Accounts Payable increase by $700,000
3. Gross Property, Plant, & Equipment increase by $9,400,000
4. Long Term Debt decreases by $400,000

Assume no other changes

What is the Net Cash Flow?

Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.

Please specify your answer in the same units as the financial statements (i.e., enter the number from your completed statement of cash flows).

C

Use the starting balance sheet and statement of cash flows to answer the question.

Valley Technology Balance Sheet As of December 31, 2019 (amounts in thousands)
Cash	97,000	Accounts Payable	15,000
Accounts Receivable	45,000	Debt	29,000
Inventory	38,000	Other Liabilities	8,000
Property Plant & Equipment, Gross	239,000	Total Liabilities	52,000
Accumulated Depreciation	75,000	Paid-In Capital	73,000
Property Plant & Equipment, Net	164,000	Retained Earnings	236,000
Other Assets	17,000	Total Equity	309,000
Total Assets	361,000	Total Liabilities & Equity	361,000

Valley Technology Statement of Cash Flows January 1 to March 31, 2020 (amounts in thousands)
Net Income	8,500
Depreciation	1,500
Decrease (Increase) in Accounts Receivable	(100)
Decrease (Increase) in Inventory	500
Increase (Decrease) in Accounts Payable	(800)
Other Adjustments	0
Net Cash Flow from Operating Activities	9,600
Purchase of Property, Plant, & Equipment	(5,700)
Other Adjustments	0
Net Cash Flow from Investing Activities	(5,700)
Increase (Decrease) in Debt	(1,000)
Dividends	(200)
Other Adjustments	0
Net Cash Flow from Financing Activities	(1,200)
Net Cash Flow	2,700

What is the value for Total Liabilities & Equity on March 31, 2020?

Please specify your answer in the same units as the financial statements (i.e., enter the number from your updated balance sheet).

D

Use the balance sheets and information provided about revenue and expenses to answer the question.

Gulf Shipping Company Balance Sheet As of December 31, 2019 (amounts in thousands)
Cash	143,000	Accounts Payable	19,000
Accounts Receivable	41,000	Debt	32,000
Inventory	58,000	Other Liabilities	40,000
Property Plant & Equipment, Gross	210,000	Total Liabilities	91,000
Accumulated Depreciation	62,000	Paid-In Capital	77,000
Property Plant & Equipment, Net	148,000	Retained Earnings	229,000
Other Assets	7,000	Total Equity	306,000
Total Assets	397,000	Total Liabilities & Equity	397,000

Gulf Shipping Company Balance Sheet As of March 31, 2020 (amounts in thousands)
Cash	145,000	Accounts Payable	24,000
Accounts Receivable	39,000	Debt	41,000
Inventory	65,000	Other Liabilities	28,053
Property Plant & Equipment, Gross	210,000	Total Liabilities	93,053
Accumulated Depreciation	63,200	Paid-In Capital	77,000
Property Plant & Equipment, Net	146,800	Retained Earnings	230,747
Other Assets	5,000	Total Equity	307,747
Total Assets	400,800	Total Liabilities & Equity	400,800

Revenue and expenses information from January 1 to March 31, 2020 were:
Sales Revenue of $7,900,000
COGS of 20% of Sales
Interest of $100,000
Other Expenses of $300,000
SG&A of $1,580,000
Tax Rate of 38%

What is the net income in the first quarter of 2020?

Note: Revenue and expense amounts are provided in dollars but the financial statement units are thousands of dollars.

Please specify your answer in the same units as the financial statements (i.e., enter the number from your completed income statement).

Answer 1

A). Calculation of other Assets on March 31 2020, Balance sheet m 31 march 2020 Amount in thousand $ ( 000 $ Liabelites Amount Assets. Amount Liabelties. 36000 22000 Cash. Decrease 100 200 21800 E decrease 35 900 31 300 Equity 14000 Other Assets (Bel. feg). 3600 + NI It dividend. uoo paid 17200 S 3150 53100 Answere other Assets. as in march 31 2020 is 31300 (53100 - 21800

B). cash flow Statement. Light Speed Indussies. Amount in thousand & Cooo s) Ammunt Amount. particular Cash flow from operating Activities 3294 Net Income. [ PAT) Add Non. Cash expenses. Depreciation 800 800 4094 changes in working Capital Increase in Account Reecivable (500) Increase in Account payable 700 200 4294 Cash flow from operaling Activities. CAJ 27 Cash How from operating Activities Increase purch ase of property, plant, and equipment (9460)

partiwlar Amount Amount guro Net Cash used in operating Activities. (8) 37 Cash How from financing Activities. Decrease in long term debt ( po remption). (400) Met Cash used in financing (hoo) Activities. (5706) Net Cash flow. (A + B + c) means Not Hot Cath used in in business. Inventorys are Sateel Sold freguantly Need more Cash Generation from operating Actrities. Answere Cash flow : (-5706).

c) Calculation of Total Liabilities and Equity Amount in thousand & particular (tiabilities) Anrunt. Accounts payable. 14 Decrease in Ap. IS000 142000 Debt. 290o (-) Deerease in debt . 28000 other liabitities. 800 8 VVD paid in Copiled 73000 7300o Retained earnings + Income Dividend. 236 000 8 STO (200) 244350 Total Liabelties and Equity 317500

D). 31 Income Statement of first quater. Gulf Compenny as m march. Amount in threy and $ particular Amount Amount 7900 Sales. e Cost of Good Sold. (20%.Jot Sales 1580 Groes margin (A) 6320 other Expenses. Joo 300 1580 Interest other Expenses. . Selling and Adminstortive expenses. Depreciation ( 62000 - 63200) 12 00 3180 Income before Tan. 3140 ( Tax @ 387. 1193.2 Net Income. 1946.80

Accumulated deprecation during period 19 Accutulated depreciation as m 31 march 2020 Accutruloted deporciotin m 31 Llec 2019 63200 - 62000 1 200
ALL THE AMOUNT IS IN THOUSANDS DOLLAR

(000 $)