Question

1. Prepare the income statements and balance sheets for 2008 and 2009 assuming a 34% tax rate. Also, assume a payout ratio of 51% and a retention ratio of 49%. 2. Prepare the statement of cash flows for 2009. Ticket sales Promotional Advertising Fees for television Depreciation Team and game expenses Selling and promotional expenses Deferred compensation current portion Interest expense Cash Accounts receivable Accounts payable Deferred Compensation noncurrent portion Long-term debt Net fixed assets General and administrative expenses Inventory 2008 $ 3,617.00 $ $ 2,893.00 $ $ 723.00 $ $ 1,038.00 $ $ 2,487.00 $ $ 141.00 $ $ 732.00 $ $ 485.00 $ $ 3,792.00 $ $ 5,021.00 $ $ 3,984.00 $ 2009 4,043.00 3,234.00 808.00 1,085.00 2,675.00 213.00 717.00 579.00 4,014.00 5,892.00 4,025.00 $ 700.00 $ 857.00 $ 12,000.00 $ 14,578.00 $ 31,805.00 $ 33,921.00 $ 450.00 $ 569.00 $ 8,927.00 $ 9,555.00 Screen Shot

Answer 1

Income statement for the year ending

Revenues:	31-Dec-2008	31-Dec-2009
Ticket sales	3,617.00	4,043.00
Promotional advertising	2,893.00	3,234.00
Fees for television	723.00	808.00
Total revenues	7,233.00	8,085.00
Operation expenses:
Depreciation	1,038.00	1,085.00
Team and game expenses	2,487.00	2,675.00
Selling and pramotional expenses	141.00	213.00
Selling and administrative expenses	450.00	569.00
Total operating expenses	4,116.00	4,542.00
Earnings before interest and texes	3,117.00	3,543.00
Less:Interest expense	485.00	579.00
Earings before taxes	2,632.00	2,964.00
Less:Taxes 34%	894.88	1,007.76
Net income	1,737.12	1,956.24

Balance Sheet

Assets	31-Dec-2008	31-Dec-2009
Current Assets
Cash	3,792.00	4,014.00
Accounts receivable	5,021.00	5,892.00
Inventory	8,927.00	9,555.00
Total Current Assets	17,740.00	19,461.00
Net fixed assets	31,805.00	33,921.00
Total aseets	49,545.00	53,382.00
Liabilities and Shareholder's equity
Current Liabilities:
Account Payable	3,984.00	4,025.00
Deferred compensatioin current portion	732.00	717.00
Total current liabilities	4,716.00	4,742.00
Non-Current Liabilities:
Long-term debt	12,000.00	14,578.00
Deferred compensatioin noncurrent portion	700.00	857.00
Total Non-Current liabilities	12,700.00	15,435.00
Shareholder's Equity	32,129.00	33,205.00
Total Liabilities ans Shareholder'sEquiry	49,545.00	53,382.00

Cash Flow Statement For the year ending

Operation activities:	31-Dec-2009
Net income	1,956.24
Add:Depreciation	1,085.00
Add/Less:Changes in Current Asssets and Liabilities
Account receviable	[871.00]
Inventory	[628.00]
Account payable	41.00
Deferred compensatioin current portion	[15.00]
Total cash flow from Operating Activities	1,568.24
investing activities:
Purchese of fixed assets	[2,116.00]
Deferred compensatioin noncurrent portion	157.00
Total cash flow from investing activites	[1,959.00]
Financing activities:
Dividents 51%	[997.68]
Long-term debt	2,578.00
Retaiined earings changes	[967.56]
Total cash flow from Financing Activities	612.00
Total cash flow from All Activities	222.00
Opening cash balance	3,792.00
Closing cash balance	4,014.00