Calculate: The following calculations will be based on the income statement and the balance sheet provided:
The net cash flow from operating activities The net cash flow from investing activities The net cash flow from financing activities
|
Income Statement for the Year Ended 12-31-2011
|
|
|
Amount in Dollars
|
|
|
Sales
|
2,000,000.00
|
|
|
Cost of Goods Sold
|
1,500,000.00
|
|
|
Gross Profit
|
500,000.00
|
|
|
Selling and Administrative Expenses
|
270,000.00
|
|
|
Depreciation Expense
|
50,000.00
|
|
|
Operating Profit (EBIT)
|
180,000.00
|
|
|
Interest Expense
|
20,000.00
|
|
|
Earnings Before Taxes
|
160,000.00
|
|
|
Taxes
|
49,500.00
|
|
|
Net Income
|
110,500.00
|
|
|
Notes:
|
|
|
|
Dividends Paid to Preferred Stockholders
|
10,500.00
|
|
|
Cash Dividend to Common Stockholders
|
50,000.00
|
|
|
|
|
|
|
|
|
|
Comparative Balance Sheet for the Years 2009 and 2010
|
|
|
12/31/09
|
12/31/10
|
|
|
Assets
|
|
Amount in Dollars
|
|
|
Current Assets:
|
|
|
|
|
|
Cash
|
30,000.00
|
40,000.00
|
|
|
Marketable Securities
|
10,000.00
|
10,000.00
|
|
|
Accounts Receivable
|
170,000.00
|
200,000.00
|
|
|
Inventory
|
160,000.00
|
180,000.00
|
|
|
Prepaid Expenses
|
30,000.00
|
20,000.00
|
|
|
400,000.00
|
450,000.00
|
|
|
Long Term investments
|
20,000.00
|
50,000.00
|
|
|
Plant and Equipment
|
1,000,000.00
|
1,100,000.00
|
|
|
Less Accumulated Depreciation
|
|
550,000.00
|
600,000.00
|
|
|
Net Plant and Equipment
|
450,000.00
|
500,000.00
|
|
|
Total Assets
|
870,000.00
|
1,000,000.00
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
Accounts Payable
|
45,000.00
|
80,000.00
|
|
|
Notes Payable
|
100,000.00
|
100,000.00
|
|
|
Accrued Expenses
|
35,000.00
|
30,000.00
|
|
|
180,000.00
|
210,000.00
|
|
|
Long Term Liabilities
|
|
|
|
|
Bonds Payable, 2020
|
40,000.00
|
90,000.00
|
|
|
|
|
|
|
Total Liabilities
|
220,000.00
|
300,000.00
|
|
|
Stockholders' Equity
|
|
|
|
|
|
Preferred Stock
|
50,000.00
|
50,000.00
|
|
|
Common Stock
|
100,000.00
|
100,000.00
|
|
|
Capital Paid in Excess of Par
|
250,000.00
|
250,000.00
|
|
|
Retained Earnings
|
250,000.00
|
300,000.00
|
|
|
Total Stockholders' Equity
|
650,000.00
|
700,000.00
|
|
|
Total Liabilities and Stockholders' Equity
|
870,000.00
|
1,000,000.00
|
|
|
|
|
|
|
|
|
Cash Flow from Operating Activities
as of 12/31/2009
|
|
|
Entry Name
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow from Operating Activities
|
-
|
|
|
|
Cash Flow from Investing Activities
as of 12/31/2010
|
|
|
Entry Name
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow from Investing Activities
|
-
|
|
|
Cash Flow from Financing Activities
as of 12/31/2010
|
|
|
Entry Name
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow from Financing Activities
|
-
|
|
|
|