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The finanial statements of the George company and the Millard Company are given below.
Questions
1 Derive the 20x4 income statement for the George Company 2 Derive the 20x4 cash receipts and disbursements for the Millard Company 3 Convert the cash receipts and disbursements for the years 20x0 to 20x4 for both companies to the statement of cash flowas by the direct method.
20906
Millard Company
Comparative balance sheets as of December 31, 20x0-20x4 (in $ thousands) 20x0 20x1 20x2 20x3 Cash 34 35 50 30 Accounts Receivable 365 420 477 545 Inventory 227 265 304 405 Current assets 626 720 831 980 Plant, property, and equipment 120 137 174 204 Less: Accumulated Depreciation (40) (50) (61) (73) Total assets 706 807 944 1,111 Accounts payable Taxes payable Short-term debt Current liabilities Long term debt Total liabilities Common stock Retained earnings Total equity Total liabilities and equity
Millard Company
20x4 46 599 458 1,103 237 (87) 1,253 104 133 453 690 239 929 76 248 324 1,253
104 81 181 366 48 414 81 211 292 706
118 95 246 459 46 505 72 230 302 807
125 113 238 476 143 619 80 245 325 944
113 130 391 634 143 777 73 261 334 1,111
Income statements, for years ended December 31, 20x0-20x4 (in $ thousands) 20x0 20x1 20x2 20x3 Sales 1,220 1,265 1,384 1,655 Cost of goods sold Operating expenses Depreciation Interest Tax expense Total expenses Net Income 818 298 9 15 38 1,178 42 843 320 10 19 33 1,225 40 931 363 11 16 27 1,348 36 1,125 434 12 21 26 1,618 37
20x4 1,861 1,277 504 14 51 6 1,852 9
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Millard Company
Cash receipts and disbursements, for years ended December 31, 20x0-20x4 (in $ thousands) 20x0 20x1 20x2 20x3 20x4
Cash receipts from
From customers Issue of stock Short-term debt Long-term debt Total receipts
Cash disbursements for
1,165 5 64 1,234
1,210 5 65 1,280
1,327 8 100 1,435
1,587 3 153 1,743
? ? ? ? ?
Cost of goods sold and operating expenses Dividends Taxes Interest Plant, property, and equipment purchases Repurchase of stock Repayment of long term debt Repayment short of term debt Total disbursements Change in cash
George Company
1,130 20 23 15 14 22 2 1,226 8
1,187 21 19 19 17 14 2 1,279 1
1,326 21 9 16 37 3 8 1,420 15
1,672 21 9 21 30 10
1,763 (20)
? ? ? ? ? ? ? ? ? ? ?
Comparative balance sheets as of December 31, 20x0-20x4 (in $ thousands) 20x0 20x1 20x2 20x3 Cash 28 32 35 54 Accounts Receivable 249 321 419 549 Inventory 303 391 510 672 Current assets 580 744 964 1,275 Plant, property, and equipment 200 200 220 230 Less: Accumulated Depreciation (10) (20) (32) (46) Total assets 770 924 1,152 1,459 Accounts payable Taxes payable Short-term debt Current liabilities Long term debt Total liabilities Common stock Retained earnings Total equity Total liabilities and equity 102 20 138 260 40 300 440 30 470 770 134 25 190 349 63 412 440 72 512 924 177 36 281 494 83 577 445 130 575 1,152 235 38 284 557 208 765 490 204 694 1,459
20x4 19 711 873 1,603 230 (61) 1,772 309 45 344 698 258 956 520 296 816 1,772
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Income statements, for years ended December 31, 20x0-20x4 (in $ thousands) 20x0 20x1 20x2 20x3 Sales 1,339 1,731 2,261 2,939 Cost of goods sold Operating expenses Depreciation Interest Tax expense Total expenses Net Income
George Company
George Com...