Question 1.
a. Prepare a cash flow statement for the following information.
b. Include a cash reconciliation statement.
Balance Sheet
Jan 1
Dec 31
ASSETS:
Current Assets:
Cash
Marketable...Question 1.
a. Prepare a cash flow statement for the following information.
b. Include a cash reconciliation statement.
Balance Sheet
Jan 1
Dec 31
ASSETS:
Current Assets:
Cash
Marketable Securities
Accounts Receivable, net
Inventory
Prepaid Expenses
Total Current Assets
310,000
1,200,000
290,000
3,000,000
200,000
5,000,000
600,000
1,000,000
330,000
4,000,000
300,000
6,230,000
Total Fixed Assets, net
2,500,000
2,000,000
Total Assets
7,500,000
8,230,000
LIABILITIES & EQUITIES
Current Liabilities:
Accounts Payable
Notes Payable
Accrued Expenses
Total Current Liabilities
1,500,000
1,000,000
500,000
3,000,000
1,000,000
1,000,000
800,000
2,800,000
Total Long-term Liabilities
Total Liabilities
1,000,000
4,000,000
1,500,000
4,300,000
Preferred Stock
Common Stock
Capital in Excess of Par
Retained Earnings
Total Stockholders Equity
500,000
500,000
1,000,000
1,500,000
3,500,000
500,000
500,000
1,000,000
1,930,000
3,930,000
Total Liabilities and Equity
7,500,000
8,230,000
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Income Statement (for question 1)
Sales
COGS
Gross Profit
Administrative expenses
Depreciation
EBIT
Interest Expense
EBT
Taxes (40%)
Net Income
10,000,000
6,000,000
4,000,000
1,200,000
500,000
2,300,000
500,000
1,800,000
720,000
1,080,000
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