Bus320Notesp3

Bus320Notesp3 - Chapter 3: Financial Statements, Cash...

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Financial Statements, Cash Flows, and Taxes I. The Balance Sheet Allied Food Products: December 31 Balance Sheets ASSETS 2005 2004 LIABILITIES & EQUITY 2005 2004 Cash $10 $80 A/P $60 $30 A/R 375 315 Notes Payable 110 60 Inventories 615 415 Accruals 140 130 Total Current $1,000 $810 Total Current Liab. 310 220 Net Plant Long Term Debt 750 580 & Equipment 1,000 870 Total Liabilities 1,060 800 Common Stock 130 130 Paid in Capital 30 30 Retained earnings 780 720 Total Common Equity 940 880 Total Assets $2,000 $1,680 Total Liabilities & Equity $2,000 $1,680 II. The Income Statement Allied Food Products: Income Statements for years ending December 31 (in $millions) 2005 2004 Net Sales $3,000.0 $2,850.0 Operating Costs 2,616.2 2,497.0 Depreciation 100.0 90.0 Operating Income ( EBIT ) 283.8 263.0 Less Interest 88.0 60.0 Earnings Before Taxes ( EBT ) 195.8 203.0 Less Taxes (40%) 78.3 81.2 Net Income 117.5 121.8 Common dividends 57.5 53.0 Addition to retained earnings 60.0 68.8 EPS (Earnings per Share)*
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Bus320Notesp3 - Chapter 3: Financial Statements, Cash...

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