event1_key - Event 1: Financial Statements Questions On the...

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Unformatted text preview: Event 1: Financial Statements Questions On the initial balance sheet, what is the value of the total assets? On the initial balance sheet, what is the value of the total liabilities? For the first year of operation, how much does the company earn? On which statement is the interest paid to the bank shown? How is the interest calculated? On which statement is the annual loan payment to the bank shown? On which statement is depreciation shown? 84000 44000 19897.5 Income Statement (Loan balance)*(Interest rate) Cash Flow Statement Income Statement and Cash Flow Statement. (Cumulative depreciation is on Balance sheet.) 19497.5 19897.5 How much does the company's cash increase in the first year. How much does Pedro's equity increase in the first year? Fill in the table below for as many years as you can. Year Total Assets Net Income After taxes Total Equity 1 92898 19898 59898 2 113255 31358 91255 3 141285 39030 130285 4 5 138250 168888 7965 30637.5 138250 168888 1 Initial Balance Sheet Assets Current Assets Cash Other Current Assets Total Current Assets Fixed Assets Trucks Shredders Other Fixed Assets Less Accum. Depreciation Total Fixed Assets Total Assets Income Statement 1 Net Sales Cost of Sales Gross Margin Operating Expenses Depreciation Admin. Expense (salary) Total Operating Expenses Operating Income Other Income Cash Flow statement Interest Expense Total Other Income Income before taxes 135000 64350 70650 10000 0 10000 69000 5000 0 0 74000 84000 10600 30000 40600 30050 0 3520 3520 26530 Liabilities Current Liabilities Notes Payable Taxes (25%) 0 Net Income After Taxes 6632.5 19897.5 Other Current Liabilities Total Current Liabilities 0 0 Cash Flow Statement 1 Cash Flow Statement Long Term Liabilities Loan from Bank Other Long term liabilities Total Long Term Liabilities Total Liabilities 44000 0 44000 44000 Equity Pedro's Equity Other Capital Accumulated Retained Earnings Total Equity Total Liabilities and Equity 40000 0 0 40000 84000 Net Income after taxes (+) Depreciation (+) Increase in Capital (+) New Debt () Repay Debt () Dividends () Inc. in Other Assets Change in Cash 19897.5 10600 0 0 11000 0 0 19497.5 Net Income after taxes () Dividends Increase in retained earnings 19897.5 0 19897.5 2 Balance Sheet 1 Assets Current Assets Cash Other Current Assets Total Current Assets Fixed Assets Trucks Shredders Other Fixed Assets Less Accum. Depreciation Total Fixed Assets Total Assets Income Statement 2 Net Sales Cost of Sales Gross Margin Operating Expenses Depreciation Admin. Expense (salary) Total Operating Expenses Operating Income Other Income Cash Flow statement Interest Expense Total Other Income Income before taxes 150000 64950 85050 29497.5 0 29497.5 69000 5000 0 10600 63400 92897.5 10600 30000 40600 44450 0 2640 2640 41810 Liabilities Current Liabilities Notes Payable Other Current Liabilities Total Current Liabilities Taxes (25%) 0 0 0 Net Income After Taxes 10452.5 31357.5 Cash Flow Statement 2 Long Term Liabilities Loan from Bank Other Long term liabilities Total Long Term Liabilities Total Liabilities Cash Flow Statement 33000 0 33000 33000 Net Income after taxes (+) Depreciation (+) Increase in Capital (+) New Debt () Repay Debt () Dividends () Inc. in Other Assets Change in Cash 31357.5 10600 0 0 11000 0 0 30957.5 Equity Pedro's Equity Other Capital Accumulated Retained Earnings Total Equity Total Liabilities and Equity 40000 0 19897.5 59897.5 92897.5 Net Income after taxes () Dividends Increase in retained earnings 31357.5 0 31357.5 3 Balance Sheet 2 Assets Current Assets Cash Other Current Assets Total Current Assets Fixed Assets Trucks Shredders Other Fixed Assets Less Accum. Depreciation Total Fixed Assets Total Assets Income Statement 3 Net Sales Cost of Sales Gross Margin Operating Expenses Depreciation Admin. Expense (salary) Total Operating Expenses Operating Income Other Income Cash Flow statement Interest Expense Total Other Income Income before taxes 180000 85600 94400 60455 0 60455 69000 5000 0 21200 52800 113255 10600 30000 40600 53800 0 1760 1760 52040 Liabilities Current Liabilities Notes Payable Other Current Liabilities Total Current Liabilities Taxes (25%) 0 0 0 Net Income After Taxes 13010 39030 Cash Flow Statement 3 Long Term Liabilities Loan from Bank Other Long term liabilities Total Long Term Liabilities Total Liabilities Cash Flow Statement 22000 0 22000 22000 Net Income after taxes (+) Depreciation (+) Increase in Capital (+) New Debt () Repay Debt () Dividends () Inc. in Other Assets Change in Cash 39030 10600 0 0 11000 0 0 38630 Equity Pedro's Equity Other Capital Accumulated Retained Earnings Total Equity Total Liabilities and Equity 40000 0 51255 91255 113255 Net Income after taxes () Dividends Increase in retained earnings 39030 0 39030 4 Balance Sheet 3 Assets Current Assets Cash Other Current Assets Total Current Assets Fixed Assets Trucks Shredders Other Fixed Assets Less Accum. Depreciation Total Fixed Assets Total Assets Income Statement 4 Net Sales Cost of Sales Gross Margin Operating Expenses Depreciation Admin. Expense (salary) Total Operating Expenses Operating Income Other Income Cash Flow statement Interest Expense Total Other Income Income before taxes 100000 47900 52100 99085 0 99085 69000 5000 0 31800 42200 141285 10600 30000 40600 11500 0 880 880 10620 Liabilities Current Liabilities Notes Payable Other Current Liabilities Total Current Liabilities Taxes (25%) 0 0 0 Net Income After Taxes 2655 7965 Cash Flow Statement 4 Long Term Liabilities Loan from Bank Other Long term liabilities Total Long Term Liabilities Total Liabilities Cash Flow Statement 11000 0 11000 11000 Net Income after taxes (+) Depreciation (+) Increase in Capital (+) New Debt () Repay Debt () Dividends () Inc. in Other Assets Change in Cash 7965 10600 0 0 11000 0 0 7565 Equity Pedro's Equity Other Capital Accumulated Retained Earnings Total Equity Total Liabilities and Equity 40000 0 90285 130285 141285 Net Income after taxes () Dividends Increase in retained earnings 7965 0 7965 5 Balance Sheet 4 Assets Current Assets Cash Other Current Assets Total Current Assets Fixed Assets Trucks Shredders Other Fixed Assets Less Accum. Depreciation Total Fixed Assets Total Assets Income Statement 5 Net Sales Cost of Sales Gross Margin Operating Expenses Depreciation Admin. Expense (salary) Total Operating Expenses Operating Income Other Income Cash Flow statement Interest Expense Total Other Income Income before taxes 150000 68550 81450 106650 0 106650 69000 5000 0 42400 31600 138250 10600 30000 40600 40850 0 0 0 40850 Liabilities Current Liabilities Notes Payable Other Current Liabilities Total Current Liabilities Taxes (25%) 0 0 0 Net Income After Taxes 10212.5 30637.5 Cash Flow Statement 5 Long Term Liabilities Loan from Bank Other Long term liabilities Total Long Term Liabilities Total Liabilities Cash Flow Statement 0 0 0 0 Net Income after taxes (+) Depreciation (+) Increase in Capital (+) New Debt () Repay Debt () Dividends () Inc. in Other Assets Change in Cash 30637.5 10600 0 0 0 0 0 41237.5 Equity Pedro's Equity Other Capital Accumulated Retained Earnings Total Equity Total Liabilities and Equity 40000 0 98250 138250 138250 Net Income after taxes () Dividends Increase in retained earnings 30637.5 0 30637.5 6 Balance Sheet 5 Assets Current Assets Cash Other Current Assets Total Current Assets Fixed Assets Trucks Shredders Other Fixed Assets Less Accum. Depreciation Total Fixed Assets Total Assets 147887.5 0 147887.5 69000 5000 0 53000 21000 168887.5 Liabilities Current Liabilities Notes Payable Other Current Liabilities Total Current Liabilities 0 0 0 Long Term Liabilities Loan from Bank Other Long term liabilities Total Long Term Liabilities Total Liabilities 0 0 0 0 Equity Pedro's Equity 40000 Other Capital 0 Accumulated Retained Earnings 128887.5 Total Equity Total Liabilities and Equity 168887.5 168887.5 7 ...
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This note was uploaded on 05/13/2010 for the course ME 01923 taught by Professor Bard during the Spring '10 term at University of Texas at Austin.

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