Question
Answered step-by-step

Required: In Excel prepare a capitalized cash flow valuation for...

Required:

In Excel prepare a capitalized cash flow valuation for OTE, using the information provided in the exhibits.

Exhibit I

Over The Edge Inc.

Balance sheet

As at December 31

Current year | Prior year

Cash $ 4,560 |$ 12,720

Investments — | 29,850

Accounts receivable 1,370,150 | 1,112,457

Income taxes receivable 36,160 | —

Inventory 1,196,190 | 938,945

Prepaids 4,920 | 4,920

TOTAL CURRENT ASSETS 2,611,980 | 2,098,892

Property, plant, and equipment 4,244,413 | 2,998,749

Intangible assets 13,883 | —

Due from shareholder 21,500 | 21,500

Total Assets $ 6,891,776 | $ 5,119,141

Demand bank loan $ 375,422 | $ 96,800

Accounts payable and accruals 1,409,932 | 1,175,915

Warranty accrual 315,231 | 259,412

Deferred revenue 156,500 | —

Current portion of term loan 141,000 | 141,000

Income taxes payable — | 11,700

2,398,085 | 1,684,827

Term loan 572,000 | 713,000

Other long-term liabilities 1,128,570 | —

Share capital 150,100 | 150,100

Retained earnings 2,643,021 | 2,571,214

TOTAL Liabilities and shareholder's equity $ 6,891,776 | $ 5,119,141 


Over The Edge Inc. Statement of income and retained earnings For the year ended December 31

Current Year | Prior Year Sales

$ 8,959,800 | $ 8,834,000

Cost of sales 5,949,648 | 6,129,709

Gross profit 3,010,152 | 2,704,291

Expenses:

Advertising and promotion 357,900 | 266,500

Amortization 219,163 | 166,584

Automobile 140,800 | 102,600

Bad debts 17,250 | 19,110

Donations 1,200 | 1,000

Dues and fees 7,500 | —

Insurance 69,600 | 57,200

Interest and bank charges 119,203 | 46,600

Office 101,200 | 108,700

Professional fees 67,700 | 34,800

Property taxes 44,700 | 40,900

Rent expense 84,654 | —

Repairs and maintenance 207,100 | 155,100

Salaries and wages 1,160,460 | 1,175,600

Travel 117,666 | 103,900

Utilities 67,600 | 60,200

Warranty 72,059 | 69,482

Income before taxes 154,397 | 296,015

Income taxes 33,840 | 76,754

Net income 120,557 | 219,261

Retained earnings, opening 2,571,214 | 2,360,953

Dividends 48,750 | 9,000

Retained earnings, closing $ 2,643,021 | $ 2,571,214 

Ask a new Question

Answer & Explanation
Verified Solved by verified expert

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ips

lestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus eff

Unlock full access to Course Hero

Explore over 16 million step-by-step answers from our library

Subscribe to view answer
Step-by-step explanation

, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque d

e vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing

ia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictu

ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie con

or nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna.


m risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Done


entesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat,

a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictu


inia pulvinar tortor nec facilis

dictum vitae odio. Donec alique

iscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante


aciniasnip 2.PNG



molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet a

Snip 1.PNG


dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing el

2 Attachments
Snip 1.PNG
PNG
snip 2.PNG
PNG
Student reviews
60% (5 ratings)