The balance sheets at the end of 2018 and 2019 of Kairos Industries are shown below: 2019
Question:
The balance sheets at the end of 2018 and 2019 of Kairos Industries are shown below:
2019 | 2018 | |
Cash | $102,950 | $89,825 |
Accounts receivable | 103,465 | 85,627 |
Inventories | 38, 544 | 35,082 |
Total current assets | 244, 959 | 210, 534 |
Property, plant and equipment | 67,265 | 42,536 |
Total assets | 312,224 | 253,070 |
Debts to pay | 30,861 | 23,209 |
Accumulations | 30,577 | 22,756 |
Obligations to pay | 16,817 | 14,317 |
Total current liabilities | 78,255 | 60,282 |
Long term debts | 76,364 | 64,014 |
Total de pasivos | 154, 619 | 124,296 |
Common actions | 100,000 | 90,100 |
Retained earnings | 57,605 | 38,874 |
Total equity | 157,605 | 128,974 |
Total liabilities plus equity | $312,224 | $253,270 |
1. In 2019, Kairos Industries achieved sales of $ 330 million and EBITDA of 17% of sales. Depreciation as amortization of fixed assets was 11% and interest paid $ 2 million. On the other hand, the tax rate was 35% and 38% of the net income is awarded to dividends. Prepare an income statement taking into consideration the data presented. (10 points)
2. Prepare the capital statement for the period ended December 31, 2019. (8 points)
3. Taking into consideration that Kairos Industries does not have any surplus cash available, it determines the available cash flow (Free Cash Flow) and the operating working capital. (6 points)
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton