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1. Given the information that follows for The Tickled Pickle Corporation (TTP): a. The Cash Flow from Assets for year ended December 31, 2016
1. Given the information that follows for The Tickled Pickle Corporation (TTP): a. The Cash Flow from Assets for year ended December 31, 2016 is -$1300. Show the calculations necessary to arrive at that conclusion. Note: There are some accounting treatments that would handle notes payable differently in these calculations. However, since our textbook does the calculations using current liabilities, as listed on the statement, we will do the same. Note also that Bonds Payable are the only long term liabilities. b. Calculate the cash flows to stockholders and creditors for the year ended December 31, 2016. Show your work. The Tickled Pickle, Inc. 12/31/15 and 12/31/16 (5000) Balance Sheet Assets Cash Accounts receivable Numbers in thousand 12/31/15 12/31/16 2,388 2.931 5,219 6,363 6,800 7,906 Inventory Current assets Net plant and equipment Total assets Liabilities and Owners' Equity $ 14,407 $ 17,200 24,981 28,425 $ 39,388 $ 45,625 12/31/15 12/31/16 Account payable 3,813 4,631 Accrued expenses 1,894 2,188 Notes payable-current (9%) 4,375 2,725 Current liabilities 10,082 9,544 Bonds Payable 8,250 12,550 Owners' equity Common stock 4,125 4,125 Paid-in capital Retained earnings Total owners' equity 5,719 5,719 11,212 13,687 21.056 23,531 Total liabilities & owners' equity $ 39,388 $ 45,625 The Tickled Pickle, Inc. 12/31/15 and 12/31/16 (5000) 2015 2016 $ 16,875 $ 23.150 Sales Cost of goods sold 6,750 9,260 Gross profit Operating expenses" Interest expense Net income before taxes. Taxes (35%) Net income 10.125 13,890 5,075 6,125 1,010 1,222 4,040 6,543 1,414. 2,290 $ 2.626 $ 4,253 Includes deprec. expense of... 1,050 1,385
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