1. The following balance sheet is for the Ballyhoo Company for fiscal year-end 2014 (all numbers are in $thousands). Please fill in all missing data. (4 pts.) Assets Liabilities and Equity_____________ Cash _____ Accounts payable $420 Accounts receivable 960 Notes payable 580 Inventories 640 Accruals _____ Total curr. assets $2,800 Total current liabs. $1,750 Gross plant and equip. _____ Long-term bonds _____ Less: accum depr. 1,650 Total debt $2,680 Net plant and equip. _____ Preferred stock _____ Common stock (100 shares) 260 Retained earnings _____ Total Common Equity $2,430 Total Equity $2,520 Total Assets $5,200 Total liabs & equity _____

2. Using the information from above, if the fiscal year-end 2013 amounts for Accounts Receivable and Inventories were $895 and $650 respectively, and Accounts Payable and Accruals were $435 and $740 respectively, what was Ballyhoos cash from operating activities for 2014 assuming that net income and depreciation charges were $375 and $47 respectively? (5 pts.)

3. If Ballyhoo (again, from above) paid dividends totaling $120 in 2014, what would have been their retained earnings at the end of 2013? (2 pts.)

4. In 2013, the McFarsen Corp. reported sales of $4.56 million, operating expenses of $2.75 million, and depreciation was $0.88 million. The company pays an average rate of interest of 6.2% on $1.2 million of debt. It paid $130,000 in dividends to its shareholders in 2013. Construct an income statement for McFarsen for 2013. Use the tax table in table 2.3 (page 36) of the text to compute taxes. (6 pts.)

5. Using the information from problem #4 above, what is McFarsens Free Cash Flow for 2013 assuming that Gross Fixed Assets and Net Operating Working Capital were $2.4 million and 0.5 million, respectively, at the end of 2012, and $2.7 million and $0.4 million at the end of 2013. (3 pts.)