1. Use the information in the provided Income Statement and Balance Sheet to create the 2019 Statement of Cash Flows for H&K Inc.

2. Formulas: a. Use Excel to setup the Statement of Cash Flows by linking the values from the Income Statement and the Balance Sheet. b. Use Excel formulas to calculate all totals and sub-totals.

3. Complete the ratio calculations for 2019 on the appropriate tab using the Income Statement and Balance Sheet. All ratios should be linked back to your financial statements.

Create a Cash Flow Statement

H&K INC. Income Statement For the Years Ended December 31, 2019 and 2018 Sin millions 2019 2018 Revenue $ Net sales Cost of merchandise sold Gross Profit 53,342 $ 29,963 23,379 44,452 24.969 19,483 Operating Expenses Selling, general and administrative Depreciation Operating income 7,541 278 15,560 7,182 2,550 9,751 Interest expense, net Gain/(Loss) on sale of property & equip Income before income taxes 205 (250) 15,105 205 169 9,715 Provision for income taxes 3.163 2,040 a $ Net income $ 11,942 7,675 H&K INC. Balance Sheet December 31, 2019 and 2018 Sin millions 2019 2018 S Current Assets Cash and cash equivalents Accounts Receivable, net Merchandise inventories Other current assets Total Current Assets 19,496 2,420 4,250 450 26,616 9,165 1,610 4,029 316 15,120 Long-Term Assets Property and equipment Accumulated depreciation Intangible assets, net Total Long-Term Assets Total Assets 12,049 (2,828) 193 9,414 36,030 10,299 (2,550) 193 7,942 23,062 $ $ 1,3235 1,135 1,251 1,206 Current Liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total Current Liabilities 790 130 135 3,383 127 2,714 Non-current Liabilities Long-term debt Total Liabilities 6,152 5,900 8,614 9,535 Shareholders' Equity Common stock; 01 par value; 9,000 shares authorized; 370 and 367 shares issued & outstanding respectively Paid-in capital Treasury stock, at cost Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 3,227 (9,864) 33,128 26,495 36,030 2,927 (9,714) 21,231 14,448 23,062 $ $ Additional Information: 1. The company paid dividends of $16 in 2018 and $45 in 2019. 2. The company purchased treasury stock of $150 during 2019 and sold common stock for $300 during 2019. No other stock transactions took place. 3. The company purchased $4,500 in equipment during the year. In addition, equipment was sold for $2500. the equipment had a book value at the time of sale of $2750. 4. There were no purchase or sale of intangible assets. 5. The company made payments of $250 on its debt obligations and took an additional $510 in debt during the year. Current Ratio Acid-Test Ratio = AR Tumover = Days Sales Uncollected = Inventory turnover Days sales in Inventory = Total Asset Turnover = Debt to Equity Times Interest Earned = Net Profit Margin= Return on Total Assets = Retum on Stockholders Equity = Earnings per Share (EPS) =