Question
10 points) Consider the following abbreviated financial statements for Kirksville Inc,: ASSETS LIABILITIES and OWNERS EQUITY 2019 2020 2019 2020 Current Assets $1,200 $1,500 Current
10 points) Consider the following abbreviated financial statements for Kirksville Inc,:
| ASSETS | LIABILITIES and OWNERS EQUITY | ||||
|
| 2019 | 2020 |
| 2019 | 2020 |
| Current Assets | $1,200 | $1,500 | Current Liabilities | $1,000 | $1,500 |
| Net Fixed Assets | $8,000 | $10,000 | Long-term Debt | $4,000 | $4,200 |
| 2020 INCOME STATEMENT | |
| Sales | $33,000 |
| Costs of Goods Sold | $20,000 |
| Depreciation | $2,500 |
| Interest Expense | $3,000 |
(a) (4 points) What is owners equity for 2019 and 2020?
(b) (6 points) During 2020, Kirksville Inc. added 30% of the net income to the retained earnings. What is the cash flow to stockholders for 2020? Assume that the applicable marginal tax rate is 20%.
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Weathering The Storm A Quick Guide To Safeguarding Your Finances During Economic Recession
Authors: Liam Wilhelm
1st Edition
979-8864393628
