1.(Financial statements) Given the following financial statements, construct the balance sheet for 2016.

Income Statement

2016

Sales

80,000

Expenses excluding depreciation and amortization

45,000

EBITDA

35,000

Depreciation and amortization

3,000

EBIT

32,000

Interest expense

1,000

EBT

31,000

Taxes (20%)

20%

6,200

Net income

24,800

Common dividends

11,000

Addition to retained earnings

13,800

Cash flow Statement

2016

Operating Activities

11,500

Net Income

24,800

Depreciation and amortization

3,000

Increase in accounts payable

7,500

Decrease in accruals (wages, utilities etc.)

-5,600

Increase in accounts receivable

-15,000

Increase(decrease) in inventories

-3,200

Net cash provided by operating activities

Investing Activities

-24,000

Addition to property, plant, and equipment

-24,000

Financing activities

13,850

Increase in notes payable

2,500

Increase in long-term debt

12,350

Increase in common stock

10,000

Payment of common dividends

-11,000

Net change in cash

1,350

Balance Sheet

Assets

2015

2016

Current Assets

125,000

Cash

10,000

Accounts Receivable

85,000

Inventories

30,000

Net Fixed Assets

432,000

Total Assets

557,000

Liabilities and Equity

Current Liabilities

59,000

Accounts Payable

23,000

Accruals (wages, utilities etc.)

22,000

Notes Payable

14,000

Long-term Debt

360,000

Shareholder's Equity

Common Stock

90,000

Retained Earnings

48,000

Total Liabilities and Equity

557,000