2. Given the information that follows for Double Trouble, Inc., compute: a. The Cash Flow from Assets for year ended December 31, 2016 is -$1910. 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. Compute cash flows to stockholders and to creditors ended December 31, 2016. Double Trouble, Inc. 12/31/15 and 12/31/16/S000) Balance Sheet Assets Cash Accounts receivable 12/31/15 12/31/16 5,100 4,450 9.150 9,700 11,500 12.050 Inventory Current assets Plant and equipment Accumulated depreciation Net plant and equipment Total assets Liabilities and Owners' Equity $25,750 $26.200 72,500 83,450 20,000 23,950 52,500 59,500 $78,250 $85,700 12/31/15 12/31/16 Account payable 3,250 4.200 Accrued expenses 1,000 1,200 Notes payable-current (9%) 10,000 4,550 Current liabilities 14,250 9,950 Bonds Payable 21,000 28,250 Owners' equity Common stock 31,750 30000 Retained earnings Total owners' equity 11,250 17500 43,000 47,500 Total liabilities & owners equity $78,250 $85,700 12/31/15 and 12/31/16/$000) Sales 2015 2016 $27,000 $37,000 Cost of goods sold 10,800 14.800 Gross profit 16,200 22,200 Operating expenses* 5,000 6,900 Net operating income 11,200 15,300 Interest expense 1,500 1,650 Net income before taxes 9,700 13,650 Taxes (40%) 3,880 5,460 Net income $ 5,820 $8,190 Includes deprec. expense of 2,200 3,770 iii) Primary sources of cash were operations and the sale of bonds A small increase in accounts payable also provided some cash. The primary uses of cash were fixed assets, notes, dividend and interest expense.