Question
2. Question - Cash Flow Analysis 2019 2018 2017 Income Statement: Sales 120,000 100,000 90,000 COGS -84,000 -70,000 -63,000 Gross Margin 36,000 30,000 27,000 Other
2. Question - Cash Flow Analysis
| 2019 | 2018 | 2017 | |||||||||||||||||||||||
| Income Statement: | |||||||||||||||||||||||||
| Sales | 120,000 | 100,000 | 90,000 | ||||||||||||||||||||||
| COGS | -84,000 | -70,000 | -63,000 | ||||||||||||||||||||||
| Gross Margin | 36,000 | 30,000 | 27,000 | ||||||||||||||||||||||
| Other Fixed Costs | -16,000 | -16,000 | -16,000 | ||||||||||||||||||||||
| Depreciation | -5,000 | -5,000 | -4,000 | ||||||||||||||||||||||
| EBIT | 15,000 | 9,000 | 7,000 | ||||||||||||||||||||||
| Interest | -5,000 | -5,000 | -5,000 | ||||||||||||||||||||||
| Earnings before Taxes | 10,000 | 4,000 | 2,000 | ||||||||||||||||||||||
| Taxes | -3,000 | -1,200 | -600 | ||||||||||||||||||||||
| Net Income | 7,000 | 2,800 | 1,400 | ||||||||||||||||||||||
| Dividends | -3,500 | -1,000 | - | ||||||||||||||||||||||
| Retained Earnings | 3,500 | 1,800 | 1,400 | ||||||||||||||||||||||
| Statement of Financial Position: | |||||||||||||||||||||||||
| Cash | 16,700 | 7,000 | 3,100 | ||||||||||||||||||||||
| Accounts Receivable | 10,000 | 9,900 | 8,800 | ||||||||||||||||||||||
| Inventory | 3,000 | 3,300 | 3,000 | ||||||||||||||||||||||
| Fixed assets | 205,000 | 200,000 | 200,000 | ||||||||||||||||||||||
| Total | 234,700 | 220,200 | 214,900 | ||||||||||||||||||||||
| Accounts Payable | 18,000 | 15,000 | 13,500 | ||||||||||||||||||||||
| Long-term Debt | 105,000 | 102,000 | 100,000 | ||||||||||||||||||||||
| Common Stock | 105,000 | 100,000 | 100,000 | ||||||||||||||||||||||
| Retained Earnings | 6,700 | 3,200 | 1,400 | ||||||||||||||||||||||
| Total | 234,700 | 220,200 | 214,900 | ||||||||||||||||||||||
| |||||||||||||||||||||||||
- Prepare a Statement of Cash Flows for 2019 and 2018. (10 marks)
- Explain why cash increased in 2019 and 2018 with reference to your cash flows and the days information. (3 marks)
- Which financing strategy is the company using? (2 marks)
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Introductory Statistics For The Behavioural Sciences
Authors: Joan Welkowitz, Robert B. Ewen, Jacob Cohen
2nd Edition
0127432604, 9780127432601
