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6. Table 3.1 in Chapter 3 presents financial statements over the period 20112014 for R&E Supplies, Inc. a. Construct a sources and uses statement for
6. Table 3.1 in Chapter 3 presents financial statements over the period 20112014 for R&E Supplies, Inc. a. Construct a sources and uses statement for the company over this period (one statement for all three years). b. What insights, if any, does the sources and uses statement give you about the financial position of R&E Supplies?
Income Statement | ||||
2011 | 2012 | 2013 | 2014 | |
Net sales | 11,190 | 13,764 | 16,104 | 20,613 |
Costs of goods sold | 9,400 | 11,699 | 13,688 | 17,727 |
Gross profit | 1,790 | 2,065 | 2,416 | 2,886 |
Expenses: | ||||
General, selling and admin expenses | 1,019 | 1,239 | 1,610 | 2,267 |
Net interest expense | 100 | 103 | 110 | 90 |
Earnings before tax | 671 | 723 | 696 | 529 |
Tax | 302 | 325 | 313 | 238 |
Earnings after tax | 369 | 398 | 383 | 291 |
Balance Sheet | ||||
Assets | ||||
Current assets: | ||||
Cash and securities | 671 | 551 | 644 | 412 |
Accounts receivable | 1343 | 1789 | 2094 | 2886 |
Inventories | 1119 | 1376 | 1932 | 2267 |
Prepaid expenses | 14 | 12 | 15 | 18 |
Total current assets | 3147 | 3728 | 4685 | 5583 |
Net fixed assets | 128 | 124 | 295 | 287 |
Totl assets | 3275 | 3852 | 4980 | 5870 |
Liabilities and Owner's Equity | ||||
Current liabilities: | ||||
Bank loan | 50 | 50 | 50 | 50 |
Accounts payable | 1007 | 1443 | 2426 | 3212 |
Current portion long-term debt | 60 | 50 | 50 | 100 |
Accrued wages | 5 | 7 | 10 | 18 |
Total current liabilities | 1122 | 1550 | 2536 | 3380 |
Long-term debt | 960 | 910 | 860 | 760 |
Common stock | 150 | 150 | 150 | 150 |
Retained earnings | 1043 | 1242 | 1434 | 1580 |
Total liabilities and owner's equity | 3275 | 3852 | 4980 | 5870 |
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