After-class Task #1

Financial Statements

Use the information for NearPerfect Co. to work the problems.

2009 2010

Sales $1,145 $1,200

Depreciation 128 128

Cost of goods sold 450 537

Other expenses 110 98

Interest 85 96

Cash 640 735

Receivables 912 967

Notes payable 122 103

Long-term debt 2,349 2,666

Net fixed assets 5,556 5,637

Accounts payable 664 659

Dividends 100 110

Inventory 1,440 1,489

1. Draw up an income statement and a balance sheet for NearPerfect for 2009 and 2010. The tax rate is 34%.

2. For 2010, calculate NearPerfects cash flow from assets, cash flow to bondholders, and cash flow to stockholders.