Anne's Bakery Case
Anne is a great baker but she needs you to prepare
her financial statements based on the
following information:
Account		Current Yr		Next Yr
Cost of Goods Sold		96,952		122,418
Cash		13,990		21,137
Depreciation Expense		27,370		30,936
Interest Expense		5,950		6,820
Other Fixed Expenses		19,067		24,886
Accounts Payable		24,725		28,003
Net Fixed Assets		120,750		147,115
Sales		190,199		231,840
Accounts Receivable		9,913		12,859
Short-Term Notes Payable		11,270		12,305
Long-Term Debt		60,950		70,150
Inventory		20,861		28,628
Existing Common Stock		38,569		-
1/1 Retained Earnings Balance		13,656		-
New Common Stock Issue		-		12,000
Other information:
% Net Income paid out in dividends				50%
Tax Rate				20%
Complete the following requirements:
A - Prepare Net Income Statements for both years.
B - Prepare Balance Sheets for both years.
C - Prepare Cash Flow Statement for Next Year.
D - What is the liquidity trend for Margie's Bakery?
E - What is your opinion of the her financial strength?