Assignment instructions are as follows: 1. Use the information in the provided Income Statement and Balance Sheet to create the 2018 Statement of Cash Flows for H&K Inc. This should be created on the appropriate Tab of the Excel Workbook Template provided on BlackBoard. 2. Formulas: a. Use Excel to setup the Statement of Cash Flows by linking the values from the Income Statement and the Balance Sheet b. Use Excel formulas to calculate all totals and sub-totals. 3. Complete the ratio calculations for 2018 on the appropriate tab using the income Statement and Balance Sheet. All ratios should be linked back to your financial statements. H & K INC. Income Statement For the Years Ended December 31, 2018 and 2017 $ in millions vo AWN- 2018 2017 7 Revenue 8 Net sales Cost of merchandise sold 10 Gross Profit $ 44,452 $ 37,043 24,969 20,807 19,483 16,236 7,182 12 Operating Expenses Selling, general and administrative Depreciation Amortization 16 Operating income 2,550 5,985 2,499 45 9,706 7,707 205 169 20 18 Interest expense, net 19 Gain/(Loss) on sale of property & equip Income before income taxes 21 22 Provision for income taxes 9,670 7,650 2,031 1,762 Net income 7,639 $ 5,888 Income Statement Balance Sheet Cash Flow Stateme 1.511 1.160 20 Current Liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total Current Liabilities 1.251 S 1,206 130 127 2,7142 .859 27 Non-current liabilities Long-term debt Total liabilities 5,900 5,483 31 Shareholders' Equity Common stock; .01 par value; 9,000 share authorized; 370 and 367 shares issued & outstanding respectively Paid in capital Treasury stock, at cost Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,927 (9,714) 21.231 14.448 23,062 2,723 (8,744) 13,609 7,591 15,933 $ S 39 | Additional Information: The company paid dividends of $16 in 2018 The company purchased treasury stock of S970 during 2018, and sold common stock for $204 during 2018 No other stock transactions took place The company purchased $2,091 in equipment during the year. In addition, equipment was sold for $476, the equipment had a book value at the time of sale of $307. There were no purchases or sales of intangible assets The company made payments of $176 on its debt obligations, and took an additional $610 in debt during the year. Income StatementBalance Sheet Cash Flow Statement Ratios DIE LEGH Current Ratio = Acid-Test Ratio = AR Turnover = Days Sales Uncollected = Inventory turnover = Days sales in Inventory = Total Asset Turnover = Debt to Equity = Times Interest Earned = Income Statement Balance Sheet Cash Flow Statement Ratios Assignment instructions are as follows: 1. Use the information in the provided Income Statement and Balance Sheet to create the 2018 Statement of Cash Flows for H&K Inc. This should be created on the appropriate Tab of the Excel Workbook Template provided on BlackBoard. 2. Formulas: a. Use Excel to setup the Statement of Cash Flows by linking the values from the Income Statement and the Balance Sheet b. Use Excel formulas to calculate all totals and sub-totals. 3. Complete the ratio calculations for 2018 on the appropriate tab using the income Statement and Balance Sheet. All ratios should be linked back to your financial statements. H & K INC. Income Statement For the Years Ended December 31, 2018 and 2017 $ in millions vo AWN- 2018 2017 7 Revenue 8 Net sales Cost of merchandise sold 10 Gross Profit $ 44,452 $ 37,043 24,969 20,807 19,483 16,236 7,182 12 Operating Expenses Selling, general and administrative Depreciation Amortization 16 Operating income 2,550 5,985 2,499 45 9,706 7,707 205 169 20 18 Interest expense, net 19 Gain/(Loss) on sale of property & equip Income before income taxes 21 22 Provision for income taxes 9,670 7,650 2,031 1,762 Net income 7,639 $ 5,888 Income Statement Balance Sheet Cash Flow Stateme 1.511 1.160 20 Current Liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total Current Liabilities 1.251 S 1,206 130 127 2,7142 .859 27 Non-current liabilities Long-term debt Total liabilities 5,900 5,483 31 Shareholders' Equity Common stock; .01 par value; 9,000 share authorized; 370 and 367 shares issued & outstanding respectively Paid in capital Treasury stock, at cost Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,927 (9,714) 21.231 14.448 23,062 2,723 (8,744) 13,609 7,591 15,933 $ S 39 | Additional Information: The company paid dividends of $16 in 2018 The company purchased treasury stock of S970 during 2018, and sold common stock for $204 during 2018 No other stock transactions took place The company purchased $2,091 in equipment during the year. In addition, equipment was sold for $476, the equipment had a book value at the time of sale of $307. There were no purchases or sales of intangible assets The company made payments of $176 on its debt obligations, and took an additional $610 in debt during the year. Income StatementBalance Sheet Cash Flow Statement Ratios DIE LEGH Current Ratio = Acid-Test Ratio = AR Turnover = Days Sales Uncollected = Inventory turnover = Days sales in Inventory = Total Asset Turnover = Debt to Equity = Times Interest Earned = Income Statement Balance Sheet Cash Flow Statement Ratios