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Awaking Clothing is a fashion brand that specializes in selling high-end clothing. The founder, Jane Smith, is responsible for designing and marketing the products but
Awaking Clothing is a fashion brand that specializes in selling high-end clothing. The founder, Jane Smith, is responsible for designing and marketing the products but has limited experience in manaing business operations. Consequently, the financial records are not well maintained. Despite this, the brand has gained popularity through positive word of mouth from satisfied customers. Jane plans to expand the business by open ing a new store in New York and supplying other retailers. She intends to finance this by borrowing money from banks and additional investors. A financial analyst was hired to evaluate the company's performance over the past year. After carefully reviewing the records, she has gathered all the necessary information. Awaking Clothing currently retains back 75 percent of its net income and has a corporation tax rate of 25%. You are the financial analyst's assistant, and he has asked you to prepare the following: 1- An income statement for 2021 and 2022 . 2- A balance sheet for 2021 and 2022. 3- Operating cash flow for each year. 4. Cash flow from assets for 2022. 5- Cash flow to creditors for 2022. 6- Cash flow to stockholders for 2022
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