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Can you fill out Statement of retained earnings and statement of cash flows? This is all the information from the excel. Statement of Retained Earnings
Can you fill out Statement of retained earnings and statement of cash flows? This is all the information from the excel.
| Statement of Retained Earnings | Year 1 | Year 2 | ||
| Beginning retained earnings | ||||
| +Net Income | ||||
| -dividends | ||||
| Ending retained earnings | ||||
| Statement of Cash Flows | ||||
| Year 1 | Year 2 | |||
| Net Income | ||||
| + Depreciation | ||||
| + (increase) decrease in A.R. | ||||
| + (increase) decrease in inventory | ||||
| + (increase) decrease in prepaid exp. | ||||
| + increase (decrease) in A.P. | ||||
| + increase (decrease) in accrued taxes | ||||
| + increase (decrease) in deferred taxes | ||||
| =Cash Flow from operations | ||||
| + (increase) decrease in marketable sec. | ||||
| + (increase) decrease in PPE | ||||
| =Cash Flow from investing | ||||
| + increase (decrease) in loans and notes. | ||||
| + increase (decrease) in LTD | ||||
| + increase (decrease) in common stock | ||||
| - dividends | ||||
| - treasury stock | ||||
| =Cash flow from financing | ||||
| Beginning cash | ||||
| +Change in cash | ||||
| Ending cash |
| Create pro forma financial statements from the information provided below | |||||||||
| Year 1 | |||||||||
| Sales revenues increase 3.5% | |||||||||
| Gross margin is 50% | |||||||||
| SG&A increases 1.2% | |||||||||
| $2000 of PP&E is purchased on January 1, | |||||||||
| New PP&E is depreciated over 10 years | |||||||||
| Inventory grows in line with COGS | |||||||||
| Assume that all other asset accounts grow in line with sales (3.5%). | |||||||||
| Accounts Payable grow in line with COGS | |||||||||
| Accrued and deferred income taxes grows in line with taxes. | |||||||||
| Long-term debt declines by $200 | |||||||||
| Unless otherwise stated, liability accounts grow in line with sales (3.5%) | |||||||||
| Treasury Stock purchases equal $300 | |||||||||
| Average interest cost of all interest bearing debt is 1.6% | |||||||||
| Dividend payout ratio is 22% | |||||||||
| Tax rate is 35% | |||||||||
| Funding requirements should be financed with short-term debt | |||||||||
| Y2 | |||||||||
| Sales revenue decline by 2.0% | |||||||||
| Gross margin declinesto 48% | |||||||||
| Inventory grows in line with COGS | |||||||||
| SG&A declines by 1% | |||||||||
| $800of PP&E is sold on January 1 for $600 cash. (Gross =$800, Accumulated depreciation = $200) | |||||||||
| Annual depreciation expense declines by $ 80 | |||||||||
| Assume that all other asset accounts grow in line with sales. (-2.0%) | |||||||||
| Accounts Payable grow in line with COGS | |||||||||
| Long-term debt declines by $150 | |||||||||
| Accrued and deferred income taxes grows in line with taxes. | |||||||||
| Unless otherwise stated, liability accounts grow in line with sales (-2.0%) | |||||||||
| Treasury Stock purchase is $100. | |||||||||
| Average interest cost of all interest bearing debt is 1.8% | |||||||||
| Dividend payout ratio changes to 25% | |||||||||
| Tax rate is 35% | |||||||||
| Funding requirements should be financed with short-term debt | |||||||||
| Excess cash is used to retire short-term debt | |||||||||
| 100 shares of $1 par value common stock is issued for $300. | |||||||||
| Do not add significant amounts to cash unless Loans & notes payable is drawn down to zero. | |||||||||
| Income Statement | ||||
| Year 0 | Year 1 | Year 2 | ||
| Revenues | 17,000 | 17,595 | 17,243 | |
| Cost of goods sold | 9,200 | 9,522 | 9,332 | |
| Gross profit | 7,800 | 8,073 | 7,911 | |
| SG&A | 4,790 | 4,846 | 4,797 | |
| Depreciation | 1,700 | 1,700 | 1,620 | |
| Operating Profit | 1,310 | 1,527 | 1,494 | |
| Interest expense | 155 | 24 | 27 | |
| Income before taxes | 1,155 | 1,503 | 1,467 | |
| Taxes @35% | 404 | 526 | 514 | |
| Net Income | 751 | 977 | 953 | |
| Dividends | 225 | 215 | 238 | |
| Addition to retained earnings | 526 | 762 | 715 |
| Balance Sheet | ||||
| Assets | ||||
| Year 0 | Year 1 | Year 2 | ||
| Cash and cash equivalents | 640 | 640 | 640 | |
| Marketable securities | 28 | 28 | 28 | |
| Accounts Receivables | 8,200 | 8,487 | 8,317 | |
| Inventory | 3,142 | 3,480 | 3,480 | |
| Prepaid expen. & other assets | 1,323 | 1,369 | 1,342 | |
| Total Current Assets | 13,333 | 14,004 | 13,807 | |
| Plant property and equipment (gross) | 7,607 | 7,607 | 7,607 | |
| Accumulated Depreciation | 3,000 | 3,200 | 3,320 | |
| PP&E (net) | 4,607 | 6,407 | 5,487 | |
| Total Assets | 17,940 | 20,411 | 19,294 |
| Liabilities & Shareholders' Equity | ||||
| Year 0 | Year 1 | Year 2 | ||
| Accounts payable | 3,148 | 3,470 | 3,280 | |
| Loans & notes payable (plug) | 2,923 | 3,923 | 4,113 | |
| Accrued income taxes | 1,322 | 1,444 | 1,432 | |
| Total Current Liabilities | 7,393 | 8,837 | 8,825 | |
| Long-term debt | 2,300 | 2,100 | 1,950 | |
| Defered income taxes | 195 | 317 | 305 | |
| Shareholders' Equity | ||||
| Common Stock at par | 860 | 860 | 960 | |
| Capital Surplus | 863 | 863 | 863 | |
| Retained earnings | 6,429 | 7,191 | 7,906 | |
| Less treasury stock | (100) | (200) | (300) | |
| Total equity | 8,052 | 8,714 | 9,429 | |
| Total liabilities & shareholder equity | 17,940 | 19,968 | 20,509 |
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IT Auditing Using Controls To Protect Information Assets
Authors: Chris Davis, Mike Schiller, Kevin Wheeler
3rd Edition
1260453227, 978-1260453225
