Can you help with the financial statements, cash flow and taxes?
Please, see instructions below in the image. Thank you.
Financial statements, cash flow and taxes The balance sheets at the close of 2018 and 2019 of the Gem Company are shown below: Particular 2018 2019 Cash $102,950 $89.825 Accounts Receivable 103,465 85,627 Inventories 38,544 35,082 Total current assets 244,959 210,534 Property, plant, and equipment 67,265 42,536 Total assets 312,224 253,070 Accounts Payable 30,861 23,209 Accumulations 30,577 22,756 Obligations payable 16,817 14,317 Total current liabilities 78,255 60,282 Long term debts 76,364 64,014 Total liabilities 154,619 124.296 Common actions 100,000 90,100 Retained earnings 57,605 38,874 Total stockholders' equity 157,605 128,974 Total liabilities plus equity $312,224 S253,270 Instructions: In 2019. Gem's Company achieved sales of $330 million and an EBITDA of 17% of sales. Fixed assets depreciation or amortization was 11% and interest paid was $2.0 million. On the other hand, the tax rate was 35% and 38% of net income is allocated to dividends. 1) Prepare an income statement taking into consideration the data presented. 2) Prepare the capital statement for the period ending December 31, 2019. 3) Taking into consideration that Gem's Company does not have surplus cash available, please determine the free cash flow and the operating working capital. 4) Explain the effect it would have on the taxes paid by shareholders and the company if Gem's Company increased its dividend rate. 5) Calculate the economic value added (EVA) and the market value added (MVA) in 2019, considering that the cost of capital after taxes is 12% and the price of shares of Gem's Company is $ 20 with 9 million shares on circulation. Financial statements, cash flow and taxes The balance sheets at the close of 2018 and 2019 of the Gem Company are shown below: Particular 2018 2019 Cash $102,950 $89.825 Accounts Receivable 103,465 85,627 Inventories 38,544 35,082 Total current assets 244,959 210,534 Property, plant, and equipment 67,265 42,536 Total assets 312,224 253,070 Accounts Payable 30,861 23,209 Accumulations 30,577 22,756 Obligations payable 16,817 14,317 Total current liabilities 78,255 60,282 Long term debts 76,364 64,014 Total liabilities 154,619 124.296 Common actions 100,000 90,100 Retained earnings 57,605 38,874 Total stockholders' equity 157,605 128,974 Total liabilities plus equity $312,224 S253,270 Instructions: In 2019. Gem's Company achieved sales of $330 million and an EBITDA of 17% of sales. Fixed assets depreciation or amortization was 11% and interest paid was $2.0 million. On the other hand, the tax rate was 35% and 38% of net income is allocated to dividends. 1) Prepare an income statement taking into consideration the data presented. 2) Prepare the capital statement for the period ending December 31, 2019. 3) Taking into consideration that Gem's Company does not have surplus cash available, please determine the free cash flow and the operating working capital. 4) Explain the effect it would have on the taxes paid by shareholders and the company if Gem's Company increased its dividend rate. 5) Calculate the economic value added (EVA) and the market value added (MVA) in 2019, considering that the cost of capital after taxes is 12% and the price of shares of Gem's Company is $ 20 with 9 million shares on circulation
