Question
Carter Corporation Income Stmt and Comparative Balance Sheet Refer to the following financial statements for Crosby Corporation: CARTER CORPORATION Income Statement For the Year Ended
Carter Corporation Income Stmt and Comparative Balance Sheet
Refer to the following financial statements for Crosby Corporation:
CARTER CORPORATION Income Statement For the Year Ended December 31, 20X2 | |||
Sales |
| $ | 3,000,000 |
Cost of goods sold |
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| 2,544,000 |
Gross profit |
| $ | 456,000 |
Selling and administrative expense |
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| 90,000 |
Depreciation expense |
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| 100,000 |
Operating income |
| $ | 266,000 |
Interest expense |
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| 66,000 |
Earnings before taxes |
| $ | 200,000 |
Taxes |
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| 80,000 |
Earnings after taxes |
| $ | 120,000 |
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Statement of Retained Earnings For the Year Ended December 31, 20X2 | ||
Retained earnings, balance, January 1, 20X2 | $ | 730,000 |
Add: Earnings available to common stockholders, 20X2 |
| 120,000 |
Deduct: Cash dividends declared and paid in 20X2 |
| 100,000 |
Retained earnings, balance, December 31, 20X2 | $ | 750,000 |
Comparative Balance Sheets For 20X2 and 20X1 | |||||||
| Year-End 20X2 |
| Year-End 20X1 | ||||
Assets |
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Current assets: |
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Cash |
| $ | 50,000 |
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| $ | 55,000 |
Accounts receivable (net) |
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| 350,000 |
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| 315,000 |
Inventory |
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| 300,000 |
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| 215,000 |
Prepaid expenses |
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| 0 |
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| 25,000 |
Total current assets |
| $ | 700,000 |
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| $ | 610,000 |
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Gross plant and equipment | $ 1,800,000 |
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| $ 1,470,000 |
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Less: Accumulated depreciation | 500,000 |
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| 400,000 |
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Net plant and equipment |
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| 1,300,000 |
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| 1,070,000 |
Total assets |
| $ | 2,000,000 |
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| $ | 1,680,000 |
Liabilities and Stockholders Equity |
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Current liabilities: |
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Accounts payable |
| $ | 60,000 |
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| $ | 30,000 |
Notes payable |
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| 100,000 |
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| 60,000 |
Accrued expenses |
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| 140,000 |
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| 130,000 |
Total current liabilities |
| $ | 300,000 |
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| $ | 220,000 |
Long-term liabilities: |
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Bonds payable, 20X2 |
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| 800,000 |
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| 580,000 |
Total liabilities |
| $ | 1,100,000 |
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| $ | 800,000 |
Stockholders equity: |
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Preferred stock, $100 par value |
| $ | 0 |
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| $ | 0 |
Common stock, $1 par value |
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| 50,000 |
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| 50,000 |
Capital paid in excess of par |
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| 100,000 |
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| 100,000 |
Retained earnings |
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| 750,000 |
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| 730,000 |
Total stockholders equity |
| $ | 900,000 |
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| $ | 880,000 |
Total liabilities and stockholders equity |
| $ | 2,000,000 |
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| $ | 1,680,000 |
Cash Identity Stmt | ||||||||
Cash Flow From Assets | Cash Flow to Creditors | |||||||
Operating Cash Flow: | Interest Expense | answer | ||||||
EBIT | Answer | Less: Net New Borrowing (LTD) | answer | |||||
+Depreciation | Answer | Cash Flow to Creditors | answer - | |||||
- Taxes | Answer | |||||||
Operating Cash Flow | - answer | |||||||
Cash Flow to Owners | ||||||||
Less: Net Capital Spending | Dividends(PS) | answer | ||||||
Ending Fixed Assets - Beginning Fixed Assets | answer | Dividends(CS) | answer | |||||
+Depreciation | answer | Less: Net New Borrowing from Owners | - answer | |||||
Net Capital Spending | answer - | Cash Flow to Owners | Answer- | |||||
Less: Change in Net Working Capital | ||||||||
Ending NWC - Beginning NWC | answer | answer - | ||||||
CASH FLOW FROM ASSETS | $ answer - | = | CF TO CREDITOR + CF TO OWNERS | $ answer- |
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