Case 1 Part 1 Financial Statements, Cash Flows, Financial Planning Warren Manufacturing, Inc.

Larissa Warren started Warren Manufacturing several years ago. Warren manufactures electronic controls for a variety of manufacturing applications. The company is organized as an LLC. The Company is located in Willington NC. The industry is fragmented with few competitors. Warren Manufacturing has a very good reputation in the industry for quality and delivery. Larissas background is engineering so her financial skills are limited. As a result the financial information being supplied although accurate is not in financial statement form.

Larissa has hired you to clean things up from a financial statement perspective. She has also asked you to prepare and comment on the cash flows (operating cash flow, cash flow from assets, to creditors to shareholder) for 2019. She also want for you explain what they mean and impact on companys performance.

Larissa has provided you the following information, although deemed accurate, is not in a very useable form.

Warren Manufacturing currently pays out 50 percent of net income as dividends. The effective tax rate is 30%.

You are to prepare the following in good presentation form):

An income statement for 2018 and 2019.

A balance sheet for 2018 and 2019.

Operating cash flow for each year.

Cash flow from assets for 2019.

Cash flow to creditors for 2019.

Cash flow to stockholders for 2019.

RA 3494 11:29 PM Larissa has provided you the following information, although deemed accurate, is not in a very useable form. Warren Manufacturing 2018 2019 Cost of Goods Sold 203,963 257.528 Cash 29.429 31.267 Other Expenses 40.110 52.351 Depreciation 57,576 65,076 Accounts Payable 52,015 57.708 Interest 12,530 14,345 Taxes (30%) Sales 400,111 487.712 Noles Payable (Current) 23.700 25,585 Dividends Addition to Retained Earnings Accounts Receivable 20,854 27.050 Common Stock 50,000 75.000 Inventory 43,884 60,222 Dividends 50% of Net Income Net Fixed Assets 254,017 316.525 Long Term Debt 128.218 148.084 Retained Earnings 94.243 Warren Manufacturing currently pays out 50 percent of net income as dividends. The effective tax rate is 30%. You are to prepare the following in good presentation form): 1. An income statement for 2018 and 2019 2. A balance sheet for 2018 and 2019. 3 Onerating cash flow for each year B = 29811:29 PM 29.429 31,267 40.110 52,351 57,57 65.076 52015 57.708 12,530 14,345 400,111 23,700 487.712 25,685 Cash Other Expenses Depreciation Accounts Payable Interest Taxes (30%) Sales Notes Payable (Current) Dividends Addition to Retained Eaming Accounts Receivable Common Stock Inventory Dividends 50% of Net Income Net Fixed Assets Long Term Debt Retained Earnings 20,854 50,000 43,884 27.050 75.000 60,222 254,017 125.218 94,243 316,625 143.084 Warren Manufacturing currently pays out 50 percent of net income as dividends. The effective tax rate is 30%. You are to prepare the following in good presentation form): 1. An income statement for 2018 and 2019. 2. A balance sheet for 2018 and 2019. 3. Operating cash flow for each year. 4. Cash flow from assets for 2019. 5. Cash flow to creditors for 2019. 6. Cash flow to stockholders for 2019. B 7 A U