Cases CASE 1: AUSTIN INDUSTRIES In 2013, the management committee of Austin Industries Inc. would like to invest $75,000 in property, plant, and equipment. The board of directors would like to approve the decision, but first they must find out how much cash will be generated by the operations in 2013. The members of the board also have the options of raising more funds from the shareholders and increasing their long-term borrowings. From the information shown on Austin Industries Inc.'s 2013 projected statement of financial position, identify the cash inflows and the cash outflows for the year 2013. Austin Industries Inc. Statements of Financial Position As at December 31 Non-current assets Property, plant, and equipment Accumulated depreciation/amortization Total non-current assets Current assets Inventories Trade receivables (in $000s) 2013 2012 150 75 (41) (26) 109 49 75 53 30 22 Term deposits 11 Cash 7 15 Total current assets 112 101 Total assets 221 150 Equity Share capital 64 38 Retained earnings 95 67 Total equity 159 105 Non-current liabilities Long-term borrowings 26 8 Current liabilities Trade and other payables 18 15 Notes payable 3 15 Other current liabilities 15 7 Total current liabilities 36 37 Total liabilities 62 45 Total equity and liabilities 221 150 NEL