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Chapter 2 Financial Statements, Cash Flow, and Taxes SPREADSHEET PROBLEMS the file Cho2 P14 Build a Model.xlsx on the textbook's (2-14) Build a Model: Begin

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Chapter 2 Financial Statements, Cash Flow, and Taxes SPREADSHEET PROBLEMS the file Cho2 P14 Build a Model.xlsx on the textbook's (2-14) Build a Model: Begin with the partial model in Web site. Financial State- ments, EVA,a. The 2016 sales of Cumberland Industries were $455,000,000, operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets, interest expenses were s the state-plus-federal corporate tax rate was net income out in dividends. Given this information, construct Cumberland's 201 income statement. Also calculate total dividends and the addition to retained earnings. (Hint: Start with the partial model in the file and report all dollar igures in thousands to reduce clutter.) and MVA 8,550,000; 40%, and Cumberland paid 25% of its resource b. The partial balance sheets of Cumberland Industries are shown here. Cumberland issued $10,000,000 of new common stock in 2016, Using this information and the results from Part a, fill in the missing values for common stock, retained earnings. total common equity, and total liabilities and equity Cumberland Industries: Balance Sheets as of December 31 (Thousands of Dollars) 2015 Assets Cash Short-term investments Accounts receivable Inventories s 91,450 $ 74,625 11,400 108,470 38.450 34.982 85,527 Total current assets Net fixed assets Total assets $249,770 $210,234 670001246 $16770 $252670 Liabilities and Equity Accounts payable Accruals Notes payable $ 30,761 30,405 23,109 22,656 12717 14217 S 73,883 59,982 80.263 63,914 Total current liabilities Long-term debt $123,896 $ 90,000 $154,146 Total liabilities Common stock Retained earnings ? $128,774 Total common equity Total liabilities and equity c. Construct the statement of cash flows for 2016

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