Chapter-two Prob East Coast Yachts is a small ma nufacturer of customedyachts on the east coast. East Coast Yachts recently hired Dan Erwin to assist the company with short-term financial planning and also to evaluate the company's fina ncial performance. Dan graduated from college five years ago with a finance degree, and he has been employed in the treasury department of a Fortune 500company Since then The company's past growth has been somewhat hectic, in part due to poor planning. Larissa, the company's president, has asked Dan to analyze the company's cash flows. An outside auditor prepares the company's financial statements. You will find the most recent income statement and the balance sheets for the last two years on the next page. Larissa has also provided the following information: During the year, the company raised $40 million in new long-tem debt and retired $22.8 million in long-term debt. The company also sold $30 million in new stockand repurchased 536 million. The company purchased $60 million in fixed assets and sold $6,786,000 in fized assets. Larissa has asked Dan to prepare the Statement of Cash Flows and calculate the free cash flow using the operating and financial perspective (Cash Flow Identity). Please, provide a brief analysis of the company's performanoe for the year under analysis. 20119 $ S ALL Euchts 2019 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense Earnings before taxes Taxes Net income S S S 2020 617,760,000 435,360,000 73,824,000 20,160,000 88,416,000 11. 112.000 774304,000 30,921,600 46,382,400 S huis Dividends Retained earnings S IS 17,550,960 28,831,440 2019 2020 East Coast Yachts Balance Sheet Current Assets Cash and equivalents Short-term investments Accounts receivables Inventories Other Total current assets Fixed SO 9.752,000 S 1,000,000 $ S19, 116,000 S 17 263/200S 11.108, 800 S 48, 240,000 SI wer 10,032,000 1.200.000 20 208,000 22.656,000 1,184 000 55 280.000 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets $ 408,816,000 $ 462,030,000 $ (94,836,000) $ (114,996,000) $ 313,980,000 $ 347,034,000 $ 6,840,000 $ 6,840,000 $ 320,820,000 $ 353,874,000 $ 269,060,000 $409,154,000 Current liabilities Accounts payable Notes payable Accrued expenses Total current liabilities Long-term debt Total long-term liabilities Stockholder's equity Preferred stock Common slock 23,701,440s 24,546,000 $ 20,220.000 518,725,000 542,000 6,185,000 $ 49,993, 4405 49.456,000 $ 129,260,000 146,560,000 $ 129, 360,000 146,560,000 $3,000,000 $ 30,000,000 $ 3,000,000 40,800,000 Capital surplus $ 12,000,000 $ Accumulated retained earnings $ 157,306,560 $ less treasury stock $ (12,000,000) $ Total equity $ 190,306, S60 $ Total liabilities and shareholders' equity $ 369,060,000 $ 31,200,000 186, 138,000 (48,000,000) 213, 138,000 409, 154,000 Chapter-two Prob East Coast Yachts is a small ma nufacturer of customedyachts on the east coast. East Coast Yachts recently hired Dan Erwin to assist the company with short-term financial planning and also to evaluate the company's fina ncial performance. Dan graduated from college five years ago with a finance degree, and he has been employed in the treasury department of a Fortune 500company Since then The company's past growth has been somewhat hectic, in part due to poor planning. Larissa, the company's president, has asked Dan to analyze the company's cash flows. An outside auditor prepares the company's financial statements. You will find the most recent income statement and the balance sheets for the last two years on the next page. Larissa has also provided the following information: During the year, the company raised $40 million in new long-tem debt and retired $22.8 million in long-term debt. The company also sold $30 million in new stockand repurchased 536 million. The company purchased $60 million in fixed assets and sold $6,786,000 in fized assets. Larissa has asked Dan to prepare the Statement of Cash Flows and calculate the free cash flow using the operating and financial perspective (Cash Flow Identity). Please, provide a brief analysis of the company's performanoe for the year under analysis. 20119 $ S ALL Euchts 2019 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense Earnings before taxes Taxes Net income S S S 2020 617,760,000 435,360,000 73,824,000 20,160,000 88,416,000 11. 112.000 774304,000 30,921,600 46,382,400 S huis Dividends Retained earnings S IS 17,550,960 28,831,440 2019 2020 East Coast Yachts Balance Sheet Current Assets Cash and equivalents Short-term investments Accounts receivables Inventories Other Total current assets Fixed SO 9.752,000 S 1,000,000 $ S19, 116,000 S 17 263/200S 11.108, 800 S 48, 240,000 SI wer 10,032,000 1.200.000 20 208,000 22.656,000 1,184 000 55 280.000 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets $ 408,816,000 $ 462,030,000 $ (94,836,000) $ (114,996,000) $ 313,980,000 $ 347,034,000 $ 6,840,000 $ 6,840,000 $ 320,820,000 $ 353,874,000 $ 269,060,000 $409,154,000 Current liabilities Accounts payable Notes payable Accrued expenses Total current liabilities Long-term debt Total long-term liabilities Stockholder's equity Preferred stock Common slock 23,701,440s 24,546,000 $ 20,220.000 518,725,000 542,000 6,185,000 $ 49,993, 4405 49.456,000 $ 129,260,000 146,560,000 $ 129, 360,000 146,560,000 $3,000,000 $ 30,000,000 $ 3,000,000 40,800,000 Capital surplus $ 12,000,000 $ Accumulated retained earnings $ 157,306,560 $ less treasury stock $ (12,000,000) $ Total equity $ 190,306, S60 $ Total liabilities and shareholders' equity $ 369,060,000 $ 31,200,000 186, 138,000 (48,000,000) 213, 138,000 409, 154,000