Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Complete a Cash Flow Statement and a 1 1 . 5 page type written recommendation based upon your analysis. Crosby Corporation Nadine Crosby recently took
Complete a Cash Flow Statement and a page type written recommendation based upon your analysis. Crosby Corporation Nadine Crosby recently took over the full operations of the Cosby Company after the passing of her aunt. The company manufactures industrial strength shelving. She is an engineer and has worked for many years with the company, most recently as the head of production. Ms Crosby is very comfortable with her position in manufacturing, but as the newly appointed CEO, she feels it vital for her to better understand the companys financial position. In particular, she wishes to learn more about the cash flow. You have been engaged by her as an outside consultant to help her better understand the cash flows of Crosby Corporation. To complete the assignment, you must prepare a Statement of Cash Flows for and then address the following questions in your memo to Ms Crosby: Why is it so important to understand cash flows? What is the general relationship between net income and net cash flows from operating activities for the firm in Has the buildup in plant and equipment in been financed in a satisfactory manner? Compute the book value per common share of stock for and Include any other observations you have about the companys Statement of Cash Flows. Assignment Please prepare your written comments in a clear and concise memorandum to Ms Crosby. Use a standard memorandum format. Attach a separate sheet presenting a Statement of Cash Flows prepared in proper form. Refer to Exhibits and in the text for reference. Crosby Corporation Income Statement For the Year Ended December Sales $ Cost of goods sold Gross profit $ Selling & administrative expenses Depreciation Expense Operating Income $ Interest expense Net income before taxes $ Taxes Net income $ Crosby Corporation Summary of Changes to Retained Earnings For the Year Ended December Retained Earnings Balance, $ Add: Net Income Less: Preferred Stock Dividends Paid Less: Common Stock Dividends Paid Retained Earnings Balance, $ Shares Outstanding Earnings per Share $ Crossby Corporation Comparative Balance Sheets Assets DecDec Cash $ $ Accounts Receivable net Inventory Prepaid Expenses Total current assets Investments longterm securities Plant & equipment Less: Accumulated Depreciation Net plant & equipment Total Assets $ $ Liabilities & Stockholders' Equity Accounts payable $ $ Notes Payable Accrued expenses Total current liabilites Bond Payable Total liabilities Preferred Stock, $ Par Common stock $ par value Capital paid in excess of par Retained earnings Total stockholders' equity Total Liabilities & Stockolders' Equity$ $
Complete a Cash Flow Statement and a page type written recommendation based upon
your analysis.
Crosby Corporation
Nadine Crosby recently took over the full operations of the Cosby Company after the passing of
her aunt. The company manufactures industrial strength shelving. She is an engineer and has
worked for many years with the company, most recently as the head of production. Ms Crosby
is very comfortable with her position in manufacturing, but as the newly appointed CEO, she
feels it vital for her to better understand the companys financial position. In particular, she
wishes to learn more about the cash flow. You have been engaged by her as an outside
consultant to help her better understand the cash flows of Crosby Corporation.
To complete the assignment, you must prepare a Statement of Cash Flows for and then
address the following questions in your memo to Ms Crosby:
Why is it so important to understand cash flows?
What is the general relationship between net income and net cash flows from operating
activities for the firm in
Has the buildup in plant and equipment in been financed in a satisfactory manner?
Compute the book value per common share of stock for and
Include any other observations you have about the companys Statement of Cash Flows.
Assignment
Please prepare your written comments in a clear and concise memorandum to Ms Crosby. Use
a standard memorandum format. Attach a separate sheet presenting a Statement of Cash
Flows prepared in proper form. Refer to Exhibits and in the text for reference. Crosby Corporation
Income Statement
For the Year Ended December
Sales $
Cost of goods sold
Gross profit $
Selling & administrative expenses
Depreciation Expense
Operating Income $
Interest expense
Net income before taxes $
Taxes
Net income $
Crosby Corporation
Summary of Changes to Retained Earnings
For the Year Ended December
Retained Earnings Balance, $
Add: Net Income
Less: Preferred Stock Dividends Paid
Less: Common Stock Dividends Paid
Retained Earnings Balance, $
Shares Outstanding
Earnings per Share $
Crossby Corporation
Comparative Balance Sheets
Assets DecDec
Cash $ $
Accounts Receivable net
Inventory
Prepaid Expenses
Total current assets
Investments longterm securities
Plant & equipment
Less: Accumulated Depreciation
Net plant & equipment
Total Assets $ $
Liabilities & Stockholders' Equity
Accounts payable $ $
Notes Payable
Accrued expenses
Total current liabilites
Bond Payable
Total liabilities
Preferred Stock, $ Par
Common stock $ par value
Capital paid in excess of par
Retained earnings
Total stockholders' equity
Total Liabilities & Stockolders' Equity$ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started