Comprehensive Problem 2 - St of Cash Flows and Ratios Algo R. Roberts Inc. R. Roberts Inc. Income Statement Comparative Balance Sheets For years ended December 31, 2017 and 2018 December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit) $498,000 $448,000 Cash $66,180 $48 300 $17,880 Cost of goods sold (312,000) (256,000) Accounts receivable [net) 41,000 34,000 7,000 Gross margin 186,000 192,000 Inventory 50,000 48.000 2,000 Prepald expenses 1,100 2.400 -1,30 0 Depreciation expense 37,000 52,000 Other current assets 1 510 2 300 -790 Other operating expenses 108,000 90.000 Total current assets 159.790 135,000 24,790 Total operating expenses 145,000 142,000 Operating Income 41,000 50.000 Long-term Investments 84,000 58,000 26,000 Other Income (expenses) Plant assets 310,000 259,000 51,000 Interest expense (5,100) (3,800) Less: accumulated depreciation (78.600) (52,000) 26,600 Gain on sale of investments 5,200 3.600 Total plant assets 231,400 207000 24,400 Loss on sale of plant assets (2,400) (2.900) Total assets 475,190 400,000 75,190 Total other income (expenses) (12,700) (3,100) Current llabilities: Income before income taxes 38,700 46,900 Accounts payable $31,300 $32,000 $-700 Income taxes expense (11,610) (14.070) Accrued llabottles 6,000 5,000 1,000 Net Income $27090 $32,830 Income taxes payable 800 3,000 -2,200 Total current llabllitles 38 10 0 40.000 -1,900 R. Roberts Inc. Long term llabilities: Statement of Retained Earnings Notes Payable 256,000 190,000 66.000 For the year ended December 31, 2018 Total llabilities 294.100 230,000 64,100 2018 2017 Ret. earnings, Jan. 1 $32,000 50 Stockholders' equity Add: net Income 27,090 32,830 Common stock, $5 par value 110,000 110,000 Deduct: Dividends (16,00 0) 830) Additional pald-In capital 28,000 28,000 Increase In retained earnings 11,090 32,000 Retained earnings 43,090 32,000 11,090 Ret earnings, Dec. 31 $43,090 $32,000 Total stockholders equity 181,090 170,000 11,090 Total llabilities and stockholders' equity $475 190 $400.000 $75,190 Other Information: Shares of common stock outstanding 22,000 22,000 Earnings per share $1.23 $1.49 Dividends per share $0.73 $0.04 Market price per share, common $14 $12 stockCash Flows Horiz Analysis |Horiz Analysis |Vertic Analysis Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial balance sheet for 2017 and 2018. R. Roberts Inc. Partial Balance Sheet (Vertical analysis) For the years ended December 31, 2018 and 2017 Liabilities 2018 % 2017 % Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Notes payable 256,000 190,000 Total liabilities Stockholders' Equity Common stock, $5 par Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity
