Comprehensive Problem 2 - St of Cash Flows and Ratios Algo J. Callison Inc. J. Callison 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: $508,000 $457,000 Sales (all on credit) Cash $111,880 $87,100 $24.780 (315.000) (258.000) Accounts receivable (net) Cost of goods sold 34,000 28,000 6,000 193,000 199,000 Gross margin Inventory 53,000 50,000 3,000 Prepaid expenses 1,100 2,500 -1,400 36,000 51,000 Depreciation expense Other current assets 1.570 2.400 -830 Other operating 110.000 91.000 Total current assets 201,550 170,000 31,550 expenses Total operating 146,000 142,000 expenses 47000 Operating income 57000 Long-term Investments 75,000 52,000 23,000 302,000 Other income (expenses) Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) 253,000 49,000 (51,000) 25,800 202.000 23.200 (76,800) 225.200 501.750 Plant assets (5,300) (3.900) Les Less: accumulated 5,300 3.700 Total plant assets (2.500) (3.000) Total assets (13,100) (3,200) Current liabilities: 44,500 53,800 Accounts payable (13.350) (16.140) Accrued liabilities 424.000 27.750 Income before income taxes Income taxes expense $33,300 7.200 $34.000 .000 $-700 1.200 6 upu LICU P uusempi. Income taxes expense Net income (13.350) (16.140) $31.150 $37660 Accrued liabilities Income taxes payable Total current liabilities 7,200 1.100 41,600 6,000 4,000 44,000 1,200 -2.900 2,400 263,000 304,600 195,000 68,000 239,000 65,600 J. Callison Inc. Long term liabilities: Statement of Retained Earnings Notes Payable For the year ended December 31, 2018 Total liabilities 2017 Ret. earnings, Jan. 1 $35,000 $0 Stockholders' equity Add: net income 31,150 37,660 Common stock, $5 par value Deduct: Dividends (19.000) (2660) Additional paid-in capital Increase in retained 12,150 35,000 Retained earnings earnings Ret. earnings, Dec. 31 $47150 $35.000 Total stockholders' equity Total liabilities and stockholders' equity 120,000 30,000 47150 197,150 $501,750 120,000 30,000 35.000 12.150 185,000 12,150 $424.000 $77,750 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 24,000 24,000 $13 $1,57 $0.79 $0.11 $14 $12 Cash Flows Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis from Oper I nc St Bal St Inc St Bal Sheet Ratios Requirement Cash Flows Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Bal St Inc St from Oner Ine St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. J. Callison Inc Partial Income Statement (Vertical analysis For the years ended December 31, 2018 and 2017 2018 100.00% $ 100.00% 508,000 315.000 193.000 457.000 258,000 199.000 Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses Total operating expenses Operating income 36,000 110,000 146,000 47.000 51,000 91,000 142,000 57,000 Cash Flows | Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis from Oper Inc St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial balance sheet for 2017 and 2018. J. Callison Inc. Partial Balance Sheet (Vertical analysis) For the years ended December 31, 2018 and 2017 Liabilities 33,300 Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Notes payable Total liabilities 1,100 41.600 263,000 304.600 34,000 6,000 4,000 44,000 195,000 239,000 Stockholders' Equity Common stock, $5 par Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 120.000 30.000 47,150 197.150 501.750 120,000 30,000 35,000 185,000 424,000 | 100.00% $