Comprehensive Problem 2 - St of Cash Flows and Ratios Algo F. Luchessi Inc. F. Luchessi 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) $619,000 $588,000 Cash $62,730 $32,100 $30,630 Cost of goods sold (345.000) (283.000) Accounts receivable (net) 43,000 36,000 7,000 Gross margin 274,000 305,000 Inventory 48,000 46,000 2,000 Prepaid expenses 1,600 3,500 -1,900 Depreciation expense 37,000 52,000 Other current assets 2.230 3.400 1.170 Other operating 132.000 110.000 Total current assets 157,560 121,000 36,560 expenses Total operating 169,000 162,000 expenses Operating income 105.000 143,000 Long-term Investments 86,000 60,000 26,000 312,000 (5,000) 000 Other income (expenses) Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) Plant assets (3,700) 2700 Less: accumulated depreciation 4,400 Total plant assets (78,600) 233.400 261,000 51,000 (52,000) 26,600 209.000 24.400 390,000 86.960 6,300 476.960 Income before income taxes Income taxes expense Net income (3.500) (4.200) Total assets (14,800) (3,500) Current liabilities: 102,800 139,500 Accounts payable (30.840) (41.850) Accrued liabilities $71.960 $97.650 Income taxes payable Total current liabilities $29,400 7,200 2.400 39,000 $30,000 $-600 6,000 1,200 9.000 -6,600 45,000 -6,000 F. Luchessi Inc. Statement of Retained Earnings For the year ended December 31, 2018 Long term liabilities: Notes Payable Total liabilities 249,000 288,000 185,000 64,000 230,000 58,000 249,000 288,000 185,000 64,000 230,000 58,000 F. Luchessi Inc. Long term liabilities: Statement of Retained Earnings Notes Payable For the year ended December 31, 2018 Total liabilities 2018 2017 Ret, earnings, Jan. 1 $35,000 $0 Stockholders' equity Add: net income 71,960 97,650 Common stock, $5 par value Deduct: Dividends (43.000). (62.650) Additional paid-in capital Increase in retained 28,960 earnings 35,000 Retained earnings Ret. earnings, Dec. 31 $63.960 $35.000 Total stockholders' equity Total liabilities and stockholders' equity 100,000 25,000 63.960 100,000 0 25,000 0 35.000 28.960 160,000 28,960 $390.000 $86.960 188,960 $476.960 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 20,000 $3.6 $2.15 $16 20,000 $4.88 $3.13 $13 Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare the cash flows from operations section of F. Luchessi Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. F. Luchessi Inc. Cash Flows from Operating Activities--Indirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Horiz Analysis Inc St >
