Comprehensive Problem 2 St of Cash Flows and Ratios Algo D. Ennis Inc. Income Statement For years ended December 31, 2017 and 2018 D. Ennis Inc. Comparative Balance Sheets December 31, 2018 and 2017 2017 Change 2018 2017 Current assets: $478,000 $430,000 Cash $68,520 (306,000) (251,000 Accounts receivable (net)36,000 46,000 1,000 1380 $53,700 $14,820 30,000 6,000 44,000 2,000 2,200 1,200 2,100 -720 132,000 20,900O Sales (all on credit) Cost of goods sold Gross margin 172,000 179,000 Inventory Prepaid expenses Depreciation expense Other operating expenses Total operating expenses Operating income 37,000 51,000 Other current assets 104,000 86,000 Total current assets 152,900 141,000 137,000 31,000 42,000 Long-term Investments 78,000 54,000 24,000 Other income (expenses) 305,000 (77,800) 227,200 458,100 255,000 50,000 (51,000) 26,800 204,000 23,200 390,000 68,100 Plant assets Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) (4,800) (3,600) Less: accumulated 5,0003,500 Total plant assets (2,200) (2,600) Total assets (12,000) (2,700) depreciation Current liabilities: Current liabilities: Income before income taxes Income taxes expense Net income 29,00039,300 Accounts payable $27,400 $28,000 $-600 (8,700) (11,790) Accrued liabilities $20,300 $27,510 Income taxes payable 3,600 800 31,800 3,000 600 3,000 -2,200 34,000 2,200 Total current liabilities D. Ennis Inc. Statement of Retained Earnings For the year ended December 31, 2018 Long term liabilities Notes Payable Total liabilities 242,000 273,800 180,000 62,000 214,000 59,800 2018 2017 $26,000 Ret. earnings, Jan. 1 Add: net income Deduct: Dividends Increase in retained earnings Ret. earnings, Dec. 31 $0 Stockholders' equity 20,300 27510 Common stock, $5 par value 120,000 0 0 26,000 8,300 176,000 8,300 $390,000 $68,100 120,000 30,000 (12,000). 1,510 Additional paid-in capital 30,000 34,300 184,300 $458,100 8,300 26,000 Retained earnings $34,300 $26,000 Total stockholders' equity Total liabilities and stockholders' equity Other information Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 24,000 24,000 $0.85$115 $0.5 $0.06 $12 $13 Requirement Prepare the cash flows from operations section of D. Ennis Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. D. Ennis Inc Cash Flows from Operating Activities-Indirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operations $ 20,300 Add: Depreciation expense Add: Interest expense Less: Sales 37,000 4,800 41,800 62,100 $ Cash Flows from Oper Horiz Analysis Inc St>
