Larissa Warren started Warren Manufacturing several years ago. Warren manufactures electronic controls for a variety of manufacturing applications. The company is organized as an LLC. The Company is located in Willington NC. The industry is fragmented with few competitors. Warren Manufacturing has a very good reputation in the industry for quality and delivery. Larissa’s background is engineering so her financial skills are limited. As a result the financial information being supplied although accurate is not in financial statement form.

Larissa has hired you to “clean things up” from a financial statement perspective. She has also asked you to prepare and comment on the “cash flows” (operating cash flow, cash flow from assets, to creditors to shareholder) for 2019. She also want for you explain what they mean and impact on company’s performance.

Larissa has provided you the following information, although deemed accurate, is not in a very useable form.

Warren Manufacturing currently pays out 50 percent of net income as dividends.
The effective tax rate is 30%.

You are to prepare the following in good presentation form):

An income statement for 2018 and 2019.

A balance sheet for 2018 and 2019.

Operating cash flow for each year.

Warren Manulacturing 2018 2019 Cost of Goods Sold Cash other Expenses Depreciation Accounts Payable Interest Taxes (30%) Sales Notes Payable (Current) Dividends Addition to Retained Earnings Accounts Receivable Common Stock Inventory Dividends S0% of Net Income Net Fixed Assets Long Term Debt Retained Earnings 203,963 257,528 29,429 31.267 40,110 52.351 65,076 57,576 57,708 14.345 52,015 12,530 400,111 487,712 23,700 25,885 20,854 27,050 50,000 75.000 43,884 60.222 254,017 316.825 128,218 148,084 94,243