Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For problems 7 through 14 use the data from the following financial statements: Partial Income Statement Year Ending 2007 Sales Revere $450.000 COGS $200,000 Fixed

image text in transcribed
For problems 7 through 14 use the data from the following financial statements: Partial Income Statement Year Ending 2007 Sales Revere $450.000 COGS $200,000 Fixed Costs $48.000 Selling. General & Administrative Expenses $ 35.000 Depreciation $ 46,000 Partial Balance Sheet 12/31/2006 LIABILITIES $ 22,000 Notes Payable $ 30.000 Accounts Payable $ 72.000 Leg-term Debe $426,000 OWNERS' FQUITY $144,000 Retained Earnings $ 94,000 Common Stock ASSETS Cash Accounts Receivable Inventories Fixed sets Accumulated depreciation Intangible assets $ 26,000 $ 24,000 S215.000 $ 190,000 S21000 Partial Balance Sheet 12/31/2007 LIABILITIES $ 32.000 Notes Payable $ 19,000 Accounts Payable $ 80,000 Long-term Debe $518,000 OWNERS' FQUITY ASSETS Cash Accounts Receivable Inventories Fixed assets Accumulated depreciation Intangible assets $ 32.000 S 197.000 Retained Earnings $94.000 Common Stock $225,000 7. Complete the partial income statement if the company paid interest expense of S16,000 for 2007 and had an overall tax rate of 40% for 2007. 8. Complete the balance sheet. Hier find accumulated depreciation for 2007 first. 9. Complete the Statement of Retained Earnings for 2007 and determine the dividends paid last year. 10. What are the net fixed assets for the years 2006 and 2007 11. Find the Cash Flow from Assets for 2007 and break it down into its three parts: Operating Cash Flow, Change in Net Working Capital, and Capital Spending. 12. Find the Cash Flow to Creditors for 2007 by parts and total, with the parts being Interest Expense and increases in Borrowing 13. Find the Cash Flow to Owners for 2007 by parts and total, with the parts being Dividends Paid and increases in Berrowing, 14. Verify the Cash Flow Identity: Cash Flow from Assets - Cash Flow to Creditors + Cash Flow to Owners

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Financial Management An Applied Approach

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

5th Edition

0367335417, 978-0367335410

More Books

Students also viewed these Finance questions