G. Mauck Inc. G. Mauck 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) $518,000 $466,000 Cash $85,640 $59,900 $25,740 Cost of goods sold (318,000) (261,000) Accounts receivable (net) 36,000 30,000 6,000 Gross margin 200,000 205,000 Inventory 55,000 52,000 3,000 Prepaid expenses 1,200 2,600 -1,400 Depreciation expense 37,000 51,000 Other current assets 1,640 2,500 -860 Other operating expenses 112,000 93,000 Total current assets 179,480 147,000 32,480 Total operating expenses 149,000 144,000 Operating income 51,000 61,000 Long-term Investments 78,000 54,000 24,000 Other income (expenses) Plant assets 305,000 255,000 50,000 Interest expense (5,400) (4,000) Less: accumulated depreciation (77,800) (51,000) 26,800 Gain on sale of investments 5,400 3,800 Total plant assets 227,200 204,000 23,200 Loss on sale of plant assets (2,600) (3,100) Total assets 484,680 405,000 79,680 Total other income (expenses) (13,400) (3,300) Current liabilities: Income before income taxes 48,400 57,700 Accounts payable $35,300 $36,000 $-700 Income taxes expense (14,520) (17,310) Accrued liabilities 2,400 2,000 400 Net income $33,880 $40,390 Income taxes payable 1,100 4,000 -2,900 Total current liabilities 38,800 42,000 -3,200G. Mauck Inc. Long term liabilities: Statement of Retained Earnings Notes Payable 269,000 200,000 69,000 For the year ended December 31, 2018 Total liabilities 307,800 242,000 65,800 2018 2017 Ret. earnings, Jan. 1 $38,000 $0 Stockholders' equity Add: net income 33,880 40,390 Common stock, $5 par value 100,000 100,000 Deduct: Dividends (20,000) (2,390) Additional paid-in capital 25,000 25,000 OO Increase in retained earnings 13,880 38,000 Retained earnings 51,880 38,000 13,880 Ret. earnings, Dec. 31 $51,880 $38,000 Total stockholders' equity 176,880 163,000 13,880 Total liabilities and stockholders' equity $484,680 $405,000 $79,680 Other information: Shares of common stock outstanding 20,000 20,000 Earnings per share $1.69 $2.02 Dividends per share $1 $0.12 Market price per share, common stock $15 $13Cash Flows Horiz Analysis |Horiz Analysis |Vertic Analysis Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare the cash flows from operations section of G. Mauck Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. G. Mauck 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: Cash Flows Horiz Analysis : Horiz Analysis |Vertic Analysis Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. Enter decreases as negative amounts/percents. G. Mauck Inc. PARTIAL INCOME STATEMENT (HORIZONTAL ANALYSIS) For the years ended December 31, 2017 and 2018 Increase/decrease 2018 2017 Amount Percent Sales $ 466,000 Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses 93,000 Total operating expenses Operating income Cash Flows Horiz Analysis : Horiz Analysis : Vertic Analysis Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial balance sheets for 2017 and 2018. Enter decreases as negative amounts/percents. G. Mauck Inc. Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease 2018 2017 Amount Percent Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Other current assets Total current assets Long-term investments Plant assets Less: accumulated depreciation Total plant assets Total assets Cash Flows Horiz Analysis |Horiz Analysis :Vertic Analysis: Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. G. Mauck Inc. Partial Income Statement (Vertical analysis) For the years ended December 31, 2018 and 2017 2018 % 2017 Sales $ 466,000 Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses Total operating expenses Operating income Cash Flows Horiz Analysis |Horiz Analysis |Vertic Analysis Vertic Analysis from Oper Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare a vertical analysis on the partial balance sheet for 2017 and 2018. G. Mauck Inc. Partial Balance Sheet (Vertical analysis) For the years ended December 31, 2018 and 2017 Liabilities 2018 % 2017 % Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Notes payable 269,000 200,000 Total liabilities Stockholders' Equity Common stock, $5 par Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Current ratio Acid-test ratio Inventory turnover Days' sales in inventory Accounts receivable turnover Days' sales in receivables Total asset turnover Debt-to-equity ratio Profit margin Return on total assets