Question
Given the following financial information for Costa Corporation. 2020 2019 Accounts Payable $ 9,505 $ 8,544 Accounts Receivable 13,576 14,481 Cash 25,185 19,287 Common Stock
- Given the following financial information for Costa Corporation.
2020 2019 Accounts Payable $ 9,505 $ 8,544
Accounts Receivable 13,576 14,481
Cash 25,185 19,287
Common Stock 30,120 30,120
Cost of Goods Sold 21,027 20,447
Current Portion of Long-term Debt 2,631 1,202
Depreciation Expense 2,600 2,509
Dividend ? ?
Goodwill 39,795 31,282
Interest Expense 264 388
Inventory 9,344 9,020
Long-Term Debt 32,635 26,494
Net Property, Plant & Equipment 19,766 18,615
Research & Development Expense 16,159 15,355 Retained Earnings ? ?
Revenue 82,584 82,059
Selling General & Admin Expense 31,243 30,533
Treasury Stock -38,490 -38,417
Tax Rate = 21%
2018 Retained Earnings = $56,216 5A. Costa acquired one company in 2020. How much did they pay for this company over and above its Book Value (5 points)?
5B. How much stock (in dollar value), did Costa repurchase in 2020 (5 points)?
5C. Construct Income Statements for 2020 and 2019 (12 points). 2020 2019
5D. Construct Balance Sheets for 2020 and 2019 (12 points). Assets Liabilities and Owners Equity
2020 2019 2020 2019
5E. What were Costas Dividends in 2019 and 2020 (6 points)?
5F. Did Costas Leverage increase or decrease in 2020? Calculate 1 ratio which supports your answer (5 points).
5G. Did Costas Liquidity increase or decrease in 2020? Calculate 1 ratio which supports your answer (5 points). 5H. Construct a Statement of Cash Flows for 2020 (15 points).
5I. Costa is most likely a (5 points):
- DME Developer and Seller
- Bank
- Distributor
- Hospital
- Branded Pharmaceutical
5J. Describe the evaluation you performed to determine your answer in 5I (5 points).
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