1. 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):

1. DME Developer and Seller
2. Bank
3. Distributor
4. Hospital
5. Branded Pharmaceutical

5J. Describe the evaluation you performed to determine your answer in 5I (5 points).