5. Given the following financial information for Hood Sailing Inc. (25 points)

2014 2015 Accounts Payable $18,766 $17,868

Accounts Receivable 6,626 7,184

Cash 15,719 17,486

Common Stock 2,626 10,508

Cost of Goods Sold 14,768 14,954

Depreciation 2,000 2,000

Dividends 5,244 5,236

Interest Expense 915 980

Inventory 5,571 6,226

Long-Term Debt 16,000 ?

Net Property, Plant & Equipment 13,136 14,973

Retained Earnings ? ?

R&D Expense 7,180 7,503

Sales 42,237 44,033

SG&A Expense 11,606 11,911

Tax Rate = 35% 12A. Construct Income Statements for 2014 and 2015. 2014 2015

12B. What is the addition to Retained Earnings in 2015?

2014 2015 Accounts Payable $18,766 $17,868

Accounts Receivable 6,626 7,184

Cash 15,719 17,486

Common Stock 2,626 10,508

Cost of Goods Sold 14,768 14,954

Depreciation 2,000 2,000

Dividends 5,244 5,236

Interest Expense 915 980

Inventory 5,571 6,226

Long-Term Debt 16,000 ?

Net Property, Plant & Equipment 13,136 14,973

Retained Earnings ? ?

R&D Expense 7,180 7,503

Sales 42,237 44,033

SG&A Expense 11,606 11,911

12C. Construct Balance Sheets for 2014 and 2015. Assets Liabilities and Owners Equity

2014 2015 2014 2015

12D. Construct a Statement of Cash Flow for 2015. Use the components of Operating Activities, Investing Activities, and Financing Activities.