Group Problem Set 1: This problem Set is based on materials covered in module 1/week 1. It is designed for you to demonstrate your understanding of basic financial statements, financial statement analysis, break-even concepts, financial and operating leverages. Before you start this assignment, please review weeks 1 and 2 materials thoroughly.

Finance date of Adams Stores, Inc. for the year ending 2016 and 2017.

Part 1: Financial Statements

A. Prepare the income statement for 2016 and 2017. Include statement of retained earnings for 2017

B. Prepare the balance sheet for 2016 and 2017

C. Prepare Common-Size financial statements of income statement and balance sheet.

D. Prepare Statement of Cash Flows

Items 2016 2017 Sales $3,432,000 9,000 340,000 203,768 323,432 2,864,000 18,900 48,600 491,000 62,500 $5,834,400 7,282 720,000 97,632 1,000,000 4,980,000 116,960 20,000 1,202,950 176,000 Cash Other Expenses Retained Earnings Long-term debt Cost of goods sold Depreciation Short-term investments Fixed Assets Interest Expenses Shares outstanding (par value $46.00) 100,000 100,000 Market Price of stock 8.50 6 Accounts Receivable 351,200 145,600 715,200 200,000 146,200 136,000 40% 632,160 324,000 1,287,360 720,000 263,160 284,960 40% Accounts payable Inventory Notes Payable Accumulated Depreciation Accruals Tax Rate