H. J. Boswell, Inc. Cash flow statements (S millions, except per share data) for the Year Ended December 31, 2016 Ending cash balance for 2015 (beginning cash balance for 2016) $94.50 Operating activities Net income $204.75 Increase in accounts receivable (22.50) Increase in inventory (148.50) No change in other current assets Depreciation expense 135.00 Increase in accounts payable 4.50 No change in accrued expenses 0.00 Cash flow from operating activities S 173.25 Investing activities Purchases of plant and equipment (175.50) Cash flow from investing activities (175.50) Financing activities Decrease in short-term notes (9.00) Increase in long-term debt 51.75 Cash dividends paid to shareholders $(45.00) Cash flow from financing activities (2.25) Increase (decrease) in cash during the year S (4.50) Ending cash balance for 2016 $90.00 3 H. J. Boswell, Inc., Income Statement (5 millions, except per share data for the Year Ended December 31, 2016 Sales $2,700.00 Cost of goods sold (2.025.00) Gross profit $ 675.00 Operating expenses Selling expense $190.00) General and administrative expense (67.50) Depreciation and amortization expense (135.00) Total operating expenses (292.50) Net operating income (EBIT, or earnings before interest and taxes) $382.50 Interest expense (67.50) Earnings before taxes $ 315.00 Income taxes (110.25) Net income $ 204.75 Additional information: Dividends paid to stockholders during 2016 $ 45.00 Number of common shares outstanding 90.00 Earnings per share (EPS) $ 2.28 Dividends per share $0.50 H. J. Boswell, Inc. Cash flow statements (S millions, except per share data) for the Year Ended December 31, 2016 Ending cash balance for 2015 (beginning cash balance for 2016) $94.50 Operating activities Net income $204.75 Increase in accounts receivable (22.50) Increase in inventory (148.50) No change in other current assets Depreciation expense 135.00 Increase in accounts payable 4.50 No change in accrued expenses 0.00 Cash flow from operating activities S 173.25 Investing activities Purchases of plant and equipment (175.50) Cash flow from investing activities (175.50) Financing activities Decrease in short-term notes (9.00) Increase in long-term debt 51.75 Cash dividends paid to shareholders $(45.00) Cash flow from financing activities (2.25) Increase (decrease) in cash during the year S (4.50) Ending cash balance for 2016 $90.00 3 H. J. Boswell, Inc., Income Statement (5 millions, except per share data for the Year Ended December 31, 2016 Sales $2,700.00 Cost of goods sold (2.025.00) Gross profit $ 675.00 Operating expenses Selling expense $190.00) General and administrative expense (67.50) Depreciation and amortization expense (135.00) Total operating expenses (292.50) Net operating income (EBIT, or earnings before interest and taxes) $382.50 Interest expense (67.50) Earnings before taxes $ 315.00 Income taxes (110.25) Net income $ 204.75 Additional information: Dividends paid to stockholders during 2016 $ 45.00 Number of common shares outstanding 90.00 Earnings per share (EPS) $ 2.28 Dividends per share $0.50
