Help needed with the following attached homework assignment. Financial Ratio Analysis. Thank you. Attached are the supporting documents, topic 3 is required to complete the task.

Instructions: Complete the each of following seven tabs in this MS Excel Workbook using the information contained in them: - Post the Journal Entries (to record the transactions of FirstRate Company during the final week of its fiscal year ended [FYE] Dec. 31, 20X5) to the consolidated Trial Balance of the company as of December 31, 20X5 - Consolidated Balance Sheet of the company as of December 31, 20X5 - Consolidated Income Statement, including comprehensive income, of the company for its FYE December 31, 20X5 - Statement of Cash Flows (SCF) Support Schedule, which provides information useful for preparing the SCF - Consolidated Statement of Cash Flows (SCF) of the company for its FYE December 31, 20X5 - Consolidated Statement of Changes in Shareholders' Equity of the company for its FYE December 31, 20X5 Complete the assignment by working "from left to right." That is, first, complete the Trial Balance, followed by the Balance Sheet, then the Income Statemet tab, etc. The background paper, Financial Statement Concepts and Financial Reporting, provides useful guidance for completing th The facilitator will grade this assignment, assigning up to 100 points for it as follows: Maximum Earned - Trial Balance 15 - Balance sheet 20 - Income Statement 20 - Cash Flow Statement (SCF) and SCF Support Schedule 30 - Statement of Changes in Stockholders' Equity 15 15 20 19 30 15 99 Total points 100 book using the information contained in them: Rate Company during the final week of its fiscal year ended [FYE] mpany as of December 31, 20X5 er 31, 20X5 e income, of the company for its FYE December 31, 20X5 provides information useful for preparing the SCF any for its FYE December 31, 20X5 uity of the company for its FYE December 31, 20X5 irst, complete the Trial Balance, followed by the Balance Sheet, then the s and Financial Reporting, provides useful guidance for completing this assignment. points FirstRate Company and subsidiaries General Journal (U.S. dollars in thousands) (Assumes company does NOT use special journals, such as sales journal, purchases journal, cash journal, or payroll journal) Date General ledger accounts / Explanation Debit Credit Dec. 31, 20X5 Dr. Accounts receivable, gross Cr. 800 Sales revenue (gross) 800 Explanation: To record credit sales for the last few days of 20X5 Dec. 31, 20X5 Dr. Cost of goods sold (COGS) - other Cr. 600 Inventory, at lower of cost or market 600 Explanation: To record cost of sales for the last few days of 20X5 Dec. 31, 20X5 Dr. Cash and cash equivalents Cr. 700 Accounts receivable, gross 700 Explanation: To record collections of accounts receivables for the last week of 20X5 Dec. 31, 20X5 Dr. Allowance for uncollectible accounts receivable Cr. 200 Accounts receivable, gross 200 Explanation: To record write-off of AR outstanding more than 6 months as of Dec. 28, 20X5 Dec. 31, 20X5 Dr. Selling and administrative expenses - other Cr. 200 Cash and cash equivalents 200 Explanation: To record payment of employee 20X5 bonuses, declared by board on Dec. 28, 20X5 Dec. 31, 20X5 Dr. Inventory, at lower of cost or market Cr. 500 Accounts payable 500 Explanation: To record purchases of raw materials during last week of 20X5 on credit (terms net 30 days) Total debits and credits 3,000 3,000 FirstRate Company and subsidiaries T ( e n Trial Balance Fiscal Year 20X5 (U.S. dollars in thousands) FYE Dec. 31, 20X4 FYTD Dec. 24, 20X5 Debit 2,100 600 Investment securities available for sale (market value) Debit 20,200 21,700 78,000 94,600 General ledger (GL) account Cash and cash equivalents JEs Final Week of 20X5 Debits (Credits) 700 (200) FYE Dec. 31, 20X5 1,100 21,700 800 (700) Accounts receivable, gross Debit Allowance for uncollectible accounts receivable Credit (2,700) (3,800) 200 Inventory, at lower of cost or market Debit 137,600 160,100 500 Property, plant, and equipment, at cost Debit 292,500 266,700 266,700 Accumulated depreciation on PP&E Credit (129,700) (105,200) (105,200) Accounts payable Credit (81,600) (96,700) Accrued income taxes payable Credit (2,300) (1,800) (1,800) Dividends payable on common stock Credit (19,800) (16,000) (16,000) Bank note payable - current portion Credit (89,800) (113,900) (113,900) Bank note payable - noncurrent portion Credit (52,700) (55,400) (55,400) Accrued interest payable Credit (2,500) (3,100) (3,100) 6% Preferred stock, at par value Credit (20,000) (20,000) (20,000) Common stock, at par value Credit (42,700) (42,700) (42,700) Additional paid-in capital (APIC) Credit (8,300) (8,300) (8,300) Treasury stock Debit 1,100 1,100 1,100 (200) 94,500 (3,600) (600) (500) 160,000 (97,200) Accum. other comprehensive income (loss) Dr (Cr) 200 (1,300) (1,300) Retained earnings - beginning of year Credit (82,500) (79,600) (79,600) Dividends declared on preferred stock - current year Debit 1,200 1,200 1,200 Dividends declared on common stock - current year Debit 19,800 16,000 16,000 Sales revenue (gross) Credit (674,200) (742,300) Sales returns and allowances Debit 12,800 16,300 16,300 Cost of goods sold (COGS) - depreciation Debit 11,400 10,000 10,000 Cost of goods sold (COGS) - other Debit 469,400 523,600 Selling and administrative expenses - depreciation Debit 600 500 Selling and administrative expenses - other Debit 109,200 122,900 Research and development (R&D) expenses Debit 23,800 24,000 24,000 Other operating expenses Debit 9,900 12,300 12,300 Gain on disposal of PP&E Credit - (1,100) (1,100) Loss on disposal of PP&E Debit - - - Interest on bank note Debit 9,900 12,500 12,500 Income tax provision Debit 9,100 7,100 7,100 Loss from discontinued oper., (before tax effect) Debit - - - Extraordinary loss (before tax effect) Debit - - - - - 3,000 (3,000) (18,100) (14,200) 800 (800) Total debits (credits) Net balance of nominal (or, temporary) accounts (800) 600 (743,100) 524,200 500 200 123,100 - FirstRate Company and subsidiaries 17F8W2 Consolidated Income Statement Fiscal year ended December 31, 20X5 (U.S. dollars in thousands, except per share amounts) Sales revenue (net of returns and allowances) $ 726,800 Cost of goods (or services) sold 534,200 Gross Profit 192,600 Operating expenses: Selling and administrative expenses - depreciation 500 Selling and administrative expenses - other 123,100 Other operating expenses 36,300 Total operating expenses 159,900 Operating income 32,700 Non-operating items: Non-operating revenues and gains: Gain on disposal of PP&E 1,100 Non-operating expense and losses: Interest on bank note 12,500 Income before income taxes 21,300 Income tax provision Net income 7,100 $ 14,200 $ 0.33 Earnings per share: Net income Weighted average number of common shares outstan ### Comprehensive income: Net income $ 14,200 Other comprehensive income: Accum. other comprehensive income (loss) Comprehensive income 1,500 $ 12,700 FirstRate Company and subsidiaries 17F8W2 Consolidated Balance Sheet December 31, 20X5 (U.S. dollars in thousands) Assets: Current assets: Cash and cash equivalents $ 1,100 Investment securities available for sale (market value) 21,700 Accounts receivable, gross 94,500 Allowance for uncollectible accounts receivable (3,600) Inventory, at lower of cost or market 160,000 Total current assets 273,700 Property, plant, and equipment, at cost 266,700 Accumulated depreciation on PP&E (105,200) Property, plant, and equipment, net 161,500 Total assets $ 435,200 Liabilities: Current liabilities: Accounts payable Accrued income taxes payable Dividends payable on common stock Bank note payable - current portion Accrued interest payable Total current liabilities Bank note payable - noncurrent portion Total liabilities $ 97,200 1,800 16,000 113,900 3,100 232,000 55,400 287,400 Stockholders' equity: 6% Preferred stock, at par value 20,000 Common stock, at par value 42,700 Additional paid-in capital (APIC) Treasury stock Accum. other comprehensive income (loss) Retained earnings - beginning of year Total stockholders' equity Total liabilities and stockholders' equity 8,300 (1,100) 1,300 76,600 147,800 $ 435,200 FirstRate Company and subsidiaries Consolidated SCF Support Schedules (NOT for inclusion in U.S. GAAP-GPFS) Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) December 31, Working capital assets: Accounts receivable, net of allowance 20X5 $ Inventory, at lower of cost or market 90,900 20X4 $ 75,300 Increase (decrease) $ 15,600 Use of cash 160,000 137,600 22,400 Use of cash 15,600 Source of cash Working capital liabilities: Accounts payable 97,200 81,600 Accrued income taxes payable 1,800 2,300 Accrued interest payable 3,100 2,500 Net working capital $ 148,800 $ 126,500 (500) Use of cash 600 $ 22,300 Source of cash Net use of cash Non-working capital asset accounts Property, plant, and equipment (PP&E), at cost Balance at beginning of period, reported in December 31, 20X4 balance sheet $ Increase: Acquisitions of PP&E during 20X5 292,500 9,200 Decrease: Original cost of equipment sold in 20X5 (fully depreciated at date of disposal) (35,000) Balance at end of period, reported in December 31, 20X5 balance sheet $ 266,700 $ 129,700 Accumulated depreciation (of PP&E) Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Depreciation of PP&E for 20X5 10,500 Decrease: Accumulated depreciation on equipment sold in 20X5 (35,000) Balance at end of period, reported in December 31, 20X5 balance sheet $ 105,200 $ 19,800 Non-working capital liability accounts Dividends payable on common stock Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Dividends declared on common stock on December 15, 20X5 16,000 Decrease: Dividends paid during FYE December 31, 20X5 (19,800) Balance at end of period, reported in December 31, 20X5 balance sheet Bank note payable Balance at beg. of period, reported in Dec. 31, 20X4 balance sheet $ Current portion 89,800 Non-current portion 52,700 Increase: Additional borrowings during 20X5 ("plugged" from remaining info) Total 142,500 26,800 Decrease: None (FirstRate made no repayments during 20X5) Balance at end of period, reported in Dec. 31, 20X5 balance sheet 16,000 113,900 55,400 169,300 Stockholders' equity accounts Preferred stock, par value $100 per share Balance at beginning of period, reported in December 31, 20X4 balance sheet 20,000 Increase: None - Decrease: None - Balance at end of period, reported in December 31, 20X5 balance sheet 20,000 Common stock, par value $1 per share Balance at beginning of period, reported in December 31, 20X4 balance sheet 42,700 Increase: NO shares issued in 20X5, at par value - Decrease: NA - see Treasury Stock, below - Balance at end of period, reported in December 31, 20X5 balance sheet 42,700 Additional paid-in capital (APIC) Balance at beginning of period, reported in December 31, 20X4 balance sheet 8,300 Increase: NO shares issued in 20X5 - Decrease: None (not applicable) - Balance at end of period, reported in December 31, 20X5 balance sheet 8,300 Treasury stock Balance at beginning of period, reported in December 31, 20X4 balance sheet 1,100 Increase: NO shares repurchased in 20X5 - Decrease: None (NO treasury shares re-sold in 20X5) - Balance at end of period, reported in December 31, 20X5 balance sheet 1,100 Retained earnings Balance at beginning of period, reported in December 31, 20X4 balance sheet 79,600 Increase: Net income for FYE December 31, 20X5, as reported in the income statement 14,200 Decrease: Preferred dividends declared (and paid) in 20X5 (1,200) Decrease: Common stock dividends declared (refer to analysis of dividends payable, above) Balance at end of period, reported in December 31, 20X5 balance sheet (16,000) 76,600 Determination of Supplemental Disclosures of Interest and Income Taxes Paid Accrued interest payable Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Interest on bank note, as reported in the income statement Decrease: Interest paid during 20X5 (inferred, or "plugged," from remaining info) Balance at end of period, reported in December 31, 20X5 balance sheet 2,500 12,500 (11,900) 3,100 Accrued income taxes payable Balance at beginning of period, reported in December 31, 20X4 balance sheet 2,300 Increase: Income tax provision (i.e., income tax expense) reported in the income statement: 7,100 Decrease: Income taxes paid during 20X5 (inferred, or "plugged," from remaining info) Balance at end of period, reported in December 31, 20X5 balance sheet (7,600) 1,800 FirstRate Company and subsidiaries Consolidated Statement of Cash Flows Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) Net income $ 14,200 Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation of property, plant, and equipment 10,500 Gain on disposal of equipment (1,100) Loss on sale of equipment - Changes in working capital accounts: Decrease (increase) in accounts receivable, net (15,600) Decrease (increase) in inventory (22,400) Increase (decrease) in accounts payable 15,600 Increase (decrease) in accrued income taxes payable (500) Increase (decrease) in accrued interest payable 600 Net cash provided by (used in) operating activities 1,300 Cash flows from investing activities: Proceeds on sale of equipment 1,100 Acquisitions of property, plant, and equipment (9,200) Net cash provided by (used in) investing activities (8,100) Cash flows from financing activities: Net proceeds from issuance of common stock - Repurchases of common stock - Redemption of preferred stock - Payment of dividends on preferred stock (1,200) Payment of dividends on common stock (19,800) Proceeds from borrowings under bank note agreement 26,800 Net cash provided by (used in) financing activities 5,800 Net increase (decrease) in cash and cash equivalents (1,000) Cash and cash equivalents, January 1, 20X5 Cash and cash equivalents, December 31, 20X5 2,100 $ 1,100 $ 11,900 Supplemental disclosures: Cash paid in 20X5 for interest Cash paid in 20X5 for income taxes 7,600 FirstRate Company and subsidiaries Statement of Changes in Stockholders' Equity Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) 17S8W2 Balance at January 1, 20X5 Preferred stock Common stock Additiona l paid-in capital Accum. other Total comprehe stockhold Treasury nsive Retained ers' stock income earnings equity $ $ $ $ 20,000 Preferred stock redeemed 42,700 8,300 (1,100) $ (200) $ 79,600 - - Common stock issued - - - Common stock repurchased - - Net income 14,200 Other comprehensive income (loss) 1,500 17F8W2 Balance at December 31, 20X5 $ 20,000 $ 42,700 $ 8,300 $ (1,100) $ 1,300 14,200 1,500 Dividends on common stock Dividends on preferred stock $ 149,300 $ (16,000) (16,000) (1,200) (1,200) 76,600 $ 147,800 Instructions: 17S8W2 Complete the financial ratio analysis in the next tab of this workbook using the information contained in it and the remaining five tabs. To complete the financial ratio analysis, use the background information and consolidated financial statements of FirstRate for its FYs 20X0 - 20X4 (contained in the remaining tabs in this workbook) and the FY 20X5 balance sheet and income statements of the company that you completed in Topic 3 of the course. In each shaded row of cells, provide the information indicated for use in computing each ratio or the correct formula to compute the ratio, as appropriate. For each ratio, comment briefly on the meaning of the observed trend, such as its likely implications for FirstRate's business and finances, and relationship of the trends in each ratio to trends in other ratios. The background paper, Financial Ratio Analysis, provides useful guidance for completing this assignment. The facilitator will grade this assignment, assigning up to 100 points for it as follows: Maximum - Accuracy of information (financial data input) used to compute ratios 20 - Accuracy and formatting of computed ratios (formula results) 30 Earned 20 points 30 - Quality and clarity of analysis of trends in computed ratios, including implications for business and financial outlook, and relationship of different ratios' trends to each other Total points 50 100 50 100 FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 17F8W2 20X0 20X1 20X2 20X3 20X5 Analysis of trend, relationship to other ratios' trends 20X4 LIQUIDITY Current (working capital) ratio 1.4 Total current assets 163,400 Total current liabilities 116,700 Acid-test (quick) ratio Cash and cash equivalents For each ratio, comment briefly here on the meaning of the observed trend, such as its likely implications for FirstRate's business and finances, and relationship of the trends in this ratio to trends in other ratios. Your comments must fit within the space provided, without widening columns, increasing row heights, or other format changes. 0.7 14,300 Investment securities available for sale (market value) Accounts receivable, net of allowance Total cash, cash equivalents, invest. sec. and AR Total current liabilities Average collection period (days) (see also turnover ratio) 14,300 - 116,700 NA 29 NA #DIV/0! Accounts receivable, net of allowance Average accounts receivable, net of allowance Sales revenue, net of returns and allowances Average daily sales (assume 360-day year) Average days to sell inventory (see also turnover ratio) NA 88 NA #DIV/0! Inventory, at lower of cost or market (LOCOM) Average inventory, at LOCOM Total cost of goods sold (COGS) Average daily COGS (assume 360-day year) - - - - - To an in fin F 20 re w ba st th of ro in in co th N an pr co an FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 17F8W2 20X0 20X1 20X2 20X3 20X5 Analysis of trend, relationship to other ratios' trends 20X4 CAPITAL STRUCTURE AND SOLVENCY Total debt-to-equity (total debt) ratio 1.1 Total (current and noncurrent) liabilities Total stockholders' equity Times interest earned (interest coverage) ratio 9.1 Income before income taxes Interest expense Income before income taxes and interest expense (EBIT) - - RETURN ON INVESTMENT Return on assets (ROA) Ratio NA 10.1% Net income Interest expense Income tax provision Effective income tax rate #DIV/0! Total assets Average total assets NA #DIV/0! Return on total common stockholders' equity (ROCE) rati NA 20.1% NA #DIV/0! Net income Dividends on preferred stock Total common stockholders' equity Average total common stockholders' equity - - - - FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 17F8W2 20X0 OPERATING PERFORMANCE Gross margin 30.0% Sales revenue, net of returns and allowances Total cost of goods sold (COGS) Selling and administrative expense-to-sales ratio 15.0% Selling and administrative expenses Sales revenue, net of returns and allowances R&D expense-to-sales ratio 5.0% R&D expenses Sales revenue, net of returns and allowances Other operating expense-to-sales ratio 1.0% Other operating expenses Sales revenue, net of returns and allowances Operating margin 9.0% Operating income Sales revenue, net of returns and allowances Pre-tax operating margin 8.0% Income before income taxes Sales revenue, net of returns and allowances Net margin Net income Sales revenue, net of returns and allowances 5.3% 20X1 20X2 20X3 20X4 20X5 Analysis of trend, relationship to other ratios' trends FirstRate Company and subsidiaries Financial Ratio Analysis 20X0 - 20X5 (U.S. dollars in thousands, except per-share amounts) Fiscal year ended December 31, 17F8W2 20X0 20X1 20X2 20X3 20X5 Analysis of trend, relationship to other ratios' trends 20X4 ASSET UTILIZATION Accounts receivable turnover NA 12.3 Average accounts receivable, net NA #DIV/0! Inventory turnover NA 4.1 NA #DIV/0! Sales revenue, net of returns and allowances Accounts receivable, net of allowance Total cost of goods sold (COGS) Inventory, at lower of cost or market (LOCOM) Average inventory, at LOCOM STOCK PERFORMANCE Price-earnings (P-E) ratio Market price per share 14.8 $ 8.75 $ 8.00 $ 7.50 $ 6.50 $ 5.00 $ 3.50 Net income Dividends declared on preferred stock - current year Net income available to common stock - Common stock, at $1 par value Average common stock at par $1 share 42,500 #DIV/0! ### ### Average number of shares of common stock outst Earnings per share $ Price-book (P-B) ratio Market price per share of common stock ### ### ### ### 3.4 $ 8.75 $ 8.00 $ 7.50 $ 6.50 $ 5.00 $ 3.50 Total common stockholders' equity Number of shares of common stock outstanding a Book value per common share of stock ### $ - ### ### ### ### ### FirstRate Company and subsidiaries Consolidated Income Statement Fiscal years ended December 31, 20X0 - 20X4 (U.S. dollars in thousands, except per share amounts) 20X0 20X1 20X2 20X3 20X4 $ 495,000 $ 519,700 $ 559,600 $ 606,400 $ 661,400 Cost of goods (or services) sold (COGS) 346,500 363,800 397,900 436,000 480,800 Gross profit 148,500 155,900 161,700 170,400 180,600 Selling and administrative expenses 74,300 78,000 88,400 98,200 109,800 Research and development (R&D) expenses 24,800 26,000 23,500 23,600 23,800 5,000 5,200 6,200 7,900 9,900 104,100 109,200 118,100 129,700 143,500 44,400 46,700 43,600 40,700 37,100 Sales revenue (net of returns and allowances) Operating expenses: Other operating expenses Total operating expenses Operating income Non-operating items: 17F8W1 Non-operating revenues and gains Gain on disposal of equipment - - - - - - 900 - - - 4,900 5,400 6,200 7,700 9,900 Income from continuing operations before income taxes 39,500 40,400 37,400 33,000 27,200 Taxes on income from continuing operations 13,200 13,500 12,500 11,000 9,100 Income from continuing operations 26,300 26,900 24,900 22,000 18,100 - (2,000) - - - 26,300 24,900 24,900 22,000 18,100 - (1,000) - - - Non-operating expense and losses: Loss on disposal of equipment Interest on bank note Income (loss) from discont. oper., net income taxes of $1,000, in 20X1 Income before extraordinary items Extraordinary gain (loss), net of related income taxes of $500, in 20X1 Net income $ 26,300 Earnings per share: Income from continuing operations - $ Income (or loss) from discontinued operations, net of tax benefit Income before extraordinary items Extraordinary gain (or loss), net of tax of tax benefit Net income Weighted average number of common shares outstandi $ $ 0.62 23,900 $ 24,900 - $ 0.63 $ 22,000 - $ 0.59 $ 18,100 - $ 0.52 - $ 0.43 - (0.04) - - - 0.62 0.59 0.59 0.52 0.43 - (0.03) - - - 0.62 ### $ 0.56 ### $ 0.59 ### $ 0.52 ### $ 0.43 ### FirstRate Company and subsidiaries Consolidated Balance Sheet Fiscal years ended December 31, 20X0 - 20X4 (U.S. dollars in thousands) 20X0 20X1 20X2 20X3 20X4 Assets: Current assets: Cash and cash equivalents $ 14,300 $ 9,900 $ 11,600 $ 8,500 $ 2,100 Investment securities available for sale, at market 21,200 20,200 20,200 20,200 20,200 Accounts receivable, net of allowance 41,300 43,300 51,300 62,300 75,300 Inventory, at lower of cost or market 86,600 91,000 105,000 119,900 137,600 163,400 164,400 188,100 210,900 235,200 Total current assets 17F8W1 Property, plant, and equipment, at cost 206,000 209,600 229,600 260,900 292,500 Less: Accumulated depreciation 105,300 94,800 106,000 117,700 129,700 Property, plant, and equipment, net 100,700 114,800 123,600 143,200 162,800 $ 264,100 $ 279,200 $ 311,700 $ 354,100 $ 398,000 $ $ $ $ $ Total assets Liabilities: Current liabilities: Accounts payable Accrued income taxes payable 42,800 45,000 56,100 66,200 81,600 3,300 3,000 3,100 2,700 2,300 Dividends payable on common stock 13,200 12,000 12,500 17,100 19,800 Bank note payable - current portion 56,200 60,500 71,500 80,800 89,800 1,200 1,300 1,500 1,900 2,500 116,700 121,800 144,700 168,700 196,000 18,700 20,100 18,500 33,200 52,700 135,400 141,900 163,200 201,900 248,700 Preferred stock, par value $100 per share 20,000 20,000 20,000 20,000 20,000 Common stock, par value $1 per share 42,700 42,700 42,700 42,700 42,700 8,300 8,300 8,300 8,300 8,300 - (1,100) (1,100) (1,100) (1,100) 800 (200) (200) (200) (200) 56,900 67,600 78,800 82,500 79,600 128,700 137,300 148,500 152,200 149,300 $ 264,100 $ 279,200 $ 311,700 $ 354,100 $ 398,000 Accrued interest payable Total current liabilities Bank note payable - noncurrent portion Total liabilities Stockholders' equity: Additional paid-in capital (APIC) Treasury stock, at cost Accumulated other comprehensive income (AOCI) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity FirstRate Company and subsidiaries Trial Balances Fiscal Years 20X0 - 20X4 (U.S. dollars in thousands) FYE Dec. 31, 20X0 Cash and cash equivalents FYE Dec. 31, 20X1 FYE Dec. 31, 20X2 FYE Dec. 31, 20X3 FYE Dec. 31, 20X4 Debit 14,300 9,900 11,600 8,500 2,100 Investment securities available for sale (market value Debit 21,200 20,200 20,200 20,200 20,200 42,100 44,200 52,600 64,200 78,000 Accounts receivable, gross Debit Allowance for uncollectible accounts receivable Credit Inventory, at lower of cost or market Debit Property, plant, and equipment, at cost Debit Accumulated depreciation on PP&E Credit Accounts payable Accrued income taxes payable 17F8W1 (800) (900) (1,300) (1,900) (2,700) 86,600 91,000 105,000 119,900 137,600 206,000 209,600 229,600 260,900 292,500 (105,300) (94,800) (106,000) (117,700) (129,700) Credit (42,800) (45,000) (56,100) (66,200) (81,600) Credit (3,300) (3,000) (3,100) (2,700) (2,300) Dividends payable on common stock Credit (13,200) (12,000) (12,500) (17,100) (19,800) Bank note payable - current portion Credit (56,200) (60,500) (71,500) (80,800) (89,800) Bank note payable - noncurrent portion Credit (18,700) (20,100) (18,500) (33,200) (52,700) Accrued interest payable Credit (1,200) (1,300) (1,500) (1,900) (2,500) 6% Preferred stock, at par value Credit (20,000) (20,000) (20,000) (20,000) (20,000) Common stock, at par value Credit (42,700) (42,700) (42,700) (42,700) (42,700) Additional paid-in capital (APIC) Credit (8,300) (8,300) (8,300) (8,300) (8,300) Treasury stock Debit - 1,100 1,100 1,100 1,100 Accum. other comprehensive income (loss) Dr (Cr) (800) 200 200 200 200 Retained earnings - beginning of year Credit (45,000) (56,900) (67,600) (78,800) (82,500) Dividends declared on preferred stock - current year Debit 1,200 1,200 1,200 1,200 1,200 Dividends declared on common stock - current year Debit 13,200 12,000 12,500 17,100 19,800 Sales revenue (gross) Credit (500,000) (525,000) (567,000) (616,300) (674,200) Sales returns and allowances Debit 5,000 5,300 7,400 9,900 12,800 Cost of goods sold (COGS) - depreciation Debit 9,800 10,000 10,600 11,100 11,400 Cost of goods sold (COGS) - other Debit 336,700 353,800 387,300 424,900 469,400 Selling and administrative expenses - depreciation Debit 500 500 600 600 600 Selling and administrative expenses - other Debit 73,800 77,500 87,800 97,600 109,200 Research and development (R&D) expenses Debit 24,800 26,000 23,500 23,600 23,800 Other operating expenses Debit 5,000 5,200 6,200 7,900 9,900 Gain on disposal of PP&E Credit - - - - - Loss on disposal of PP&E Debit - 900 - - - Interest on bank note Debit 4,900 5,400 6,200 7,700 9,900 Income tax provision Debit 13,200 12,000 12,500 11,000 9,100 Loss from discontinued oper., (before tax effect) Debit - 3,000 - - - Extraordinary loss (before tax effect) Debit - 1,500 - - - - - - - - (26,300) (23,900) (24,900) (22,000) (18,100) Total debits (credits) Net balance of nominal (temporary) accounts FirstRate Company and subsidiaries Consolidated Statement of Cash Flows Fiscal years ended December 31, 20X1 - 20X4 (U.S. dollars in thousands) 20X1 Net income $ 20X2 23,900 $ 20X3 24,900 $ 20X4 22,000 $ 18,100 Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation of property, plant, and equipment Loss on sale of equipment Changes in working capital accounts: 10,500 11,200 11,700 12,000 900 - - - 17F8W1 Decrease (increase) in accounts receivable, net (2,000) (8,000) (11,000) (13,000) Decrease (increase) in inventory (4,400) (14,000) (14,900) (17,700) 2,200 11,100 10,100 15,400 (300) 100 (400) (400) Increase (decrease) in accrued interest payable 100 200 400 600 Net cash provided by (used in) operating activities 30,900 25,500 17,900 15,000 2,100 - - - Acquisitions of property, plant, and equipment (27,600) (20,000) (31,300) (31,600) Net cash provided by (used in) investing activities (25,500) (20,000) (31,300) (31,600) Repurchases of common stock (1,100) - - - Payment of dividends on preferred stock (1,200) (1,200) (1,200) (1,200) Payment of dividends on common stock (13,200) (12,000) (12,500) (17,100) 5,700 9,400 24,000 28,500 Net cash provided by (used in) financing activities (9,800) (3,800) 10,300 10,200 Net increase (decrease) in cash and cash equivalents (4,400) 1,700 (3,100) (6,400) Cash and cash equivalents, beginning of fiscal year 14,300 9,900 11,600 8,500 Increase (decrease) in accounts payable Increase (decrease) in accrued income taxes payable Cash flows from investing activities: Proceeds on sale of equipment Cash flows from financing activities: Proceeds from borrowings under bank note agreement Cash and cash equivalents, end of fiscal year $ Supplemental disclosures: Cash paid for interest during fiscal year Cash paid for income taxes during fiscal year 9,900 $ - $ 5,300 12,300 11,600 $ - $ 6,000 12,400 8,500 $ - $ 7,300 11,400 2,100 - $ 9,300 9,500