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Hi Please help me solve this question and tell me the formulathat we need to use Question # 4 ( 25 marks) The income statement,
Hi
Please help me solve this question and tell me the formulathat we need to use
Question # 4 ( 25 marks) The income statement, comparative balance sheet, and additional information for LACONIC Corporation for 2015 appear below: Income Statement Revenues: Sales Gain on sale of equipment Expenses: CGS Salary and wages expense Depreciation Other operating expenses Operating income (EBIT) Interest expense on bonds Income before tax Income tax $23,598 205 $23,803 11,456 4,123 1,052 3,577 20,208 3,595 246 3,349 1,139 Net income $ 2,210 Comparative Balance Sheet Cash A/R Inv Prepaid expenses 2015 2014 $ 1,011$ 1,163 1,012 957 3,984 3,277 155 178 Land Buildings Equipment Accumulated depreciation Totals 510 3,680 8,798 (3,443) $15,707 510 3,680 8,555 (2,891) $15,429 A/P Salary and Wages payable Interest payable Income tax payable Other accrued liabilities $ 3,588 85 62 55 1,126 $ 3,325 75 74 50 1,104 3,075 3,750 3,966 $15,707 3,575 4,350 2,876 $15,429 Long-term debt Common stock R/E Totals Other data: During 2015, LACONIC purchased new equipment for a total of $1,300. No items affected retained earnings other than net income and dividends Required: 1. Prepare CFS using the INDIRECT methods. (10 marks) 2. Prepare CFS using the Direct method. (5 marks) 3. Compute (10 marks) FCF NOPAT NOA
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