HW1-4 (20 POINTS) Accumulated Depreciation Net Plant & Equipment Total Assets 87.450 349,123 467,507 57,650 339.373 453,591 Using the data presented below: Big Rock Candy Mountain Mining Co. Income Statements For the Years 2019 and 2020 2020 2019 Sales $412,500 $398,600 Cost of Goods 318,786 315,300 Gross Profit 93,714 83,300 Depreciation 29,800 29.652 Selling & Admin. Expense 26,250 24.550 Other Operating Expense 1,210 1,245 Net Operating Income 36,454 27,853 Interest Expense 8,582 8,457 Earnings Before Taxes 27,872 19,396 Taxes 6,968 4,849 Net Income 14,547 Liabilities & Owner's Equity Accounts Payable Accrued Expenses Total Current Liabilities Long-term Debt Total Liabilities Common Stock ($1.00 par) Additional Paid-in-Capital Retained Earnings Total Owner's Equity Total Liab. & Owner's Equity $37,752 $36,819 3,183 3,085 40,935 39,904 170,562 178,581 211,497 218,485 58,664 58,664 136,807 136,807 60,539 39,635 256,010 235,106 467,507 453,591 20,904 a) Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. (Identify and Access Needed Information 4 pts). Notes: Tax Rate Shares Earnings per Share 25.00% 52.100 $0.40 25.00% 52,100 $0.28 Big Rock Candy Mountain Mining Co. Balance Sheet For the Year Ended December 31, 2020 2020 2019 Assets Cash $16,435 $11,596 Marketable Securities 3,656 619 Accounts Receivable 45,896 47,404 Inventory 52,397 54,599 Total Current Assets 118,384 114,218 Gross Fixed Assets 436,573 397,023 b) On another worksheet, create a statement of cash flows for 2020. Do not enter any numbers directly on this worksheet. All formulas should be linked directly to the source on previous worksheets (Identify and Access Needed Information 4 pts). c) Create common size income statement, balance sheet, and statement of cash flows (Analysis 4pts). d) Interpretation: Please describe your process of analyzing the given information, and inter- pret the results from c). Please include your written description in the interpretation tab. If you do not complete this section with your words or leave the interpretation tab as a blank, you receive 0 point in this HW (Use Information Effectively to Accomplish a Specific Pur- pose 4 pts). 1 Please complete the yellow hihlighted parts. Please show the formulas if the number or figures are not provided in the problem. 2 Big Rock Candy Mountain Mining Co. 3 Income Statements 4 For the Years 2019 and 2020 5 2020 2019 6 Sales 7 Cost of Goods 8 Gross Profit 9 Depreciation 10 Selling & Admin. Expense 11 Other Operating Expense 12 Net Operating Income 13 Interest Expense 14 Earnings Before Taxes 15 Taxes 16 Net Income 17 18 Notes: 19 Tax Rate 20 Shares 21 Earnings per Share C D E 2019 A B 1 Big Rock Candy Mountain Mining Co. 2 Balance Sheet 3 For the Year Ended December 31, 2020 4 2020 5 Assets 5 Cash 7 Marketable Securities 3 Accounts Receivable Inventory 0 Total Current Assets 1 Gross Fixed Assets 2 Accumulated Depreciation 3 Net Plant & Equipment 4 Total Assets 5 6 Liabilities & Owner's Equity 7 Accounts Payable 8 Accrued Expenses 9 Total Current Liabilities 0 Long-term Debt 1 Total Liabilities 2 Common Stock ($1.00 par) 3 Additional Paid-in-Capital 4 Retained Earnings 5 Total Owner's Equity 6 Total Liab. & Owner's Equity 7 4 A1 1 2 2 fic ='a-Income Statement'!A2 A B 1 Big Rock Candy Mountain Mining Co. 2 Statement of Cash Flows 3 For the Year Ended December 31, 2020 4 Cash Flows from Operations 5 Net Income 6 Depreciation Expense 7 Change in Marketable Securities 8 Change in Accounts Receivable 9 Change in Inventory 10 Change in Accounts Payable 11 Change in Accrued Expenses 12 Total Cash Flows from Operations 13 Cash Flows from Investing 14 Change in Gross Fixed Assets 15 Total Cash Flows from Investing 16 Cash Flows from Financing 17 Change in Long-term Debt 18 Change in Common Stock ($2 par) 19 Change in Additional Paid-in-Capital 20 Total Cash Flows from Financing 21 Net Change in Cash Balance 22 | | A1 fx ='a-Income Statement'!A2 D E F A B 1 Big Rock Candy Mountain Mining Co. 2 Common-size Income Statements 3 For the Years 2019 and 2020 4 2020 2019 5 Sales 6 Cost of Goods 7 Gross Profit 8 Depreciation 9 Selling & Admin. Expense 10 Lease Expense 11 Net Operating Income 12 Interest Expense 13 Earnings Before Taxes 14 Taxes 15 Net Income 16 17 Notes: 18 Tax Rate 19 Shares 20 21 A1 X fx ='a-Income Statement'!A2 D E 2019 A . 1 Big Rock Candy Mountain Mining Co. 2 Common-size Balance Sheet 3 For the Year Ended December 31, 2020 4 2020 5 Assets 6 Cash 7 Marketable Securities 8 Accounts Receivable 9 Inventory 10 Total Current Assets 11 Gross Fixed Assets 12 Accumulated Depreciation 13 Net Plant & Equipment 14 Total Assets 15 16 Liabilities & Owner's Equity 17 Accounts Payable 18 Accrued Expenses 19 Total Current Liabilities 20 Long-term Debt Total Liabilities 22 Common Stock ($2 par) 23 Additional Paid-in-Capital 24 Retained Earnings 25 Total Owner's Equity 26 Total Liab. & Owner's Equity 27 21 29 A1 X fr ='a-Income Statement'!A2 1 2 D F E Denominator 1 - A B 1 Big Rock Candy Mountain Mining Co. 2 Statement of Cash Flows 3 For the Year Ended December 31, 2020 4 Cash Flows from Operations % of Sales 5 Net Income 6 Depreciation Expense 7 Change in Marketable Securities 8 Change in Accounts Receivable 9 Change in Inventory 10 Change in Accounts Payable 11 Change in Accrued Expenses 12 Total Cash Flows from Operations 13 Cash Flows from Investing 14 Change in Gross Fixed Assets 15 Total Cash Flows from Investing 16 Cash Flows from Financing 17 Change in Long-term Debt Change in Common Stock ($2 par) Change in Additional Paid-in-Capital 20 Total Cash Flows from Financing 21 Net Change in Cash Balance 22 23 24 25 18 19