Income Statement: 2004-2006 and 2007, assuming that Jones will take the trade discounts Balance Sheet: 2004-2006 amd 2007, assuming that Jones will take the trade discounts Statement of Cash Flows: 2004-2006 amd 2007, assuming that Jones will take the trade discounts Predicted 2007 Predicted 2007 Predicted 2007 2004 Net sales Cost of goods sold $1,624 2005 $1,916 2006 $2,242 Take Discounts $2,700 Skip Discounts $2,700 2004 2005 2006 Take Discounts Skip Discounts 2005 2006 Take Discounts Skip Discounts Cash $45 $53 $23 $23 $23 $1,304 $1,535 $1,818 $2,190 $2,244 Accounts receivable $187 $231 $264 $318 $318 Net Income $29 $30 $40 Gross profit on sales $320 $381 $424 $510 $456 Inventory $243 $278 $379 $456 $467 Depreciation $25 $35 $35 $5 $35 Total current assets $475 $562 $666 $797 $808 Inventory Operating expense b ($35) ($101) ($77) $272 $307 $347 $417 ($11) $417 Accounts receivable Interest expense ($44) ($33) ($54) $0 $27 $30 $31 $31 $31 Property & equipment $187 $202 $252 $287 $322 Trade credit (Accounts payable) $6 $78 Net income before taxes $21 $44 $46 $62 ($60) $124 $8 Accumulated depreciation ($74) ($99) ($134) ($169) ($204) Accrued expenses $1 $1 $0 $0 Total PP&E, net $113 $103 $118 $118 $118 Cash flows from operations ($18) $9 Provision for income tax ($116) $153 $7 $15 $16 $22 $3 Net income $14 $29 $30 $40 $5 Total assets $588 $665 $784 $915 $926 Capital expenditures ($15) ($50) ($35) ($35) Cash flows from investing activities ($15) ($50) ($35) ($35) Accounts payable $36 $42 $120 $60 $184 Line of credit payable $149 $214 $249 $424 $346 Payment of line of credit ($149) ($214) ($249) ($424) Accrued expenses $13 $14 $14 $14 $14 Bank Borrowing (Line of credit payable) F $214 $249 $424 $346 Long term debt, current portion $24 $24 $24 $24 $24 Current liabilities $222 $294 $407 $522 $569 Payment of the current portion of long-term debt Cash flow from financing activities ($24) ($24) ($24) ($24) $41 $11 $151 ($102) Long-term debt $182 $158 $134 $110 $110 Increase (decrease) in cash $8 ($30) $0 $16 Total liabilities $404 $452 $541 $632 $679 Net worth $184 $213 $243 $283 $288 Total liabilities and net worth $588 $665 $784 $915 $966