Question
Item As of Dec. 31, 2019 As of Dec 31,2020 cash 20,000 29,000 A/C receivables 30,000 46,000 inventories 60,000 170,000 total current assets 110,000 245,000
Item As of Dec. 31, 2019 As of Dec 31,2020
cash 20,000 29,000
A/C receivables 30,000 46,000
inventories 60,000 170,000
total current assets 110,000 245,000
gross plant and equip. 485,000 430,000
accumulated depreciation 100,000 130,000
net plant and equip. 385,000 300,000
total assets 495,000 545,000
notes payable 26,000 15,000
accounts payable to suppliers 48,000 48,000
accruals 10,000 12,000
total current liabilities 84,000 75,000
long -term debt 200,000 250,000
common stock( 2.50 par value) 36,000 85,000
capital surplus 80,000 90,000
retained earnings 95,000 45,000
total liabilities and equity 495,000 545,000
market price per share 10.00 12.00
income statement jan 1, 2020 - dec 31, 2020
sales 800,000
cost of goods sold 560,000
gross profit 240,000
less general and admin expenses 40,000
less depreciation 30,000
operating income 170,000
less interest expenses 78,000
earnings before taxes (EBT) 92,000
less taxes 30,000
net income 62,000
1. what is the cash flow from operating, financing and investing activities 0f 2020 (second value on the balance sheet)?
2. what is the market value of shareholder's wealth on december 31, 2020?
3. suppose you make 8 equal quarterly deposits of a $2,000 every quarter starting next quarter (at t=1). assume that the stated annual rate of interest is 12.00%, compounded quarterly.
compute how much will you have in your account at the end of 7 years (t=7).
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