Question
James Baker Corporation provided the following Statements for 2019-20 Balance Sheet 2020 2019 Assets $ $ Cash 40,000 70,000 Accounts Receivable 320,000 350,000 Inventory 460,000
James Baker Corporation provided the following Statements for 2019-20
Balance Sheet 2020 2019
Assets $ $
Cash 40,000 70,000
Accounts Receivable 320,000 350,000
Inventory 460,000 320,000
Total Current Asset 820,000 740,000
Gross Fixed Assets 560,000 520,000
Accumulated Depreciation 180,000 150,000
Net Fixed Asset 380,000 370,000
Total Asset 1,200,000 1,110,000
Liabilities & Stockholders Equity
Current Liabilities
Accounts Payable 390,000 320,000
Notes Payable 110,000 90,000
Accrued Expense 20,000 20,000
Total Current Liabilities 520,000 430,000
Debenture 320,000 350,000
Total Liabilities 840,000 780,000
Stockholders Equity
Common Stock at par 100,000 100,000
Share Premium Reserve 150,000 150,000
Retained Earnings 110,000 80,000
Total Liabilities & Stockholders Equity 1,200,000 1,110,000
Income Statement 2020
$
Sales 2,200,000
Cogs 1,420,000
Gross Profit 780,000
Operating Expenses 600,000
Operating Income (EBIT) 180,000
Interest 29,000
Earnings before Tax (EBT) 151,000
Tax (30%) 45,000
Earnings after Tax (Net Income) 106,000
Dividend for Preferred Stockholders 6,000
Earnings for Common Stockholders 100,000
Dividend for Common Stockholders 25,000
Retained Earnings 75,000
Required
- Prepare Cash from Operations using the direct method for the year 2020
B. Calculate FCFF and FCFE. For 2020
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