MixMax Company MixMax Company MixMax Company Comparative Balance Sheets Cash Flow Statement Income Statement Second Quarter (Q2) Month ending February 28 4/1/2001 6/30/2001 Change 2nd Quarter Assets Revenues Cash from Operating Activities $12,603 Sales Revenue $209,00 Cash $ 18,400 $44,000 25,600 Bad Debt Expense (7,080) Accounts Receivable 24,000 63,000 39,000 Cash from Investing Activities: Allowance for Doubtful Accounts 0 (5,600) (5,600) Total Revenue $201,920 Inventory 5,000 14,000 9,000 Sale of Property, Plant & Equipment 16,000 Prepaid Rent 1,500 (1,500) Total Investing Events 16,000 Expenses Property, Plant & Equipment 45,000 27,000 (18,000) Accumulated Depreciation (2,025) (2,430) (405 Cash from Financing Events Cost of Goods Sold $97,000 Operating Expenses 32,257 Total Assets $91,875 $139,970 $48,095 Repayment of Loan (1,703) Interest Expense 1,283 Payment of Dividends (1,300) Loss on Sale of Property, Plant & Equipment 380 Total Financing Events (3,003) Tax Expense 28,400 Liabilities & Shareowners' Equity Increase in Cash $25,600 Total Expenses $159,320 (159,32 Accounts Payable Merchandise 9,000 14,500 5,500 Accounts Payable Services 4,943 7,760 2,817 Net Income $42,60 Interest Payable 439 422 (17) Current Portion - Long Term Debt 5,266 3,563 (1,703) Deferred Taxes 0 198 198 Long Term Debt 38,627 38,627 Required: Common Stock 13,000 13,000 Retained Earnings 20.600 61,900 41,300 1 Complete the T-account spreadsheet provided - either in the worksheet or by hand. 2 Answer the following Thought Queston: Total Liabilities & Shareowners' Equity $91,875 $139,970 $48,095 Explain the difference between Net Income and Cash Flows from Operating Events