n the month of March the Baldwin Corporation received and delivered orders of 143,000 units at a price of $15.00 for revenue of $2.145mil for their product Buddy. Baldwin uses the accrual method of accounting and offers 30 day credit terms. By the end of May Baldwin had collected payments of $2.145mil for the March deliveries. How much of the collected $2.145mil should Baldwin show on the March 31st income statement and how much on the May 31st income statement?

Select: 1

	$0 in March; $2.145mil in May
	$1.073mil in March; $1.073mil in May
	$2.145mil in March; $0 in May
	$0.708mil in March; $1.437mil in May

Balance Sheet SETS DEFINITIONS: Common Size: The commo size column simply represents each item as a percentage of total assets for th at year. Cash $36,527 Cash our end-of-year cash position. Accounts $11,990 counts Receivable Receivable: Reflects the lag between delivery $11,822 inventory and payment of your products. Inventories: The nt value of you nventory across a Curre $60,339 Total Current Assets products. A zero indicates your company stocked out, Unmet demand would, of course Plant & Equipment $236,400 all to your competitors. Plant & Equipment $108,836 The current value of your plant. Accum Deprec: cumulated Depreciation e total accumulated depreciation from your $127,564 plant. Accts Payable: What the company otal Fixed Assets currently owes suppliers for materials and services. Current Debt: The debt the company otal Assets $187,903 s obligated to pay during the next year of operations It includes emergency loans used to LIABILITIES & OWNERS' keep your company solvent should you run ou EQUITY of cash during the year. Long Term Debt: Th company's long term debt is in the form of $5,364 Accounts Payable bonds, and this represents the total value of Current Debt $25,83 your bonds. Common Stock: The amount of Long Term Debt $79,224 capital invested by shareholders in t he company. Retained Earnings: The profits that the otal Liabilities $110,419 company chose to keep instead of paying to shareholders as dividends $44,146 Common Stock Retained Earnings $33,338 $77,484 Total Equity Total Liab. & O. Equity 187,903 Cash Flow Statement Cash Flows from operating Activities he Cash Flow Statement examines what happened in the Cas unt during the year Cash injections appear as positive numbers and Net Income (Loss Depreciation h withdrawals as negative numbers. The Cash Flow Statement is an cas Extraordinary gains/losses/writeoffs cellent tool for diagnosing emergency loans. When negative cash Accounts Payable ows exceed positives, you are forced to seek emergency funding. Fo example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a Accounts Receivable huge negative cash flow. Too much unexpected inventory could outstrip our inflows, exhaust your starting cash and force you to beg for money Net cas h from operations Cash Flows from investing Activities: to keep your company aflo Plant Improvements Cash Flows from Financing Activities: Cash Flow Summary Dividends Paid Baldwin Sales of Common Stock Purchase of Common Stoc Cash from long term deb 30,000 Retirement of long term debt 20,000 Change in current debt (net) 10.000 Net cash from financing activities Net change in cash position Closing cash position 10,000 20,000 Operations Finance Chg. Cash O Operations nvestment O Finance O Chg. Cash nnual Report 2019 2018 Common Size $20,157 19.4% $11,34 6.4% 6.3% $30,225 $61,723 32.1% 125.8%. $236,400 ($93,076 -57.9% $143,324 67.9% 100.0% $205,047 $9,150 2.9% 13.7% $29,396 $86,766 42.2% 58.8%. $125,312 $44,146 23.5% $35,590 $79,736 41.2% $205,047 100.0% 2019 2018 $6,697 $1,68 $15,760 $15,760 $552 $0 $3,785 $396 $18,402 ($24,523 $648 $1,162 $35,874 $8,886 $0 ($23,200) $8,949 $0 $9,250 $0 $0 $0 $4,856 $6,991 $0 $3,565) $12,411 $19,505 $1,695 $16,369 ($30,39 $36,527 $20,157 Page 1