Problem 3-4 Fitch Inc's financial statements are as follows: Fitch Inc. Balance Sheet For the period...

 

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Problem 3-4 Fitch Inc's financial statements are as follows: Fitch Inc. Balance Sheet For the period ended 12/31/X1 ($000) ASSETS 12/31/X0 12/31/X1 Cash $ 2,135 $ 2,665 Accounts receivable 4,833 5,587 Inventory 3,217 2,843 CURRENT ASSETS $ 10,185 $ 11,095 Fixed assets Gross Accumulated deprec. Net $ 35,183 (22,611) $ 39,456 (24,843) $ 12,572 $ 14,613 TOTAL ASSETS $ 22,757 $ 25,708 LIABILITIES Accounts payable $ Accruals 1,674 482 $ 1,360 1,227 CURRENT LIABILITIES $ 2,156 $ 2,587 Long-term debt Equity $ 1,823 18,778 409 22,712 TOTAL CAPITAL $ 20,601 $ 23,121 TOTAL LIABILITIES AND EQUITY Fitch Inc. Income Statement For the period ended 12/31/X1 ($000) Sales $ 40,643 COGS Gross margin Expense 13,621 $27,022 $ 20,043 EBIT $ 6,979 Interest 180 EBT $ 6,799 Tax $ 22,757 $ 25,708 Net income 2,265 $ 4,534 Fitch also sold stock for $2.5 million and paid dividends of $3.1 million. No fixed assets were retired during the year. (Hint: That implies fixed asset purchases and depreciation are the only changes in gross and accumulated depreciation accounts.) Construct Fitch's statement of cash flows for 20X1. Enter your answers in thousands. For example, an answer of $1.2 million should be entered as 1200, not 1200000. Use a minus sign, to indicate any decreases in cash or cash outflows. FITCH INC. Statement of Cash Flows For the period ended 12/31/X1 ($000) OPERATING ACTIVITIES: Net Income $ Depreciation $ Net changes in current accounts $ Cash from Operating Activities $ INVESTING ACTIVITIES: Increase in Fixed Assets Cash from Investing Activities FINANCING ACTIVITIES: Decrease in Debt Dividends Paid Sale of Stock Cash from Financing Activities NET CASH FLOW Beginning Cash Reconciliation Net Cash Flow Ending Cash $ $ $ $ $ $ $ $ Problem 3-4 Fitch Inc's financial statements are as follows: Fitch Inc. Balance Sheet For the period ended 12/31/X1 ($000) ASSETS 12/31/X0 12/31/X1 Cash $ 2,135 $ 2,665 Accounts receivable 4,833 5,587 Inventory 3,217 2,843 CURRENT ASSETS $ 10,185 $ 11,095 Fixed assets Gross Accumulated deprec. Net $ 35,183 (22,611) $ 39,456 (24,843) $ 12,572 $ 14,613 TOTAL ASSETS $ 22,757 $ 25,708 LIABILITIES Accounts payable $ Accruals 1,674 482 $ 1,360 1,227 CURRENT LIABILITIES $ 2,156 $ 2,587 Long-term debt Equity $ 1,823 18,778 409 22,712 TOTAL CAPITAL $ 20,601 $ 23,121 TOTAL LIABILITIES AND EQUITY Fitch Inc. Income Statement For the period ended 12/31/X1 ($000) Sales $ 40,643 COGS Gross margin Expense 13,621 $27,022 $ 20,043 EBIT $ 6,979 Interest 180 EBT $ 6,799 Tax $ 22,757 $ 25,708 Net income 2,265 $ 4,534 Fitch also sold stock for $2.5 million and paid dividends of $3.1 million. No fixed assets were retired during the year. (Hint: That implies fixed asset purchases and depreciation are the only changes in gross and accumulated depreciation accounts.) Construct Fitch's statement of cash flows for 20X1. Enter your answers in thousands. For example, an answer of $1.2 million should be entered as 1200, not 1200000. Use a minus sign, to indicate any decreases in cash or cash outflows. FITCH INC. Statement of Cash Flows For the period ended 12/31/X1 ($000) OPERATING ACTIVITIES: Net Income $ Depreciation $ Net changes in current accounts $ Cash from Operating Activities $ INVESTING ACTIVITIES: Increase in Fixed Assets Cash from Investing Activities FINANCING ACTIVITIES: Decrease in Debt Dividends Paid Sale of Stock Cash from Financing Activities NET CASH FLOW Beginning Cash Reconciliation Net Cash Flow Ending Cash $ $ $ $ $ $ $ $