Question 1C

1. (30 pts) Technology Corporation increased its sales from $375,000 in 2012 to $ 450,000 in2013 as shown in the firm's income statements presented below, LaAnn Sands, CEO and founder of the firm, expressed concern that the cash account and the firm's cash declined substantially between 2012 and 2013. Salza's complete balance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN STHOUSANDS) 2012 $375 -225 150 -46 Net sales Less Cost of goods sold Grow profit Les Operating expenses Less: Depreciation Less Interest Income before anes Les Income taxes Net income Cash dividends 2013 S450 -270 1 NO -46 -30 + 100 10 $20 520 + BALANCE SHEETS AS OF DECEMBER 31 (IN S THOUSANDS) 2012 $ 39 50 ISI 2:40 200 -95 105 5:45 2013 S16 80 204 300 290 -125 105 $ 465 Cash Accounts receivables Inventories Total current assets Gross fixed assets Less accumulated depreciation Net fixed as Totales Account payable Bank loan Accrued liabilities Total current liabilities Long-term debt Common stock Retained caming Total liabilities and equity $ 30 20 10 $ 45 27 23 95 15 15 18 5.345 120 235 S 465 1 A. (20 pts) Prepare a statement of cash flows for 2013 for Salza Technology Corporation B. (15 pts) LaAnn Sands wants to conduct revenue breakeven analyses of Salza Technology Corporation for 2013. For 2013, the firm's cost of goods sold is considered to be variable costs, and operating expenses are considered to be fixed cash costs. Depreciation expenses in 2013 are expected to be fixed costs. Interest expenses in 2013 are expected to be fixed costs. Calculate Satra's EBDAT breakeven in terms of survival revenues for 2013 C. (15 pts) Conduct NOPAT breakeven analysis for 2013. 1. (30 pts) Technology Corporation increased its sales from $375,000 in 2012 to $ 450,000 in2013 as shown in the firm's income statements presented below, LaAnn Sands, CEO and founder of the firm, expressed concern that the cash account and the firm's cash declined substantially between 2012 and 2013. Salza's complete balance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN STHOUSANDS) 2012 $375 -225 150 -46 Net sales Less Cost of goods sold Grow profit Les Operating expenses Less: Depreciation Less Interest Income before anes Les Income taxes Net income Cash dividends 2013 S450 -270 1 NO -46 -30 + 100 10 $20 520 + BALANCE SHEETS AS OF DECEMBER 31 (IN S THOUSANDS) 2012 $ 39 50 ISI 2:40 200 -95 105 5:45 2013 S16 80 204 300 290 -125 105 $ 465 Cash Accounts receivables Inventories Total current assets Gross fixed assets Less accumulated depreciation Net fixed as Totales Account payable Bank loan Accrued liabilities Total current liabilities Long-term debt Common stock Retained caming Total liabilities and equity $ 30 20 10 $ 45 27 23 95 15 15 18 5.345 120 235 S 465 1 A. (20 pts) Prepare a statement of cash flows for 2013 for Salza Technology Corporation B. (15 pts) LaAnn Sands wants to conduct revenue breakeven analyses of Salza Technology Corporation for 2013. For 2013, the firm's cost of goods sold is considered to be variable costs, and operating expenses are considered to be fixed cash costs. Depreciation expenses in 2013 are expected to be fixed costs. Interest expenses in 2013 are expected to be fixed costs. Calculate Satra's EBDAT breakeven in terms of survival revenues for 2013 C. (15 pts) Conduct NOPAT breakeven analysis for 2013