Required:
1. Prepare a statement of financial position and a statement of income for CS Co. as of, and for the year ended, December 31, 2020. You may combine accounts as appropriate (your judgment). Note that data is available for 2019, but you are preparing statements only for the year 2020.
2. Given the information you have, calculate cash flow from operating activities (just operating activities) for the year ended December 31, 2020. Youll need to make some assumptions since you dont have all of the information you would need normally. Show your calculation! The answer alone is not sufficient for credit.
3. Given the approaching end of the semester, I am not so concerned about the formatting of the statements, do the best you can to make them as professional looking as you can in a short amount of time.
Do this in Excel and use formulas wherever possible (calculating total current assets, for example). When you submit your response, your last name must be included in the file name (302assignStout.xlsx for example).
HINT: Trial balances are organized, assets are presented together with other assets, liabilities with other liabilities, etc. The location of an account is a clue as to what sort of account it is. (The title helps too, of course.)
LEFT IS 2020
RIGHT IS 2019
2020 2019 Long-term notes payable (726,074) (682,510) Cash and equivalents 16,226 15,901 Bonds payable _(162,265) (159,020) Notes receivable 8,113 8,519 Capitalized lease obligations (50,873)_(52,908) Accounts receivable 162,265 155,774 Deferred income taxes (64,203) (61,635) Allowance for bad debts (6,490) (6,166) Raw materials 56,793 55,089 Other noncurrent liabilities(24,340) (25,557) Work-in-process 121,699 126,567 Preferred stock, $10 par value (2,815) (2,956) Finished goods 73,019 69,368 Common stock, $0.01 par value (3,245) (3,277) Prepaid expenses 27,585 28,964 Additional paid-in capital (1,475,677)(1,475,677) Deferred income taxes 14,604 14,458 Retained earnings (1,458,782) (1,400,431) Other current assets 53,547 51,941 Land 114,225 110,798 Treasury stock, at cost 12,667 12,034 Buildings and improvements 892,461 865,687 Sales (4,717,502) (4,718,499) Machinery and equipment 1,945,889 2,043,183 Cost of goods sold 2,950,937 2,832,900 Accumulated depreciation (323,536) (317,065) Advertising expense 354,368 347,281 Patents and trademarks 397,550 381,648 Goodwill 811,328 778,875 Marketing expense 240,181 225,770 Other noncurrent assets 113,586 113,586 Administrative expense 274,044 268,563 Notes payable to banks (129,812) (122,023) General expense 44,350 42,133 Accounts payable (89,246) (85,676) Research and development expense 340,195 346,999 Accrued advertising (32,453) (32,453) Accrued operating expenses (35,698)(34,627) Other technical expense 44,339 43,009 Accrued compensation (11,358) (11,244) Other expense (income) 16,189 15,218 Other accrued expenses (33,100) (34,424) Interest expense 79,450 82,628 Income taxes payable _(14,604) (13,728) Interest income (3,183) (3,151) Other current liabilities (4,868) (4,576) Amortization of intangibles 57,565 56,414 Provision for income taxes 146,949 154,296 2020 2019 Long-term notes payable (726,074) (682,510) Cash and equivalents 16,226 15,901 Bonds payable _(162,265) (159,020) Notes receivable 8,113 8,519 Capitalized lease obligations (50,873)_(52,908) Accounts receivable 162,265 155,774 Deferred income taxes (64,203) (61,635) Allowance for bad debts (6,490) (6,166) Raw materials 56,793 55,089 Other noncurrent liabilities(24,340) (25,557) Work-in-process 121,699 126,567 Preferred stock, $10 par value (2,815) (2,956) Finished goods 73,019 69,368 Common stock, $0.01 par value (3,245) (3,277) Prepaid expenses 27,585 28,964 Additional paid-in capital (1,475,677)(1,475,677) Deferred income taxes 14,604 14,458 Retained earnings (1,458,782) (1,400,431) Other current assets 53,547 51,941 Land 114,225 110,798 Treasury stock, at cost 12,667 12,034 Buildings and improvements 892,461 865,687 Sales (4,717,502) (4,718,499) Machinery and equipment 1,945,889 2,043,183 Cost of goods sold 2,950,937 2,832,900 Accumulated depreciation (323,536) (317,065) Advertising expense 354,368 347,281 Patents and trademarks 397,550 381,648 Goodwill 811,328 778,875 Marketing expense 240,181 225,770 Other noncurrent assets 113,586 113,586 Administrative expense 274,044 268,563 Notes payable to banks (129,812) (122,023) General expense 44,350 42,133 Accounts payable (89,246) (85,676) Research and development expense 340,195 346,999 Accrued advertising (32,453) (32,453) Accrued operating expenses (35,698)(34,627) Other technical expense 44,339 43,009 Accrued compensation (11,358) (11,244) Other expense (income) 16,189 15,218 Other accrued expenses (33,100) (34,424) Interest expense 79,450 82,628 Income taxes payable _(14,604) (13,728) Interest income (3,183) (3,151) Other current liabilities (4,868) (4,576) Amortization of intangibles 57,565 56,414 Provision for income taxes 146,949 154,296
