Statement of Cash Flows I (2 points each) Using the financial statements for CAT, which are located in the Appendix, prepare a Statement of Cash Flows for CAT. Remember: the bottom line net change in cash & marketable securities is the same change in cash as we observe on the balance sheet from previous year to current year. If your Net Change in Cash & Marketable Securities don't add up to that figure, then you have made an error somewhere! Check your work to make sure it all sums to the right bottom line number. Operating Activities Net Income + Depreciation +/- Change in Accrued Wages & Taxes + / - Change in Accounts Payable + / - Change in Accounts Receivable + / - Change in Inventory Cash Flows from Operating Activities Investing Activities + / - Change in Gross Fixed Assets Cash Flows from Investing Activities Financing Activities + + + / - Change in Notes Payable + / - Change in Long-Term Debt - Dividends Paid Cash flows From Financing Activities Net Change in Cash & Marketable Securities APPENDIX Corporate Tax Tables Pay This Amount on Base Income Plus This Percentage on Anything Over the Base Taxable Income $0-50,000 $0 15% $50,001-75,000 $7,500 25% $75,001-$100,000 $13,750 34% $100,001-335,000 $22,250 39% $335,001-10,000,000 $113,900 34% $10,000,001-15,000,000 $3,400,000 35% $15,000,001-18,333,333 $5,150,000 38% Over $18,333,333 $6,416,667 35% CICATI Cat-Opia Cat Litter Co (CAT) Financial Statements (25) Cat-Opia Cat Litter Company Income Statement Income Statement Sales Less: Cost of Goods Sold Gross Profit Less: Other Operating Expenses EBITDA (Earnings Before Interest, Taxes, Depreciation & Amz) Less: Depreciation & Amortization EBIT (Earnings Before Interest & Taxes) Less: Interest EBT(Earnings Before Taxes, i.e. Taxable Income) Less: Taxes Net Income Less: Common Stock Dividends Addition to Retained Earnings 2018 $ 100 $ $ $ (15) $ $ (15) $ $ (25) $ : :0 $ $ $ Addition to Retained Earnings $ 9 Assets Current Assets Cash Accounts Receivable Inventory Total Cat-Opia Cat Litter Company Balance Sheet 2018 2017 Liabilities & Equity 2018 2017 $ 35 $ 25 Current Liabilities Accrued Wages & Taxes $ 6 $ 5 $ 11 $ 10 Accounts Payable $ 5 $ 2 $ 60 $ 50 Notes Payable $ 3 $ 5 $ 106 $ 85 Total $ 14 $ 12 Fixed Assets 90 $ 65 Plant & Equipment Less: Depreciation Net Total Fixed Assets $ $ $ 12 75 $ 45 Long-Term Debt (35) $ (20) 40 $ 25 Stockholder's Equity Common Stock* Retained Earnings Total Equity 146 $ 110 Total Liabilities & Equity 21 $ $ $ $ 12 $ 30 $ 42 $ 146 $ 33 Total Assets $ 110 4 Assets Current Assets Cash Accounts Receivable Inventory Total Custom Reactionless Engine Company Balance Sheet 2018 2017 Liabilities & Equity 2018 2017 $ 33 $ 31 Current Liabilities Accrued Wages & Taxes $ 31 $ 27 $ 22 $ 19 Accounts Payable $ 7 $ 11 $ 93 $ 85 Notes Payable $ 10 $ 10 $ 148 $ 135 Total $ 48 $ 48 Fixed Assets $ 84 $ 81 Plant & Equipment Less: Depreciation Net Total Fixed Assets 75 $ 155 $ 140 Long-Term Debt $ (48) $ (40) $ 107 $ 100 Stockholder's Equity Common Stock* Retained Earnings Total Equity $ 255 $ 235 Total Liabilities & Equity $ $ $ $ 75 $ 48 $ 123 $ 255 $ 31 106 Total Assets 235 Custom Reactionless Engine Co (CRE) Financial Statements Custom Reactionless Engine Company Income Statement Income Statement 2018 Sales $ 135 Less: Cost of Goods Sold $ (45) Gross Profit $ 90 Less: Other Operating Expenses $ (34) EBITDA (Earnings Before Interest, Taxes, Depreciation & Amz) $ 56 Less: Depreciation & Amortization $ (8) EBIT (Earnings Before Interest & Taxes) $ 48 Less: Interest $ (9) EBT(Earnings Before Taxes, i.e. Taxable Income) $ 39 Less: Taxes $ (12) Net Income $ 27 Less: Common Stock Dividends $ (10) Addition to Retained Earnings $ 17
