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The below tables shows Dynamic Mattresss year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016
The below tables shows Dynamic Mattresss year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) | ||||||
Assets | Liabilities and Shareholders Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | $ | 48 | Bank loans | $ | 48 | |
Marketable securities | 24 | Accounts payable | 145 | |||
Accounts receivable | 124 | |||||
Inventory | 220 | |||||
Total current assets | $ | 416 | Total current liabilities | $ | 193 | |
Fixed assets: | ||||||
Gross investment | $ | 264 | Long-term debt | 39 | ||
Less depreciation | 84 | Net worth (equity and retained earnings) | 364 | |||
Net fixed assets | $ | 180 | ||||
Total assets | $ | 596 | Total liabilities and net worth | $ | 596 | |
Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) | ||||||
Assets | Liabilities and Shareholders Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | $ | 188.0 | Debt due within a year (bank loans) | $ | 67.0 | |
Marketable securities | 0.0 | Accounts payable | 194.0 | |||
Accounts receivable | 152.0 | |||||
Inventory | 267.0 | |||||
Total current assets | $ | 607.0 | Total current liabilities | $ | 261.0 | |
Fixed assets: | ||||||
Gross investment | $ | 373.0 | Long-term debt | 88.0 | ||
Less depreciation | 90.5 | Net worth (equity and retained earnings) | 540.5 | |||
Net fixed assets | $ | 282.5 | ||||
Total assets | $ | 889.5 | Total liabilities and owners equity | $ | 889.5 | |
Dynamic Mattress Income Statement for 2017 (figures in $ millions) | ||
Sales | $ | 1,514.0 |
Operating costs | 1,422.5 | |
$ | 91.5 | |
Depreciation | 20.5 | |
EBIT | $ | 71.0 |
Interest | 19.0 | |
Pretax income | $ | 52.0 |
Tax at 50% | 26.0 | |
Net income | $ | 26.0 |
Notes: Dividend = $100 million and reinvested earnings = $80 million.
Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.)
Answer is complete but not entirely correct.
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