undefined

Compute the missing amounts in the following financial statements. You may assume that accounts receivable

relate only to credit sales and that accounts payable relate only to credit purchases of inventory. There were no

sales of property and equipment during 2019 and any purchases of property and equipment were made using

cash. What is your assessment of the companys financial performance in 2019?

Balance Sheet at December 31, 2018 December 31, 2019

Current assets

Cash ..................................... $15,000 $ 26,500

Marketable securities ......................... 6,000 5,000

Accounts receivable .......................... 12,000 37,000

Merchandise inventory ........................ 52,000 23,000

Prepaid advertising........................... 15,000 18,000

Total current assets .......................... 95,000 109,500

Property, plant, and equipment, (net)............. ? 223,000

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 4,000

Intangible assets............................. ? 7,000

Total assets ................................ $261,000 $343,500

Balance Sheet at December 31, 2018 December 31, 2019

Current liabilities

Accounts payable ............................ $ 12,000 $ 23,000

Wages payable.............................. ? 18,000

Interest payable ............................. 9,000 6,500

Dividends payable ........................... 3,000 ?

Taxes payable .............................. 17,000

12,000

Total current liabilities......................... 46,000 61,500

Long-term debt .............................. ? 86,000

Shareholders equity

Common stock .............................. 150,000 172,000

Retained earnings ........................... 23,000 32,000

Treasury stock .............................. (10,000) ?

Total liabilities and shareholders equity........... $261,000 $343,500

Sales revenue......................................... $ ?

Cost of sales.......................................... 123,000

Gross profit........................................... 162,000

Expenses:

Wages .............................................. 15,000

Advertising ........................................... 18,000

Depreciation .......................................... 28,000

Amortization .......................................... 4,000

Total expenses ........................................ 65,000

Operating profit........................................ 97,000

Interest .............................................. ?

Income (loss) before taxes ............................... 88,000

Tax expense.......................................... ?

Net income ........................................... $ 53,000

Cash flow from operating activities

Cash collections from customers .......................... $ 260,000

Cash payments for:

Inventory............................................. (83,000)

Wages .............................................. (2,000)

Taxes ............................................... (40,000)

Interest .............................................. (11,500)

Advertising ........................................... ?

Net cash provided by operations .......................... 102,500

Cash flow from investing activities

(Purchases) sale of property, plant and equipment ............ (111,000)

(Purchase) sale of marketable securities .................... ?

(Purchase) sale of land.................................. 11,000

Net cash provided by investing activities .................... (99,000)

Cash flow from financing activities

Issuance (repayment) of long-term debt..................... 34,000

Payment of dividend.................................... (45,000)

Issuance (repurchase) of common stock .................... ?

(Purchase) sale of treasury stock.......................... 2,000

Net cash provided by financing activities .................... 13,000

Change in cash........................................ $ ?