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Use the balance sheet and income statement below : CLANCYS DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2015 and 2014 (in millions of
Use the balance sheet and income statement below : |
CLANCY’S DOG BISCUIT CORPORATION Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) | ||||||||||||||
Assets | 2015 | 2014 | Liabilities and Equity | 2015 | 2014 | |||||||||
Current assets: | Current liabilities: | |||||||||||||
Cash and marketable securities | $ | 6 | $ | 6 | Accrued wages and taxes | $ | 7 | $ | 5 | |||||
Accounts receivable | 38 | 28 | Accounts payable | 25 | 23 | |||||||||
Inventory | 33 | 33 | Notes payable | 24 | 21 | |||||||||
Total | $ | 81 | $ | 67 | Total | $ | 56 | $ | 49 | |||||
Fixed assets: | Long-term debt: | $ | 43 | $ | 41 | |||||||||
Gross plant and equipment | $ | 91 | $ | 72 | Stockholders’ equity: | |||||||||
Less: Depreciation | 20 | 16 | Preferred stock (2 million shares) | $ | 2 | $ | 2 | |||||||
Common stock and paid-in surplus | ||||||||||||||
Net plant and equipment | $ | 71 | $ | 56 | (5 million shares) | 11 | 11 | |||||||
Other long-term assets | 19 | 19 | Retained earnings | 63 | 46 | |||||||||
Total | $ | 90 | $ | 75 | Total | $ | 76 | $ | 59 | |||||
Total assets | $ | 158 | $ | 130 | Total liabilities and equity | $ | 158 | $ | 130 | |||||
CLANCY’S DOG BISCUIT CORPORATION Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) | |||||||
2015 | 2014 | ||||||
Net sales | $ | 90 | $ | 94 | |||
Less: Cost of goods sold | 45 | 41 | |||||
Gross profits | $ | 45 | $ | 53 | |||
Less: Other operating expenses | 6 | 5 | |||||
Earnings before interest, taxes depreciation, and amortization (EBITDA) | $ | 39 | $ | 48 | |||
Less: Depreciation | 4 | 4 | |||||
Earnings before interest and taxes (EBIT) | $ | 35 | $ | 44 | |||
Less: Interest | 5 | 5 | |||||
Earnings before taxes (EBT) | $ | 30 | $ | 39 | |||
Less: Taxes | 9 | 12 | |||||
Net income | $ | 21 | $ | 27 | |||
Less: Preferred stock dividends | $ | 1 | $ | 1 | |||
Net income available to common stockholders | $ | 20 | $ | 26 | |||
Less: Common stock dividends | 3 | 3 | |||||
Addition to retained earnings | $ | 17 | $ | 23 | |||
Per (common) share data: | |||||||
Earnings per share (EPS) | $ | 4.00 | $ | 5.20 | |||
Dividends per share (DPS) | $ | 0.60 | $ | 0.60 | |||
Book value per share (BVPS) | $ | 14.80 | $ | 11.40 | |||
Market value (price) per share (MVPS) | $ | 15.45 | $ | 14.80 | |||
Prepare a statement of cash flows for Clancy’s Dog Biscuit Corporation. (Enter your answers in millions of dollars. Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) |
Statement of Cash Flows for Year Ending December 31, 2015 (in millions of dollars) | |
A. Cash flows from operating activities | |
(Click to select)Net incomeNet loss | $ |
Additions (sources of cash): | |
(Click to select)Increase in long-term debt increase in accounts payable increase in accrued wages and taxes increase in notes payableDepreciation | |
(Click to select)Increase in accrued wages and taxes increase in notes payableIncrease in accounts payableDepreciationIncrease in long-term debt | |
(Click to select)Increase in long-term debt increase in notes payableIncrease in accounts payableDepreciationIncrease in accrued wages and taxes | |
Subtractions (uses of cash): | |
(Click to select)Increase in long-term debt increase in notes payableIncrease in inventory increase in accounts receivable increase fixed assets | |
(Click to select)Increase in accounts receivable increase in notes payableIncrease fixed assets increase in long-term debt increase in inventory | |
Net cash flow from operating activities | $ |
B. Cash flows from investing activities | |
Subtractions: | |
(Click to select)DepreciationIncrease in accounts payable increase in fixed assets increase in accrued wages and taxes increase in other long-term assets | $ |
(Click to select)Increase in other long-term assetsDepreciationIncrease in accrued wages and taxes increase in fixed assets increase in accounts payable | |
Net cash flow from investing activities | $ |
C. Cash flows from financing activities | |
Additions: | |
(Click to select)Increase in notes payableIncrease accrued wages and taxes increase in long-term debt increase in common and preferred stock increase in accounts payable | $ |
(Click to select)Increase in long-term debt increase in accounts payable increase accrued wages and taxes increase in common and preferred stock increase in notes payable | |
(Click to select)Increase accrued wages and taxes increase in notes payableIncrease in common and preferred stock increase in accounts payable increase in long-term debt | |
Subtractions: | |
(Click to select)Increase in accounts payable increase accrued wages and taxesCommon stock dividend preferred stock dividends increase in other long-term assets | |
(Click to select)Increase accrued wages and taxesCommon stock dividends increase in accounts payable increase in other long-term assets referred stock dividends | |
Net cash flow from financing activities | $ |
D. Net change in cash and marketable securities | $ |
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