Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)
Assets20152014Liabilities and Equity20152014
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$72Stockholders’ equity:
Less: Depreciation2016Preferred stock (2 million shares)$2$2

Common stock and paid-in surplus
Net plant and equipment$71$56(5 million shares)1111
Other long-term assets1919Retained earnings6346

Total$90$75Total$76$59

Total assets$158$130Total liabilities and equity$158$130

CLANCY’S DOG BISCUIT CORPORATION
Income Statement for Years Ending December 31, 2015 and 2014
(in millions of dollars)
20152014
Net sales$90$94
Less: Cost of goods sold4541
Gross profits$45$53
Less: Other operating expenses65
Earnings before interest, taxes depreciation,
and amortization (EBITDA)
$39$48
Less: Depreciation44
Earnings before interest and taxes (EBIT)$35$44
Less: Interest55
Earnings before taxes (EBT)$30$39
Less: Taxes912
Net income$21$27
Less: Preferred stock dividends$1$1
Net income available to common stockholders$20$26
Less: Common stock dividends33
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$

Step by Step Solution

3.45 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

ClancysDog Buiscuit Statement of Cash Flows for Year Ending December 31 2015 A Cash F... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
635d8911288b5_176525.pdf

180 KBs PDF File

Word file Icon
635d8911288b5_176525.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Applications and Theory

Authors: Marcia Cornett

4th edition

1259691411, 978-1259691416

More Books

Students also viewed these Accounting questions

Question

describe the key elements of work;

Answered: 1 week ago

Question

Explain the steps in the violence and chilling effect cycles.

Answered: 1 week ago

Question

List the six steps in constructive confrontation.

Answered: 1 week ago