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Use the following information for Questions 2-7. Beta Corp. has the following balance sheet and the income statement: Statement of Financial Position as of December
Use the following information for Questions 2-7.
Beta Corp. has the following balance sheet and the income statement:
Statement of Financial Position as of December 31, 2021, and 2022 ($ thousands)
2021 | 2022 | |
ASSETS | ||
Current assets | ||
Cash | 76 | 80 |
Accounts receivable | 146 | 168 |
Inventory | 287 | 342 |
Total | 509 | 590 |
Fixed assets | ||
Net plan and equipment | 2634 | 2970 |
Total assets | 3143 | 3560 |
LIABILITIES AND OWNERS' EQUITY | ||
Current liabilities | ||
Accounts payable | 202 | 264 |
Notes payable | 171 | 188 |
Total | 373 | 452 |
Long-term debt | 567 | 420 |
Owners' equity | ||
Common stock | 550 | 784 |
Retained earnings | 1653 | 1904 |
Total | 2203 | 2688 |
Total liabilities and owners' equity | 3143 | 3560 |
Statement of Comprehensive Income ($ thousands)
2021 | 2022 | |
Sales | 2187 | 2472 |
Cost of goods sold | 1168 | 1313 |
Depreciation | 342 | 388 |
Interest paid | 117 | 91 |
Taxes | 25% of taxableincome | 25% of taxableincome |
Dividends | 200 | 259 |
Question 3 (5 points). Calculate:
- Cash flow from assets for Beta Corp. in 2022? (2 points)
- Cash flow to creditors for Beta Corp. in 2022? (1 point)
- Cash flow to shareholders for Beta Corp. in 2022? (1 point)
- Verify that the cash flow identity holds in this case (i.e., show that Cash flow from assets = Cash flow to creditors + Cash flow to shareholders). (1 point)
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