(Working with financial statements) Based on the balance sheet, B and income statement, , for T. P. Jarmon Company for the year ended December 31, 2018: a. How much is the firm's net working capital and what is the debt ratio? b. Complete a statement of cash flows for the period. c. Compute the changes in the balance sheets from 2017 to 2018. a. How much is the firm's net working capital and what is the debt ratio? The net working capital is $ . (Round to the nearest dollar.) The debt ratio is %. (Round to one decimal place.) b. Complete a statement of cash flows for the period. Complete the operating activities part of the statement of cash flows: (Round to the nearest dollar. NOTE: Input cash inflows as positive values and cash outflows as negative values.) Statement of Cash Flows Cash flows from Operating Activities Net income S Adjustments Depreciation Increase in marketable securities $ Decrease in accounts receivable Prepaid expenses Increase in inventories (less A/P) Decrease in accruals Net cash provided by operating activities $ Complete the investing activities part of the statement of cash flows: (Round to the nearest dollar. NOTE: Input cash inflows as positive values and cash outflows as negative values.) Statement of Cash Flows (Cont'd) Cash Flows from Investing Activities Increase in gross plant and equipment $ Net cash provided (consumed) by investing activities Complete the financing activities part of the statement of cash flows: (Round to the nearest dollar. NOTE: Input cash inflows as positive values and cash outflows as negative values.) Statement of Cash Flows (Cont'd) Cash Flows from Financing Activities Decrease in notes payable Decrease in debt $ Dividends Net cash provided by financing activities Net decrease in cash $ Cash, January 1, 2018 Cash, December 31, 2018 $ c. Compute the changes in the balance sheets from 2017 to 2018. Complete the changes in the assets section of the balance sheets from 2017 to 2018: (Round to the nearest dollar.) Balance Sheet Changes from 2017 to 2018: ASSETS Balance Sheet Changes from 2017 to 2018: ASSETS Cash $ Marketable securities Accounts receivable Inventory Prepaid rent Total current assets $ $ Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Complete the changes in the liabilities and owners' equity section of the balance sheets from 2017 to 2018: (Round to the nearest dollar.) Balance Sheet Changes from 2017 to 2018: (Cont'd) LIABILITIES AND OWNERS' EQUITY Accounts payable $ Accruals payable Total current liabilities $ lantar dabu I x Data Table ZUTT ZUTO $ Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Net plant and equipment Total assets 15,000 6,000 42,000 51,000 1,200 $ 13,800 6,000 33,000 84,880 1,200 $ 115,200 $ 138,880 $ 286,000 $ 269,500 $ 401,200 $ 408,380 Liabilities and Equity 2017 2018 $ 57,000 Accounts payable Accruals $ 48,000 6,000 15,000 $ 69,000 4,800 13,200 $ 75,000 $ 160,000 $ 150,400 Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity $ 172,200 $ 182,980 $ 401,200 $ 408,380 Data Table $ 600,400 459,800 $ 140,600 T. P. Jarmon Company Income Statement for Years Ended 12/31/2018 Sales Less cost of goods sold Gross profit Operating and interest expenses General and administrative $ 29,900 Interest 10,000 Depreciation 29,900 Total operating and interest expenses Earnings before taxes Taxes Net income available to common stockholders Cash dividends Change in retained earnings $ 69,800 $ 70,800 28,320 $ 42,480 31,700 $ 10,780 Print Done
