Worldwide Widget Manufacturing, Inc

Statement of Cash Flows for year Ending December 31, 2015

(in millions of dollars)

Section A. Cash flows from operating activities

Net income n. ?

Additions (sources of cash):

Depreciation 114

Increase in accrued wages and taxes o?

Increase in accounts payable 62

Subtractions (uses of cash):

Increase in accounts receivable -41

Increase in inventory p?

Net cash flow operating activities q?

Section B. Cash flows from investing activities

Subtraction:

Increase in fixed assets -$343

Increase in other long-term assets r?

Net cash flow from investing activities: s?

Section C. Cash flows from financing activities

Additions:

Increase in notes payable t?

Increase in common and preferred stock 0

Subtractions:

Decrease in long-term debt -25

Pay dividends u?

Net cash flow from financing activities: v?

Section D. Net change in cash and marketable securities $105

n. Net income ________________

o. Increase in accrued wages and taxes ______________________

p. Increase in inventory ___________________________________

q. Net cash flow from operating activities ______________________

r. Increase in other long-term assets _________________________

s. Net cash flow from investing activities ________________________

t. Increase in notes payable _________________________________

u. Pay dividends _________________________________________

v. Net cash flow from financing activities _______________________

Worldwide Widget Manufacturing, INC

Income Statement for Years Ending December 31, 2015 and 2014

(in millions of dollars)

2015 2014

Net sales g.? $2,018

Less: Cost of goods sold 753 h.?

Gross profits $1,623 $1,189

Less: Other operating expenses 423 167

Earnings before interest, taxes, depreciation, and amortization (EBITDA) $1,200 $1,022

Less: Depreciation 114 114

Earnings before interest and taxes (EBIT) $1,086 $908

Less: Interest i? 128

Earnings before taxes (EBT) $949 $780

Less: Taxes j? 234

Net income $664 $546

Less: Preferred stock dividends 98 98

Net income available to common stock holders $566 $448

Less: Common stock dividends 219 199

Addition to retained earnings $347 $249

Per (common) share data:

Earnings per share (EPS) k. ? $1.79

Dividends per share (DPS) $0.88 i?

Book value per share (BVPS) m? $5.77

Market value per share (MVPS) . $23.97 $22.47

g. Net sales for 2015 _________________________________

h. Less: Cost of goods sold for 2014 ______________________

i. Less: Interest for 2015 ________________________________

j. Less: Taxes for 2015 _________________________________

k. Earnings per share (EPS) for 2015 ______________________

l. Dividends per share (DPS) for 2014 ______________________

m. Book value per share (BVPS) for 2015 ____________________

Worldwide Widget Manufacturing, Inc.

Balance Sheet as of December 31, 2015 and 2014

(in millions of dollars)

2015 2014 2015 2014

Assets Liabilities and Equity

Current assets: Current liabilities:

Cash and marketable securities $ 427 $ 322 Accrued wages and taxes $ 309 $ 257

Accounts receivable a. ? 259 Accounts payable 381 b. ?

Inventory 815 797 Notes payable $ 492 $ 421

Total $1,542 $1,378 Total $1,182 $997

Fixed assets: Long-term debt: 1,934 c. ?

Gross plant and equipment d. ? $2,817 Total 3,116 2,956

Less: Depreciation 368 254 Stockholders' equity:

Net plant and equipment $2,872 $2,563 Preferred stock (30 million shares) $ 30 $30

Other long-term assets 521 487 Common stock and paid-in surplus 300 e. ?

(250 million shares)

Retained earnings 1,489 1,142

Total FA f. ? $3,050 Total Equity $1,819 $1,472

Total assets $4,935 $4,428 Total liabilities and equity $4,935 $4,428

1. Accounts receivable for 2015_______
2. Accounts payable for 2014_______
3. Long-term debt for 2014_______
4. Gross plant and equipment for 2015_______
5. Common stock and paid-in surplus (250 million shares) for 2014_______
6. Total FA for 2015_______

Worldwide Widget Manufacturing, Inc.

Statement of Retained Earnings as of December 31, 2015

(in millions of dollars)

Balance of retained earnings, December 31, 2014 $1,142

Plus: Net income for 2015 w. ?

Preferred stock x. ?

Common stock 219

Total cash dividends paid 317

Balance of retained earnings, December 31, 2015 $1,489

w. Plus: Net income for 2015 _______

x. Preferred stock _______

1B. For each of the items listed below, indicate on which of the major statements they would be found (1, 2, 3, or 4)

and the amount shown on the statements above:

1. Balance sheet 3. Statement of cash flows

2. Income statement 4. Statement of retained earnings

1. Earnings before taxes for 2015_______; $_______
2. Gross plant and equipment for 2015 _______; $_______
3. Increase in fixed assets, December 31, 2015 _______; $_______
4. Net sales for 2015 _______; $_______
5. Balance of retained earnings, December 31, 2015 _______; $_______
6. Common stock and paid-in surplus for 2014 _______; $_______
7. Net cash flow from investing activities, December 31, 2015 _______; $_______
8. Increase in inventory, December 31, 2015 _______; $_______
9. Accrued wages and taxes for 2014 _______; $_______
10. Book value per share (BVPS) for 2015 _______; $_______