Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ, Inc.'s latest income statement, balance sheet, and statement of cash flows are below. Use this information to answer the following question: Income Statement $19,580

XYZ, Inc.'s latest income statement, balance sheet, and statement of cash flows are below. Use this information to answer the following question:

image text in transcribed

Income Statement $19,580 7,319 $12.261 Sales Revenue Cost of Goods Sold Gross Margin Wage Expense SG&A Depreciation Expense 8900 4,336 662 5,898 S6,363 Income from Operations Other Income/Expenses Interest Expense Gain on Sale of Land $(750) 119 Pretax Income Income tax Net Income (631) $5,732 1,605 S4,127 12/31/Year 1 Balance Sheet 12/31/Year 2 Assets Current Assets Cash S2,098 Accounts Receivable 4,570 Inventory 4,752 Prepaid SGA 877 Total S12,297 Land 0 Property, Plant & Equipment 11,000 Accumulated Depreciation (5,862) Total Assets $17.435 S410 4,900 4,500 908 $10,718 4,000 11,000 (5,200) $20,518 Liabilities and Equity Current Liabilities Accounts Payable Wages Payable Dividends Payable Total Long-Term Debt Equity Common Stock Retained Earnings Total Liabilities and Equity S4,651 2,984 100 $7,735 1,346 S5,140 2,890 100 S8,130 7,388 4,000 4,354 $17,435 4,000 1,000 $20,518 Cash Flow Statement Cash Flow from Operations Net Income $4,127 Decrease in Accounts 330 Receivable Decrease in Accounts Payable (489) Increase in Inventory (252) Increase in Wages Payable 94 Increase in Prepaid SGA 31 Depreciation 662 Gain on Sale of Land (119) Net Cash from Operations S4,384 Cash Flow from Investments Sale of Land Net Cash from Investments $4,119 4,119 Cash Flow from Financing Retirement of Long-Term Debt Dividends Paid Net Cash from Financing S(6,042) (773) (6,815) Net Increase in Cash Beginning Cash Ending Cash S1.688 410 S2,098 What was the sustainable growth rate (SGR) in Year 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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_2

Step: 3

blur-text-image_3

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

Automotive Audits Principles And Practices

Authors: D. H. Stamatis

1st Edition

0367696592, 978-0367696597

More Books

Students also viewed these Accounting questions

Question

Write another resonance structure for acetamide.

Answered: 1 week ago

Question

Identify conflict triggers in yourself and others

Answered: 1 week ago