Question

4. Cash Flow and Financial Statements: Use the following information for Allison Kopatich Corporation (assume the tax rate is 21 percent) and (i) Draw up an income statement and balance sheet for this company for 2017 and 2018; and (ii) For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. Sales Depreciation Cost of goods sold Other expenses Interest Cash Accounts receivable Short-term notes payable Long-term debt Net fixed assets Accounts payable Inventory Dividends 2017 $ 16,549 2,376 5, 690 1,353 1,110 8,676 11.488 1,674 29,060 72,770 6,269 20,424 1,979 2018 $ 18,498 2,484 6,731 1,178 1,325 9,247 13,482 1,641 35,229 77,610 6,640 21,862 2,314

Answer 1

2018 Allison Kopatich Corporation Income Statement For the Year Ended December 31, 2017 & 2018 2017 Sales 16,549 Less: Cost of goods sold 5,690 Gross profit 10,859 Less: Operating expenses: Depreciation 2,376 Other expense 1,353 Operating profit 7,130 Less: Non-Operating Expense: Interest 1,110 Income before tax 6,020 Less: Tax (21%) 1,264 Net income 4,756 9,247 21,862 13,482 44,591 77,610 77,610 122,201 $ Allison Kopatich Corporation Balance Sheet For the Year Ended December 31, 2017 & 2018 2018 Assets 18,498 2017 6,731 Current assets: 11,767 Cash 8,676 Inventory 20,424 2,484 Accounts receivable 11,488 1,178 Total current assets 40,588 8,105 Fixed assets: Net fixed assets 72,770 1,325 Total fixed assets 72,770 6,780 Total assets $ 113,358 $ 1,424 Liabilities and Shareholders' Equity 5,356 Current liabilities: Accounts payable 6,269 Short-term notes payable 1,674 Tax payable 1,264 Total current liabilities 9,207 Non-current liabilities: 2018 Long-term debt 29,060 5,356 Total non-current liabilities 29,060 2,314 Shareholders' equity 3,042 Retained earnings 2,777 Common stock (Balancing figure) 72,314 Total Shareholders' equity 75,091 Total liabilities and shareholders' Equity $ 113,358 $ 2018 Difference Explanation 77,610 (4,840) $4,840 outflow to puchase new asset. Accounts payable increased by $371. This means more credit was taken from creditors than 6,640 371 payment. 84,250 5,211 $5,211 inflow from stockholders. 6,640 1,641 1,424 9,705 Allison Kopatich Corporation Statement of Retained Earnings For the Year Ended December 31, 2017 & 2018 2017 4,756 1,979 2,777 $ 35,229 35,229 Net income Less: Dividend Ending Balance 3,042 74,225 77,267 122,201 2017 72,770 Assets 6,269 Creditors Stockholders Please give as many likes for the hard work. o 79,039 " the hard work