Question

Partial Income Statement Year Ending 2017 Sales revenue $350,000 Cost of goods sold $141,900 Fixed costs $43,200 Selling, general, and administrative expenses $28,000 Depreciation $45,900 Partial Balance Sheet 12/31/2016 ASSETS LIABILITIES Cash $16,100 Notes payable $13,900 Accounts receivable $27,900 Accounts payable $19,000 $47,800 Long-term debt $189,900 Inventories Fixed assets $367,900 OWNERS' EQUITY Accumulated depreciation $141,700 Retained earnings $82,100 Common stock Intangible assets $132,000 Partial Balance Sheet 12/31/2017 ASSETS LIABILITIES $11,900 Cash $26,000 Notes payable $19,000 Accounts payable Accounts receivable $24,100 $162,000| Inventories $53,100 Long-term debt Fixed assets $448,200 OWNERS' EQUITY Accumulated depreciation Retained earnings Intangible assets $82,100 Common stock $181,900

Cash flow identity.  The company paid interest expense of $17,700 for 2017 and had an overall tax rate of 40% for 2017.

Verify the cash flow​ identity:

cash flow from assets = cash flow to creditors + cash flow to owners

A. The cash flow from assets is $______

B. The cash flow to creditors is $______

C. The cash flow to owners is $_______

Answer 1

Income statement for the year ending 2017
	Amount($)
Sales Revenue	350000
Less: Cost of goods sold	141900
	208100
Less: Fixed costs	43200
Less: Selling, general and administrative expenses	28000
Less: Depreciation	45900
Less: Interest	17700
Profit before tax	73300
Tax@40%	29320
Profit after tax	43980
Balance sheet 12/31/2016
ASSETS	Amount($)	LIABILITIES	Amount($)
Cash	16100	Notes Payable	13900
Accounts receivable	27900	Accounts Payable	19000
Inventories	47800	Long-term debt	189900
Fixed assets	367900	OWNER'S EQUITY
Less: Accumlated depreciation	141700	Retained earnnings	45300
Net fixed assets	226200	Common stock	132000
Intangible assets	82100
	400100		400100
Balance sheet 12/31/2017
ASSETS	Amount($)	LIABILITIES	Amount($)
Cash	26000	Notes Payable	11900
Accounts receivable	19000	Accounts Payable	24100
Inventories	53100	Long-term debt	162000
Fixed assets	448200	OWNER'S EQUITY
Less: Accumlated depreciation	187600	Retained earnnings	60900
Net fixed assets	260600	Common stock	181900
Intangible assets	82100
	440800		440800
Cash flow statement:
Net Income	43980
Depreciation	45900
	89880
Change in Accounts receivable	8900
Change in Inventories	-5300
Change in notes payable	-2000
Change in accounts payable	5100
Cash flow from operating activities	96580
Investment in Fixed assets	-80300
Payment of Long term debt	-27900
Increase in common stock	49900
Drawings	-28380
Change in the cash during the year	9900
Cash balance as on 12/31/2016	16100
Cash balance as on 12/31/2017	26000
A. The cash flow from assets:	-76700
B. The cash flow to creditors	-24800
C. The cash flow to owner is	111400