Question

Cash flow to owners. Use the data from the following financial statements in the popup​ window, LOADING.... The company paid interest expense of $ 18 comma 100 for 2017 and had an overall tax rate of 40 % for 2017. Find the cash flow to owners for 2017 by parts and​ total, with the parts being dividends paid and increases in borrowing from owners​ (change in common stock and​ paid-in-surplus).

aspx?homeworkId=550UJO Financial Statements 15 of 16 (14 complete) Data Table 40% 1 18 SIN (Click on the following icon in order to copy its contents into a spreadsheet.) Partial Incomhistatement Year Ending 2017 Sales revenue $350,200 Cost of goods sold $141,800 Fixed costs Selling, general, and administrative expenses Depreciation (Click on the following icon in order to copy its contents into a spreadsheet.) Partial Balance Sheet 12/31/2016 ASSETS LIABILITIES Cash $16,100 Notes payable Accounts receivable $28,200 Accounts payable Inventories $47,900 Long-term debt Fixed assets $367,800 OWNERS' EQUITY Accumulated depreciation $142,000 Retained earnings Intangible assets $82,200 Common stock (Click on the following icon in order to copy its contents into a spreadsheet.) Partial Balance Sheet 12/31/2017 $14,000 $19,100 $190,000 $131.900 click Print Done

The distributed earning is

Answer 1

Preparing INCOME STATEMENT for year ending 2017

Particular	Amount in $
Sales	350200
Cost of Goods Sold	(141800)
Fixed Costs	(43100)
Depreciation	(46100)
Selling,general & Admin exp	(27900)
Earning before Interest & Taxes(EBIT)	91300
Interest Expenses	(18100)
Earning Before tax(EBT)	73200
Tax@40%	(29280)
Net Income	43920

Preparing balance Sheet for the year 2016

Assets		Liabilities & Owner's equity
Cash	16100	Notes Payable	14000
Accounts Receivables	28200	Accounts payable	19100
Inventory	47900
Total Current Asset	92200	Total Current Liabilities	33100
Fixed Assets 367800		Long term debt	190000
Less: Acc. Dep (142000)	225800	Common Stock	131900
Intangible assets	82200	Retained earnings (balancing Fig)	45200
	400200		400200

Preparing balance Sheet for the year 2017

Assets		Liabilities & Owner's equity
Cash	26100	Notes Payable	12100
Accounts Receivables	19000	Accounts payable	23800
Inventory	52900
Total Current Asset	98000	Total Current Liabilities	35900
Fixed Assets 448000		Long term debt	161900
Less: Acc. Dep* (188100)	259900	Common Stock	182000
Intangible assets	82000	Retained earnings (balancing Fig)	60100
	439900		439900

*- Previous Years Accumulated Depreciation added with this years Depreciation = (142000+46100)

Cash Flow to owners = Dividend paid - Net new Equity Issued

Dividend Paid = Opening retained earning of 2017 + Profit of 2017 - Closing retained earning of 2017

= 45200 + 43920 - 60100

= $ 29020

Net New Equity Issued = Closing Common Stock - Opening Common Stock

= 182000 - 1319000

= $ 50100

Cash Flow to owners for 2017 = 29020 - 50100

= - $ 21080