The Castillo Company reported operating profits of $60,000, Depreciation expenses of $40,000, Interest expense of $10,000 and paid $10,000 in taxes in 2017. Following are the Company’s balance sheets for 2016 and 2017.
C&B CASTILLO COMPANY
2016 2017
Cash $50,000 $5,000
Accounts Receivables 200,000 300,000
Inventories 400,000 480,000
Total Current Assets 650,000 785,000
Gross Fixed Assets 450,000 570,000
Accumulated Depreciation -100,000 -140,000
Net Fixed Assets 350,000 430,000
Total Assets $1,000,000 $1,215,000
Accounts Payable $130,000 $170,000
Accruals 50,000 40,000
Bank Loan 90,000 110,000
Total Current Liabilities 270,000 320,000
Long-Term Debt 300,000 425,000
Common Stock 150,000 150,000
Paid-in-Capital 200,000 200,000
Retained Earnings 80,000 120,000
Total Liabilities & Equity $1,000,000 $1,215,000
Req a. | ||||||
Cash flows from Operating activities | ||||||
Net Income for the year | 60,000 | |||||
Adjustment required for reconciliation | ||||||
Depreciation | 40,000 | |||||
Increase in Accounts receivable | -1,00,000 | |||||
Incease in Inventories | -80,000 | |||||
Increase in Accounts payable | 40,000 | |||||
Decrease in Accruals | -10,000 | |||||
Net cash used in Operating activities | -50,000 | |||||
Req b. | ||||||
Cash flows from Investing activities | ||||||
Purchase of Fixed Assets | -1,20,000 | |||||
Net cash used in Investing activities | -1,20,000 | |||||
Req c | ||||||
Cash Flows from Financing activities | ||||||
Borrowing from Bank Loan-Current | 20,000 | |||||
Issuance of Long term debt | 1,25,000 | |||||
Dividend paid (80,000 +60,000-120,000) | -20,000 | |||||
Net cash provided from Financing activities | 1,25,000 | |||||
Req d. | ||||||
CASH FLOW STATEMENT | ||||||
Cash flows from Operating activities | ||||||
Net Income for the year | 60,000 | |||||
Adjustment required for reconciliation | ||||||
Depreciation | 40,000 | |||||
Increase in Accounts receivable | -1,00,000 | |||||
Incease in Inventories | -80,000 | |||||
Increase in Accounts payable | 40,000 | |||||
Decrease in Accruals | -10,000 | |||||
Net cash used in Operating activities | -50,000 | |||||
Cash flows from Investing activities | ||||||
Purchase of Fixed Assets | -1,20,000 | |||||
Net cash used in Investing activities | -1,20,000 | |||||
Cash Flows from Financing activities | ||||||
Borrowing from Bank Loan-Current | 20,000 | |||||
Issuance of Long term debt | 1,25,000 | |||||
Dividend paid (80,000 +60,000-120,000) | -20,000 | |||||
Net cash provided from Financing activities | 1,25,000 | |||||
Net decrease in cash | -45,000 | |||||
Beginning balance of cash | 50,000 | |||||
Ending balance of cash | 5,000 | |||||
The Castillo Company reported operating profits of $60,000, Depreciation expenses of $40,000, Interest expense of $10,000...
Help with #8 please?
quarter ending December 31, 2017. B. Prepare monthly pro forma balance sheets at the end of October, November, and December 2017. C. Prepare both a monthly cash budget and pro forma statements of cash flows for October, Novem ber, and December 2017. D. Describe your findings and indicate the maximum amount of bank borrowing that is needed & Cash Conversion Cycle Two years of financial statement data for the Munich Export Corpor shown below. A. Calculate...
Balance Sheet 2012 2013 Cash $50,000 $50,000 Accounts Receivables 200,000 300,000 Inventories 450,000 570,000 Total Current Assets 700,000 920,000 Fixed Assets, Net 300,000 380,000 Total Assets $1,000,000 $1,300,000 Accounts Payable 130,000 $180,000 Accruals 50,000 70,000 Bank Loan 90,000 90,000 Total Current Liabilities 270,000 340,000 Long-Term Debt 400,000 550,000 Common Stock ($.05 par)...
4. Suppose the Robinson Company had a cost of goods sold of
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Cash and marketable securities Accounts receivable 2017 $50,000 350,000 500,000 $900,000 $250,000 Inventories 2016 $50,000 300,000 350,000 $700,000 $200,000 0 150,000 $350,000 Total current assets Accounts payable Bank loan Accruals...
At the end of 2015, the Carillon Project has $125,000 in accumulated depreciation and $100,000 in retained earnings. Sales Notes Payable Tax Rate Gross Fixed Assets Total Current Liabilities Interest Expense Cash Accounts Payable COGS Total Current Assets Total Liabilities Net Income General, Selling and Administrative Expenses Accounts Receivable Addition to Retained Earnings 2016 $350,000 20,000 40% $750,000 130,000 20,000 20,000 80.000 40% of Sales 130,000 300,000 36,000 10% of Sales 2017 $450,000 50,000 40% $1,100,000 170,000 30,000 30,000 60.000...
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Income Statement Year Ended 12/31/18 Balance Sheet Sales Cost of Goods Sold Operating Expenses Depreciation Expense100,000 EBIT Interest Expense EBT Taxes Net Income 12/31/2018 12/31/2017 $60,000$45,000 880,000650,000 200,000Less Acc'd Depreciation 450,000350,000 350,000 $395,000 $1.400,000 Current Assets 750,000 Gross Fixed Assets Fixed Assets 430,000 $490,000 50,000 Total Assets 50,000 00,000 Current Liabilities 120,000Long-term Debt $35,000 330,000 5,000 $50,000 270,000 5,000 70,000 $395,000 180,000 Common Stock Retained Earnings Total Liabilities & Equity $490.000 110 $395.000 a) Prepare the 2018 common-sized income statement...
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