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Cash Flows and Financial Statements at Sunset Boards

1) Sunset Boards' financial statements for 2018 and 2019 show increases in sales, costs, assets and equity. 2) Their income statements show increasing net income each year, with dividends paid at 50% of net income. 3) Their balance sheets show growing assets, liabilities and equity from 2018-2019.

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1K views4 pages

Cash Flows and Financial Statements at Sunset Boards

1) Sunset Boards' financial statements for 2018 and 2019 show increases in sales, costs, assets and equity. 2) Their income statements show increasing net income each year, with dividends paid at 50% of net income. 3) Their balance sheets show growing assets, liabilities and equity from 2018-2019.

Uploaded by

131N
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Chapter 2

Cash Flows and Financial Statements at Sunset Boards

Input area:

2018 2019
Cost of goods sold $ 224,359 $ 283,281
Cash 32,372 34,394
Depreciation 63,334 71,584
Interest expense 13,783 15,780
Selling & Administrative 44,121 57,586
Accounts payable 57,220 63,479
Net fixed assets 279,419 348,508
Sales 440,122 536,483
Accounts receivable 22,939 29,755
Notes payable 26,079 28,474
Long-term debt 141,040 158,368
Inventory 48,272 66,244
New equity - 27,157

Tax rate 21% 21%


Dividend percentage 50% 50%

Output area:
2018 Income Statement
Sales $ 440,122
Cost of goods sold 224,359
Selling & Administrative 44,121
Depreciation 63,334
EBIT $ 108,308
Interest 13,783
EBT $ 94,525
Taxes 19,850
Net income $ 74,675
Dividends $ 37,337
Addition to retained earnings $ 37,338

2019 Income Statement


Sales $ 536,483
Cost of goods sold 283,281
Selling & Administrative 57,586
Depreciation 71,584
EBIT $ 124,032
Interest 15,780
EBT $ 108,252
Taxes 22,733
Net income $ 85,519
Dividends $ 42,759
Addition to retained earnings $ 42,760

Balance sheet as of Dec. 31, 2018


Cash $ 32,372 Accounts payable $ 57,220
Accounts receivable 22,939 Notes payable 26,079
Inventory 48,272 Current liabilities $ 83,299
Current assets $ 103,583
Long-term debt $ 141,040
Net fixed assets $ 279,419 Owners' equity $ 158,663
Total assets $ 383,002 Total liab. & equity $ 383,002

Balance sheet as of Dec. 31, 2019


Cash $ 34,394 Accounts payable $ 63,479
Accounts receivable 29,755 Notes payable 28,474
Inventory 66,244 Current liabilities $ 91,953
Current assets $ 130,393
Long-term debt $ 158,368
Net fixed assets $ 348,508 Owners' equity $ 228,580
Total assets $ 478,901 Total liab. & equity $ 478,901

2018 2019
Operating cash flow $ 151,792 $ 172,883
Capital Spending
Ending net fixed assets $ 348,508
- Beginning net fixed assets 279,419
+ Depreciation 71,584
Net capital spending $ 140,673

Change in Net Working Capital


Ending NWC $ 38,440
-Beginning NWC 20,284
Change in NWC $ 18,156

Cash Flow from Assets


Operating cash flow $ 172,883
- Net capital spending 140,673
-Change in NWC 18,156
Cash flow from assets $ 14,054

Cash Flow to Creditors


Interest paid $ 15,780
-Net New Borrowing 17,328
Cash flow to Creditors $ (1,548)

Cash Flow to Stockholders


Dividends paid $ 42,759
-Net new equity raised 27,157
Cash flow to Stockholders $ 15,602

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