Helpp

Helpp

      

 

      

 

      

 

      

 

 
       

 

      

 

      

 

      

 

      

 

      

 

      

 

      

 

      

 

      

 

      

 

 

 

Income Statement

Balance Sheet

 

Next Year

 

This Year

Next Year

Revenue

$5,000

Total assets

$1,000

$2,000

Operating expenses

4,000

Liabilities & equity:

 

 

EBIT

1,000

Current liabilities

$  576

$  200

Interest (8%)

  ?  

Long-term debt

100

?

EBT

 ?  

Equity

   324

?

Taxes(40%)

  ?  

 

 

 

Earnings after tax

  ?  

Total liabilities

 

 

 

 

& equity

$1,000

$2,000

 

The firm pays 8% interest on all of its debt and is subject to a 40% tax rate. Complete the plan.

 

      

 

     1.   Emperor Corporation’s financial statements for the last year are shown below. The firm paid a $1,000 dividend to its stockholders during the year. There were no sales of new stock.

 

Balance Sheets

ASSETS

 Ending

Beginning

Income Statement

Cash   

$ 2,000 

$ 1,600 

Sales

$100,000

Accounts receivable 

 12,000 

 5,200 

COGS 

  80,000

Inventory  

 14,000  

 15,600 

Gross Margin

$ 20,000

 

Current Assets

$28,000 

$22,400 

Cash Expenses

$  8,000

Gross Fixed assets

$27,000  

$20,000 

Depreciation

   1,600

Accumulated depreciation

(16,000)

(14,400)

EBIT 

$ 10,400

 

Net fixed assets

 11,000 

 5,600 

Interest 

     800

Total assets 

$39,000 

$28,000

EBT 

$  9,600

LIABILITIES

 

 

Tax 

   2,600

Accounts payable 

 $ 3,000 

 $ 2,500 

Net Income

 $  7,000

Accruals

1,000 

  1,500 

 

 

 

Current Liabilities

 $ 4,000 

 $ 4,000 

 

 

Long term Debt

 10,000  

  5,000 

 

 

Equity

  25,000  

  19,000 

 

 

 

Total liabilities & equity

$39,000 

$28,000 

 

 

           

 

Develop Emperor’s Statement of Cash Flows.

 

      

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