cash Flow Statement Assignment Due May 23

Page 1 of 2

FIN 524 Financial Statement Exercise

Ozark's 2019 income statement revealed sales of $1,200,000; EBITDA margin of 17.5%; interest expense of $20,000; and an effective tax rate of 12.5%. No equipment was sold during the year. Equipment purchases were made with cash. The increase in common stock and additional paid-in capital is due to issuing additional shares for cash. Comparative balance sheets for Ozark follow.

Prepare a Statement of Cash Flows using the template provided.

2019 2018 Assets Cash xxx 472,000 Accounts receivable 199,250 71,500 Inventories 250,000 278,800 Prepaids 13,000 xxx Land 250,000 250,000 Building and equipment 1,500,000 1,300,000 Less: Accumulated depreciation -205,000 -175,000 Total assets 2,465,950 2,208,300

Liabilities Accounts payable xxx 93,950 Accrued expenses 10,500 15,000 Income taxes payable 22,000 xxx Stockholders' equity Common stock 710,000 700,000 Paid in capital in excess of par 990,000 800,000 Retained earnings 646,350 586,350 Total liabilities and equity xxx xxx

Page 2 of 2

Cash flows from operating activities: Net income Add (deduct) noncash effects on operating income

Depreciation expense Change in accounts receivable Change in inventory Change in prepaid insurance Change in accounts payable Change in accrued exp Change in income taxes payable

Net cash provided by operating activities

Cash flows from investing activities: Purchase of equipment Net cash used by investing activities

Cash flows from financing activities: Proceeds from issuing stock Dividends on common Net cash provided by financing activities Net decrease in cash Cash balance at January 1, 2019 Cash balance at December 31, 2019