Problem set(Mangerial Finance)
Ravi12
FinancialStatementsOtherData.xlsxMini Case
| Computron's Income Statement | ||||||
| 2019 | 2020 | |||||
| INCOME STATEMENT | ||||||
| Net sales | $ 2,059,200 | $ 3,500,640 | ||||
| Cost of Goods Sold (Except depr. and amort.) | $ 1,718,400 | $ 2,988,000 | ||||
| Other Expenses | $ 204,000 | $ 432,000 | ||||
| Depreciation and amortization | $ 11,340 | $ 70,176 | ||||
| Total Operating Costs | $ 1,933,740 | $ 3,490,176 | ||||
| Earnings before interest and taxes (EBIT) | $ 125,460 | $ 10,464 | ||||
| Less interest | $ 37,500 | $ 105,600 | ||||
| Pre-tax earnings | $ 87,960 | $ (95,136) | ||||
| Taxes (40%) | $ 35,184 | $ (38,054) | ||||
| Net Income | $ 52,776 | $ (57,082) | ||||
| Dividends | $ 13,200 | $ 6,600 | ||||
| Tax rate | 40% | 40% | ||||
| Computron's Balance Sheets | ||||||
| 2019 | 2020 | |||||
| Assets | ||||||
| Cash and equivalents | $ 5,400 | $ 4,369 | ||||
| Short-term investments | $ 29,160 | $ 12,000 | ||||
| Accounts receivable | $ 210,720 | $ 379,296 | ||||
| Inventories | $ 429,120 | $ 772,416 | ||||
| Total current assets | $ 674,400 | $ 1,168,081 | ||||
| Gross fixed assets | $ 294,600 | $ 721,770 | ||||
| Less: Accumulated depreciation | $ 87,720 | $ 157,896 | ||||
| Net plant and equipment | $ 206,880 | $ 563,874 | ||||
| Total assets | $ 881,280 | $ 1,731,955 | ||||
| Liabilities and equity | ||||||
| Accounts payable | $ 87,360 | $ 194,400 | ||||
| Notes payable | $ 120,000 | $ 432,000 | ||||
| Accruals | $ 81,600 | $ 170,976 | ||||
| Total current liabilities | $ 288,960 | $ 797,376 | ||||
| Long-term bonds | $ 194,059 | $ 600,000 | ||||
| Common Stock | $ 276,000 | $ 276,000 | ||||
| Retained Earnings | $ 122,261 | $ 58,579 | ||||
| Total Equity | $ 398,261 | $ 334,579 | ||||
| Total Liabilites and Equity | $ 881,280 | $ 1,731,955 | ||||
| Computron's Statement of Cash Flows Bart Kreps: The statement of cash flows provides information about cash inflows and outflows during an accounting period. |
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| 2020 | ||||||
| Operating Activities | ||||||
| Net Income before preferred dividends | $ (57,081.60) | |||||
| Noncash adjustments | ||||||
| Depreciation and amortization | $ 70,176.00 | |||||
| Due to changes in working capital | ||||||
| Change in accounts receivable | $ (168,576.00) | |||||
| Change in inventories | $ (343,296.00) | |||||
| Change in accounts payable | $ 107,040.00 | |||||
| Change in accruals | $ 89,376.00 | |||||
| Net cash provided by operating activities | $ (302,361.60) | |||||
| Investing activities | ||||||
| Cash used to acquire fixed assets | $ (427,170.00) | |||||
| Change in short-term investments | $ 17,160.00 | |||||
| Net cash provided by investing activities | $ (410,010.00) | |||||
| Financing Activities | ||||||
| Change in notes payable | $ 312,000.00 | |||||
| Change in long-term debt | $ 405,940.80 | |||||
| Payment of cash dividends | $ (6,600.00) | |||||
| Net cash provided by financing activities | $ 711,340.80 | |||||
| Net change in cash and equivilents | $ (1,030.80) | |||||
| Cash and securities at beginning of the year | $ 5,400.00 | |||||
| Cash and securities at end of the year | $ 4,369.20 | |||||
| Corporate Tax Rates | ||||||
| If a corporation's taxable income is between: | It pays this amount on the base of the bracket: | Plus this percentage on the excess over the base | ||||
| (1) | (2) | (3) | (4) | |||
| $0 | $50,000 | $0 | 15.0% | |||
| $50,000 | $75,000 | $7,500 | 25.0% | |||
| $75,000 | $100,000 | $13,750 | 34.0% | |||
| $100,000 | $335,000 | $22,250 | 39.0% | |||
| $335,000 | $10,000,000 | $113,900 | 34.0% | |||
| $10,000,000 | $15,000,000 | $3,400,000 | 35.0% | |||
| $15,000,000 | $18,333,333 | $5,150,000 | 38.0% | |||
| $18,333,333 | and up | $6,416,667 | 35.0% | |||
