Developing a Cash Flow Statement/ FINANCE ACCOUNTING

exercise_4.2_cash_flows_template.xlsx

Income Statement

			Income Statement for the year ended 12/31/2011
				Amount in Dollars
			Sales	2,000,000.00
			Cost of Goods Sold	1,500,000.00
			Gross Profit	500,000.00
			Selling and Administrative Expenses	270,000.00
			Depreciation Expense	50,000.00
			Operating Profit (EBIT)	180,000.00
			Interest Expense	20,000.00
			Earnings Before Taxes	160,000.00
			Taxes	49,500.00
			Net Income	110,500.00
			Notes:
			Dividends Paid to Preferred Stockholders	10,500.00
			Cash Dividend to Common Stockholders	50,000.00

Comparative Balance Sheet for the Years 2009 and 2010
			12/31/09	12/31/10
Assets			Amount in Dollars
	Current Assets:
		Cash	30,000.00	40,000.00
		Marketable Securities	10,000.00	10,000.00
		Accounts Receivable	170,000.00	200,000.00
		Inventory	160,000.00	180,000.00
		Prepaid Expenses	30,000.00	20,000.00
			400,000.00	450,000.00
	Long Term Investments		20,000.00	50,000.00
	Plant and Equipment		1,000,000.00	1,100,000.00
	Less Accumulated Depreciation		550,000.00	600,000.00
	Net Plant and Equipment		450,000.00	500,000.00
	Total Assets		870,000.00	1,000,000.00
Liabilities and Stockholders' Equity
	Current Liabilities
		Accounts Payable	45,000.00	80,000.00
		Notes Payable	100,000.00	100,000.00
		Accrued Expenses	35,000.00	30,000.00
			180,000.00	210,000.00
	Long Term Liabilities
		Bonds Payable, 2020	40,000.00	90,000.00
	Total Liabilities		220,000.00	300,000.00
	Stockholders' Equity
		Preferred Stock	50,000.00	50,000.00
		Common Stock	100,000.00	100,000.00
		Capital Paid in Excess of Par	250,000.00	250,000.00
		Retained Earnings	250,000.00	300,000.00
	Total Stockholders' Equity		650,000.00	700,000.00
	Total Liabilities and Stockholders' Equity		870,000.00	1,000,000.00

			Cash Flow from Operating Activities as of 12/31/2009
			Entry Name	Amount
			Net Cash Flow from Operating Activities	- 0

				Cash Flow from Investing Activities as of 12/31/2010
				Entry Name	Amount
				Net Cash Flow from Investing Activities	- 0

				Cash Flow from Financing Activities as of 12/31/2010
				Entry Name	Amount
				Net Cash Flow from Financing Activities	- 0