| SEMO Manufacturing |
| Prepare a cash flow statement for 2014. |
| Stock Price | | $10.00 | $8.00 | $6.00 |
| WACC | | 14.00% | 14.00% | 14.00% |
| Income Statement ($000) |
| SEMO Manufacturing Company |
| For the Years Ended December 31, |
| | | 2012 | 2013 | 2014 |
| | | $ | $ | $ |
| Sales revenue | | 5,550,000 | 5,900,000 | 6,500,000 |
| Less: Cost of goods sold | | 4,273,500 | 4,602,000 | 5,135,000 |
| Gross profits | | 1,276,500 | 1,298,000 | 1,365,000 |
| Less: Operating expenses |
| Selling expense | | 444,000 | 477,900 | 533,000 |
| General and administrative expenses | | 233,100 | 265,500 | 305,500 |
| Depreciation expense | | 125,000 | 150,000 | 180,000 |
| Total operating expense | | 802,100 | 893,400 | 1,018,500 |
| Operating profits | | 474,400 | 404,600 | 346,500 |
| Less: Interest expense | | 125,000 | 150,000 | 180,000 |
| Net profits before taxes | | 349,400 | 254,600 | 166,500 |
| Less: Taxes (rate = 35%) | | 122,290 | 89,110 | 58,275 |
| Net profits after taxes | | 227,110 | 165,490 | 108,225 |
| Earnings per Share ($) | | 0 | 0 | 0 |
| Number of Shares | | 1,000,000 | 1,000,000 | 1,000,000 |
| Dividends ($) | | 30,000 | 30,000 | 30,000 |
| Balance Sheet ($000) |
| SEMO Manufacturing Company |
| As of December 31 |
| Assets | | 2012 | 2013 | 2014 |
| | | $ | $ | $ |
| Current assets |
| Cash | | 200,000 | 140,000 | 120,000 |
| Accounts receivable | | 524,167 | 639,167 | 758,333 |
| Inventories | | 693,750 | 786,667 | 975,000 |
| Total current assets | | 1,417,917 | 1,565,834 | 1,853,333 |
| Gross fixed assets | | 1,705,000 | 2,061,869 | 2,339,506 |
| Less: Accumulated depreciation | | 800,000 | 950,000 | 1,130,000 |
| Net fixed assets | | 905,000 | 1,111,869 | 1,209,506 |
| Total assets | | 2,322,917 | 2,677,703 | 3,062,839 |
| Liabilities and Stockholders’ Equity |
| Current liabilities |
| Accounts payable | | 296,771 | 370,717 | 542,028 |
| Notes payable | | 220,000 | 265,000 | 275,000 |
| Accruals | | 5,550 | 5,900 | 6,500 |
| Total current liabilities | | 522,321 | 641,617 | 823,528 |
| Long-term debts | | 450,000 | 550,000 | 675,000 |
| Total liabilities | | 972,321 | 1,191,617 | 1,498,528 |
| Stockholders’ equity |
| Common stock (1,000,000 shares) | | 900,000 | 900,000 | 900,000 |
| Retained earnings | | 450,596 | 586,086 | 664,311 |
| Total stockholders’ equity | | 1,350,596 | 1,486,086 | 1,564,311 |
| Total liabilities and stockholders’ equity | | 2,322,917 | 2,677,703 | 3,062,839 |
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student.xlsx
