1. For Paxton Corp above, explain the change in cash position on the balance sheet between December 2018 and December 2019 by identifying the source and uses of cash for the company for the year 2019 (set up a column each for sources and uses of cash implied by the behavior of assets and liabilities of the company, then sum up each column).

Paxton Corp
	Dec-18	Dec-19			Dec-18	Dec-19
Cash	$13,320	$14,306		Accounts Payable	$9,504	$10,512
Accounts Receivable	18,994	21,099		Notes Payable	14,508	16,466
Inventory	13,794	22,754		Current Liabilities	$24,012	$26,978
Current Assets	$46,108	$58,159		Long Term Debt	$136,800	$152,000
Net Fixed Assets	$344,426	$406,311		Owners' Equity	$229,722	$285,492
Total Assets	$390,534	$464,470		Total Liab& Eq.	$390,534	$464,470

	2019
Sales	$565,200
Cost of goods sold	274,025
Selling & Admin	124,733
Depreciation	54,576
EBIT	$111,866
Interest	19,296
EBT	92,570
Taxes	48,137
Net Income	$44,433
Dividends	$9,600

2. Prepare a Statement of Cash Flows for Paxton Corp. whose financials are provided above.

What do you conclude from the figures in the Sources & Uses of cash statement (question 1) or from the Cash Flow Statement (question 2)?

Answer rating: 100% (QA)

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