Consider the following income statement, retained earnings statement, and balance sheets.

(a) From End 2014 to End 2015, the net change in working capital is?

(b) From End 2014 to End 2015, the net change in the company's cash position is?

(c) What is the amount of retained earnings generated by the company's operation in Year 2015?

Transcribed Image Text:

2015 Income Statement $ Revenue Warranty/ Bad Debt Net Revenue COGS Contribution Margin SG&A (incl depreciation) Operating Income Other Income Net Income Balance Sheet $ Current Assets: 242.00 Cash Receivables 211.00 Inventory 400.00 32.00 Prepaid Expenses 866.00 3.00 863.00 327.94 Subtotal 885.00 535.06 388.00 147.06 End 2014 End 2015 17.00 164.06 355.00 282.00 366.00 26.00 1029.00 Fixed Assets: Fixed Assets at Cost 2259.00 2005.00 Less Acc. Depreciation 598.00 425.00 Book value 1661.00 1580.00 Goodwill & Intangibles 29.00 6.00 Total Assets 2575.00 2615.00 2015 Retained Earnings Statement $ Retained Earnings, start of year Net Earnings for the year Less: Dividend Paid Retained Earnings, end of year Current Liabilities: S.T. Credit Line Accounts Payable Accrued Expenses Cur. Por. of L.T. Debt Subtotal Long Term Liabilities: Long Term Debt Shareholders Equity: End 2014 End 2015 95.00 43.00 1.00 86.00 225.00 552.00 Capital Shares 489.00 Retained Earnings 446.00 Tot. Liab, and Eq. 1712.00 242.00 73.00 31.00 122.00 468.00 870.00 543.00 608.06 2489.06 446.00 164.06 2.00 608.06 2015 Income Statement $ Revenue Warranty/ Bad Debt Net Revenue COGS Contribution Margin SG&A (incl depreciation) Operating Income Other Income Net Income Balance Sheet $ Current Assets: 242.00 Cash Receivables 211.00 Inventory 400.00 32.00 Prepaid Expenses 866.00 3.00 863.00 327.94 Subtotal 885.00 535.06 388.00 147.06 End 2014 End 2015 17.00 164.06 355.00 282.00 366.00 26.00 1029.00 Fixed Assets: Fixed Assets at Cost 2259.00 2005.00 Less Acc. Depreciation 598.00 425.00 Book value 1661.00 1580.00 Goodwill & Intangibles 29.00 6.00 Total Assets 2575.00 2615.00 2015 Retained Earnings Statement $ Retained Earnings, start of year Net Earnings for the year Less: Dividend Paid Retained Earnings, end of year Current Liabilities: S.T. Credit Line Accounts Payable Accrued Expenses Cur. Por. of L.T. Debt Subtotal Long Term Liabilities: Long Term Debt Shareholders Equity: End 2014 End 2015 95.00 43.00 1.00 86.00 225.00 552.00 Capital Shares 489.00 Retained Earnings 446.00 Tot. Liab, and Eq. 1712.00 242.00 73.00 31.00 122.00 468.00 870.00 543.00 608.06 2489.06 446.00 164.06 2.00 608.06

Answer rating: 100% (QA)

a Working capital Current Assets Current Liabilities Working capital e... View the full answer