Create Statements of Cash Flow for 2020 and 2021 using the indirect method.

 Compute Free Cash Flow for 2020 and 2021.

Information

You begin by analyzing the firm’s financials over the last four years, which are presented in the supplemental datasheet. As part of your discovery process, you collect some industry metrics (see datasheet). You also learn that the company sold no property, plant, or equipment during the time periods presented. The company repurchased 12,500 shares of common stock on Jan 1, 2021 at $10/share. And finally, the company’s normal credit terms extended to its customers are net 20.

 

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Table 1 Balance Sheets Pictacts : Cash Accounts receivable, not Marchand Inventory Other current assots Property, Plant, & Equipment, net Total Liables and equity Accounts payable Accruals & other current liabilities Long-term Notes Payable Paid-in Capital; $0.01 par value common stock Reained Earnings Total liabilities and equity Table 2 Income Stat Sales Cost of goods sold Operating expenses Dipreciation Seling & Administrative Expense Operating income Interest Expense Pro-tax Profit Income Tax Expense (Beat) Not Income Table 3 Other Information Dividends Paid Yarend Stock prica Avg. Shares outstanding Ellective Tax Ra Sales of Property, Plant, & Equipment 2018 $33,655 $229,910 $685,435 2019 $108,000 $65,000 $72,000 $300,000 $328,000 $439,000 $798,000 $813,000 $894,000 50 $0 $57,000 561,00 $436,000 $331,000 $404,000 $370,000 $1,385,000 $1,537,000 $1,667,000 $1,836,000 2018 $165,497 $156,240 $113,588 $125,010 $505,421 $480,128 $457,912 $476,990 50 $0 $258,898 $404,290 $700,000 $700,000 $575.000 $575,000 $14.082 $201632 5261,602 $254.710 $1,385,000 $1,537,000 $1,667,000 $1,836,000 2019 2018 2000 $98.960 $148,440 $292,350 $3,346,750 $3,380,550 $3,635,000 $4,240,000 $2.510,063 $2,384,000 $2,980,000 $3,680,000 2019 2021 2020 $105,000 $105,000 $154,500 $159,000 $484,288 $404, 300 $297 550 $303 320 $247 400 $487,250 $202,950 50 50 $43,000 $247 400 $487,250 $159,950 $194,900 $63,980 $105,800 $12.80 $10.50 112.500 112,500 40.00% 40.00% $0 $0 2021 2020 $97,680 $67.000 $30,680 $12.272 $95,970 STR.408 2021 $35,000 $25,300 $6.00 $3.50 100,000 100,000 40.00% 40.00% $0 sa Table 1 Balance Sheets Pictacts : Cash Accounts receivable, not Marchand Inventory Other current assots Property, Plant, & Equipment, net Total Liables and equity Accounts payable Accruals & other current liabilities Long-term Notes Payable Paid-in Capital; $0.01 par value common stock Reained Earnings Total liabilities and equity Table 2 Income Stat Sales Cost of goods sold Operating expenses Dipreciation Seling & Administrative Expense Operating income Interest Expense Pro-tax Profit Income Tax Expense (Beat) Not Income Table 3 Other Information Dividends Paid Yarend Stock prica Avg. Shares outstanding Ellective Tax Ra Sales of Property, Plant, & Equipment 2018 $33,655 $229,910 $685,435 2019 $108,000 $65,000 $72,000 $300,000 $328,000 $439,000 $798,000 $813,000 $894,000 50 $0 $57,000 561,00 $436,000 $331,000 $404,000 $370,000 $1,385,000 $1,537,000 $1,667,000 $1,836,000 2018 $165,497 $156,240 $113,588 $125,010 $505,421 $480,128 $457,912 $476,990 50 $0 $258,898 $404,290 $700,000 $700,000 $575.000 $575,000 $14.082 $201632 5261,602 $254.710 $1,385,000 $1,537,000 $1,667,000 $1,836,000 2019 2018 2000 $98.960 $148,440 $292,350 $3,346,750 $3,380,550 $3,635,000 $4,240,000 $2.510,063 $2,384,000 $2,980,000 $3,680,000 2019 2021 2020 $105,000 $105,000 $154,500 $159,000 $484,288 $404, 300 $297 550 $303 320 $247 400 $487,250 $202,950 50 50 $43,000 $247 400 $487,250 $159,950 $194,900 $63,980 $105,800 $12.80 $10.50 112.500 112,500 40.00% 40.00% $0 $0 2021 2020 $97,680 $67.000 $30,680 $12.272 $95,970 STR.408 2021 $35,000 $25,300 $6.00 $3.50 100,000 100,000 40.00% 40.00% $0 sa