Enable Editing Unit 2 Exercise Questions Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable income Less: Taxes Net income Addition to retained earnings Dividends paid $1,384 605 180 599 80 519 156 $363 $254 109 Cash Accounts rec. Inventory Total Net fixed assets 2019 $350 370 $720 Flamingo, Inc. 2018 and 2019 Statement of financial positions (S in millions) 2018 2019 2018 $100 $121 Accounts payable $400 350 425 Notes payable 390 440 410 Total $790 $890 $956 Long-term debt 500 1.556 1,704 Owner's equity Common stock 600 Retained 556 earnings Total 1.156 $2.446 $2.660 Total liabilities $2,446 550 580 810 1,390 $2.660 Total assets I Q1. Show detailed calculations of CFFA under two approaches we have discussed in our class. (60 marks) Focus W e ga e to search Bi L $2,446 $2,660 Total liabilities $2,446 $2,660 Q1. Show detailed calculations of CFFA under two approaches we have discussed in our class. (60 marks) Q2. Comment on the cashflow performance of the company in the years of 2018 and 2019.20 marks) Q3. If you were to advise Flamingo Inc. for the year 2020, what recommendations would you propose regarding the capital structure of the company? Why? (20 marks) YORKVILLE WWW.YORKVILLE.CA Instructions Complete the work in MS Word and make the submission in unit 2 exercise on the moodle according to the deadline. Show detailed step by step calculations in your answers. Cite specific lecture related examples to justify your descriptive answers. . 0 BI 9 W ENG 5:18 PM IN 1/23/2020 Enable Editing Unit 2 Exercise Questions Flamingo, Inc. 2019 statement of comprehensive income ($ in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable income Less: Taxes Net income Addition to retained earnings Dividends paid $1,384 605 180 599 80 519 156 $363 $254 109 Cash Accounts rec. Inventory Total Net fixed assets 2019 $350 370 $720 Flamingo, Inc. 2018 and 2019 Statement of financial positions (S in millions) 2018 2019 2018 $100 $121 Accounts payable $400 350 425 Notes payable 390 440 410 Total $790 $890 $956 Long-term debt 500 1.556 1,704 Owner's equity Common stock 600 Retained 556 earnings Total 1.156 $2.446 $2.660 Total liabilities $2,446 550 580 810 1,390 $2.660 Total assets I Q1. Show detailed calculations of CFFA under two approaches we have discussed in our class. (60 marks) Focus W e ga e to search Bi L $2,446 $2,660 Total liabilities $2,446 $2,660 Q1. Show detailed calculations of CFFA under two approaches we have discussed in our class. (60 marks) Q2. Comment on the cashflow performance of the company in the years of 2018 and 2019.20 marks) Q3. If you were to advise Flamingo Inc. for the year 2020, what recommendations would you propose regarding the capital structure of the company? Why? (20 marks) YORKVILLE WWW.YORKVILLE.CA Instructions Complete the work in MS Word and make the submission in unit 2 exercise on the moodle according to the deadline. Show detailed step by step calculations in your answers. Cite specific lecture related examples to justify your descriptive answers. . 0 BI 9 W ENG 5:18 PM IN 1/23/2020