FINC2101 Fall 2020 Assignment 1 Below are the Income Statement, Statement of Retained Earnings and Balance Sheet for Technica Inc. 1. Prepare the Statement of Cash flows. Income Statement Technica, Inc. For the year ended December 31,2019 Sales revenues $600,000 Less: Cost of Goods Sold 460,000 Gross Profits $140,000 Less: Operating Expenses General and administrative expenses $30,000 Depreciation expense 30,000 Total Operating Expenses 60,000 Operating profits $80,000 Less: Interest Expense 10,000 Net Profits before taxes $70,000 Less: taxes 27,100 Earnings available for common stock holder $42,900 Earnings per share $2.15 Statement of Retained Earnings Technica, Inc. For the year ended December 31,2019 Retained Earnings balance (Jan 1, 2019) 50,200 Plus: Net profits after taxes (for 2019) 42,900 Less: Cash dividend (paid during 2019) (20,000) Retained Earnings balance (Dec 31, 2019) $73,100 Balance Sheet Technica,Inc. December 31 Assets 2019 2018 Cash $15,000 16,000 Marketable Securities 7,200 8,000 Accounts Receivable 34,100 42,200 Inventories 82,000 50,000 Total Current Assets 138,300 116,200 Land and Buildings 150,000 150,000 Machinery and equipment1 200,000 190,000 Furniture and fixtures 54,000 50,000 Other 11,000 10,000 Total gross fixed assets 415,000 400,000 Less: Accumulated depreciation 145,000 115,000 Net fixed Assets 270,000 285,000 Total Assets $408,300 $401,200 Liabilities and Stock Holder's Equity Accounts Payable 57,000 49,000 Notes Payable 13,000 16,000 Accruals 5,000 6,000 Total Current Liabilities 75,000 71,000 Long term debt 150,000 160,000 Stock holder's equity Common stock equity (shares outstanding:19,500 in 2019, and 20,000 in 2018) 110,200 120,000 Retained Earnings 73,100 50,200 Total Stock holder's equity 183,300 170,200 Total Liabilities and Owner Equity 408,300 401,200

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