For the years ending 2013 and 2014, construct a statement of cash flows. How does this statement
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Question:
For the years ending 2013 and 2014, construct a statement of cash flows. How does this statement highlight the operating results and financing decisions of Blue Ridge?
2. For the years ending 2013 and 2014, calculate the free cash flow generated by Blue Ridge.
3. For the years ending 2013 and 2014, verify that free cash flow is equal to the cash flow to providers of capital. This would be the sum of the dividend, the net payment to debt holders (can be negative if the business is increasing debt), and the interest payment (net of tax effects) paid to the debt holders
2012 | 2013 | 2014 | 2015 | ||
Net sales | 5,842 | 7,301 | 9,132 | 11000 | |
Total cost of goods sold | 3,892 | 4,957 | 6,310 | 7590 | |
Gross profit | 1,950 | 2,344 | 2,822 | 3410 | |
Operating expenses | 1,587 | 1,855 | 2,257 | 2750 | |
Earnings before interest and taxes | 363 | 489 | 565 | 660 | |
Interest expense | 54 | 59 | 65 | 65 | |
Income before income taxes | 309 | 430 | 500 | 595 | |
Provision for income taxes | 83 | 116 | 135 | 161 | |
Net income | 226 | 314 | 365 | 434 | |
2012 | 2013 | 2014 | 2015 | ||
Cash | 186 | 209 | 180 | 330 | |
Accounts receivable | 252 | 334 | 457 | 571 | |
Inventory | 732 | 934 | 1,254 | 1432 | |
Current assets | 1,170 | 1,477 | 1,891 | 2333 | |
Net property | 522 | 645 | 832 | 1012 | |
Total assets | 1,692 | 2,122 | 2,723 | 3345 | |
Accounts payable | 379 | 492 | 587 | 734 | |
Accrued expenses | 83 | 122 | 152 | 154 | |
Bank line of credit | 26 | 40 | 101 | 101 | |
Current liabilities | 488 | 654 | 840 | 989 | |
Term loan | 650 | 650 | 750 | 750 | |
Total liabilities | 1,138 | 1,304 | 1,590 | 1739 | |
Owners' equity | 554 | 818 | 1,133 | 1498 | |
Total liabilities and net worth | 1,692 | 2,122 | 2,723 | 3237 |
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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