In order to increase sales, the management decided they would make a low-end product, which can be
Fantastic news! We've Found the answer you've been seeking!
Question:
In order to increase sales, the management decided they would make a low-end product, which can be sold for less and meet the needs of the budget-conscious consumer. The statements above reflect their financial situation at the completion of the first year after implementing this new idea.
The company sold no new stock but paid dividends of $3,000. The depreciation for the year was $7,851 and no fixed assets were sold.
Construct a statement of cash flows for the company by filling in the blanks given below. Use a minus sign, to indicate any decreases in cash or cash outflows. If an amount is zero, enter "0".
Pippen Co Balance Sheet | ||||||
For the period ended 12/31/X1 ($000) | ||||||
ASSETS | ||||||
12/31/X0 | 12/31/X1 | |||||
Cash | $ | 2,900 | $ | 1,021 | ||
Receivables | 19,342 | 24,489 | ||||
Inventory | 10,184 | 14,330 | ||||
CURRENT ASSETS | $ | 32,426 | $ | 39,840 | ||
Fixed assets | ||||||
Gross | $ | 79,159 | $ | 96,225 | ||
Accum. deprec. | (60,515) | (68,366) | ||||
Net | $ | 18,644 | $ | 27,859 | ||
TOTAL ASSETS | $ | 51,070 | $ | 67,699 | ||
LIABILITIES & EQUITY | ||||||
Accts payable | $ | 2,560 | $ | 6,209 | ||
Accruals | 797 | 993 | ||||
CURRENT LIABILITIES | $ | 3,357 | $ | 7,202 | ||
Long-term debt | $ | 36,564 | $ | 48,630 | ||
Equity | 11,149 | 11,867 | ||||
TOTAL CAPITAL | $ | 47,713 | $ | 60,497 | ||
TOTAL LIABILITIES AND EQUITY | $ | 51,070 | $ | 67,699 |
Pippen Corp | |||
Income Statement | |||
For the period ended 12/31/X1 | |||
($000) | |||
Revenue | $ | 83,416 | |
COGS | 39,654 | ||
Gross margin | $ | 43,762 | |
Expenses | $ | 34,086 | |
EBIT | $ | 9,676 | |
Interest | 3,947 | ||
EBT | $ | 5,729 | |
Tax | 2,011 | ||
EAT | $ | 3,718 |
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date: