Mangerial financde 620

CalculationDocument:-https://www.slideshare.net/Connally24/foundations-of-financial-management-16th-edition-block-solutions-manual

Group Problem Set 1: This problem Set is based on materials covered in module1/week 1. It is designed for you to demonstrate your understanding of basic financialstatements, financial statement analysis, break-even concepts, financial and operatingleverages. Before you start this assignment, please review weeks 1 and 2 materialsthoroughly.

Finance date of Adams Stores, Inc. for the year ending 2016 and 2017.

ItemsSales Cash

Other Expenses Retained Earnings Long-termdebtCost of goods sold Depreciation

Short-term investments FixedAssets

Interest Expenses

Shares outstanding (par value

= $4.60)

Market Price of stock Accounts Receivable AccountspayableInventory

Notes Payable Accumulated Depreciation

Accruals

2016

2017

$3,432,000

$5,834,400

9,000

7,282

340,000

720,000

203,768

97,632

323,432

1,000,000

2,864,000

4,980,000

18,900

116,960

48,600

20,000

491,000

1,202,950

62,500

176,000

100,000

100,000

8.50

6

351,200

632,160

145,600

324,000

715,200

1,287,360

200,000

720,000

146,200

263,160

136,000

284,960

TaxRate40%40%

Instructions:

As a group, complete the following activities using the financial information above:

Part 1:Financial Statements

1. Prepare the income statement for 2016 and 2017. Include statement ofretained earnings for2017
3. Prepare the balance sheet for 2016 and2017
4. Prepare Common-Size financial statements of income statement andbalance sheet.
5. Prepare Statement of CashFlows