OXLY Corporation provided the following Statements for 2014-15 Balance Sheet 2015 2014 Assets $ $ Cash
Question:
- OXLY Corporation provided the following Statements for 2014-15 –
Balance Sheet 2015 2014
Assets $ $
Cash 40,000 70,000
Accounts Receivable 320,000 350,000
Inventory 460,000 320,000
Total Current Asset 820,000 740,000
Gross Fixed Assets 560,000 520,000
Accumulated Depreciation 180,000 150,000
Net Fixed Asset 380,000 370,000
Total Asset 1,200,000 1,110,000
Liabilities & Stockholders’ Equity
Current Liabilities
Accounts Payable 390,000 320,000
Notes Payable 110,000 90,000
Accrued Expense 20,000 20,000
Total Current Liabilities 520,000 430,000
Long Term Debt 320,000 350,000
Total Liabilities 840,000 780,000
Stockholders’ Equity
Common Stock at par 100,000 100,000
Share Premium Reserve 150,000 150,000
Retained Earnings 110,000 80,000
Total Liabilities & Stockholders’ Equity 1,200,000 1,110,000
Income Statement 2015
$
Sales 2,200,000
Cogs 1,420,000
Gross Profit 780,000
Operating Expenses 600,000
Operating Income (EBIT) 180,000
Interest 29,000
Earnings before Tax (EBT) 151,000
Tax (30%) 45,000
Earnings after Tax (Net Income) 106,000
Additional Information:
- Purchased equipments paying $40,000 cash.
- Annual depreciation expense was $30,000.
- Paid cash dividend of $76,000.
- No sale of fixed asset.
Required
Prepare a Cash Flow Statement for the year 2015
Calculate the following Ratios for the year 2015 and also indicate the significance of each ratio – Current Ratio, Quick Ratio, Accounts Receivable Turnover, Profit Margin, Asset
Turnover, ROA, Return on Common Stockholders’ Equity, Debt to Asset, Times Interest Earned ratio.
Expert Answer:
Operating activity Earning before interest and tax 180000 Depreciation 30000 210000 Changes in worki... View the full answer
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
