Part1. CASE PROBLEM

Read the following case, analyze interpret and apply the necessary corporate decisions in solving the given below :

Willey, a recent graduate of the University of Technology with four years of banking experience, was recently brought in as assistant to the chairman of the board of Marvel Industries, a manufacturer of electronic goods. The company doubled its plant capacity, opened new sales offices outside its home territory, and launched an expensive advertising campaign. Marvels results were not satisfactory, to put it mildly. Its board of directors, which consisted of its president and vice-president plus its major stockholders (who were all local business people), was most upset when directors learned how the expansion was going. Suppliers were being paid late and were unhappy, and the bank was complaining about the deteriorating situation and threatening to cut off credit. As a result, Sedrick, Marvels president, was informed that changes would have to be made, and quickly, or he would be fired. Also, at the boards insistence, Willey was brought in and given the job of assistant to Faisal, a retired banker who was Marvels chairman and largest stockholder. Faisal agreed to give up a few of his surfing days and to help nurse the company back to health, with Willeys help. Willey began by gathering financial statements and other data. Assume that you are Willeys assistant, and you must help him answer the following questions for Marvel.

Some recent financial statements for Marvel Corporation follow.

a. Use the above information to prepare the 2021 statement of cash flows for Marvel Corporation. Calculate the net cash from operating activities.(Negative answers should be indicated by a minus sign.)

b. Work as a team in conducting a thorough investigation of all the activities and determining the net cash for investment activities.

c. Undertake a critical evaluation of all the activities. Provide the net cash in financing activities and also the cash at the beginning and end of the year.

2020 2020 2021 Assets Current assets Cash Accounts receivable Inventory MARVEL CORPORATION 2020 and 2021 Balance Sheets Liabilities and 2021 Owners'Equity Current liabilities $ 39,350 Accounts payable 28.877 Notes payable 44,336 Other $ 32,653 $ 34,886 $ 44,285 16,848 16,911 18,058 34,495 18.871 25,619 Total $ 84,059 $ 112,563 Total $ 71.815 $ 86,752 Long-term debt $ 110.000 $ 140,000 $ 55,000 $ 55,000 Owners' equity Common stock and paid in surplus Accumulated retained earnings Fixed assets 288,343 333,683 Net plant and equipment $441,099 $ 502,872 Total $ 343,343 $.388,683 Total assets S 525,158 $ 615,435 Total liabilities and owners' equity $ $25,158 $ 615,435 MARVEL CORPORATION 2021 Income Statement Sales Cost of goods sold Depreciation $ 531,750 377.294 46,686 Earnings before interest and taxes Interest paid $ 107,770 20,650 Taxable income Taxes (25%) $ 87,120 21,780 Net income $ 65,340 Dividends Retained earnings $ 20,000 45,340