Question: Please solve this question and it's for my assignment, it will be very helpful to solve this: 1. Baker Corporation provided the following Statements for
Please solve this question and it's for my assignment, it will be very helpful to solve this:

1. Baker 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 0,000 370,000 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 ($1 each share) 100.000 100,000 Share Premium Reserve 150.000 150,000 Retained Earnings 110,080 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: 1. Purchased equipment paying $40,000 cash. 2. Annual depreciation expense was $30,000. 3. Paid cash dividend of $76.000. 4. No sale of fixed asset. 5. Current stock price is $2 for each stock. Required Prepare a Cash Flow Statement for the year 2015. (14 ) Calculate all the relevant Ratios for the year 2014 & 2015 and analyze the performance of the company based on liquidity, solvency, and profitability. Your analysis should reflect that the performance is improving or deteriorating and reasons behind that. (15+21)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
