Explore BrainMass
Share

Explore BrainMass

    Sunny Fruit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    B1. (Financial statements) Consider the following financial information for Sunny Fruit Co.
    Balance Sheet, December 31
    (Figures in millions of dollars)

    LIABILITIES AND
    LATEST PREVIOUS STOCKHOLDERS' LATEST PREVIOUS
    ASSETS YEAR YEAR EQUITY YEAR YEAR
    Current assets $400 $200 Current liabilities $150 $195
    Net fixed assets 600 400 Long-term debt 500 100
    Partial Income Statement,
    latest year ending December 31
    (Figures in millions of dollars)
    Sales $900
    Cost of goods sold 200
    Selling and administrative expenses 200
    Depreciation 100
    Interest expense 50

    a. What is stockholders' equity in the previous and latest years?
    b. Assume a tax rate of 40%. What are income taxes paid and net income after taxes for
    the latest year?
    c. The company did not issue or repurchase any stock during the latest year. What dividend
    was paid?
    d. Given the change in net fixed assets and depreciation expense, what is the amount of
    fixed assets purchased during the latest year?
    e. What is net working capital in the previous and latest years?
    f. What is cash provided (used) by operations during the latest year (the increase in
    working capital is a use of cash)? What is cash provided (used) by investing activities?
    What is cash provided (used) by financing activities

    © BrainMass Inc. brainmass.com October 9, 2019, 11:53 pm ad1c9bdddf
    https://brainmass.com/business/dividends-stock-repurchase-and-policy/sunny-fruit-271181

    Solution Summary

    The solution explains how to calculate stockholders' equity, income tax, dividend and fixed asset purchases

    $2.19