Cash Flows using provided Income Statement and Balance Sheet
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Eromdt Inc. Corp.
Income Statement (in $)
For the Period Ending
2003 2002
Net Sales 3,074,000 2,567,000
COGS 2,077,000 1,711,000
Gross Profit 997,000 856,000
Selling exp 100,000 108,000
G&A 194,000 187,000
Dep Exp 223,000 223,000
Lease exp 35,000 35,000
Total Operating Exp 552,000 553,000
Operating Earnings 445,000 303,000
Other Inc (Exp)
Int Exp 93,000 91,000
Income before tax 352,000 212,000
Income Tax Benefit (Expense) (102,080) (63,600)
30% 2002 and 29% 2003
Net Income 249,920 148,400
WEEK 4 BALANCE SHEET
Eromdt Inc. Corp. Balance Sheet (in $) as of December 31
Assets 2003 2002
Current assets:
Cash 500,000 350,000
Marketable Securities 0 0
Net Cash and Marketable Securities 500,000 350,000
Accounts receivable, trade 489,470 588,550
Less allowance for doubtful accounts (18,000) (24,000)
Net accounts receivable, trade 471,470 564,550
Inventories:
Raw materials 106,666 75,000
Work-in-process 106,666 75,000
Finished goods 106,667 75,000
Total inventories 320,000 225,000
Total current assets 1,291470 1,139,550
Property and equipment, at cost: 390,000 360,000
Less accumulated depreciation and amortization (150,000) (100,000)
Net property and equipment 240,000 260,000
TOTAL ASSETS 1,531,470 1,399,550
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable 275,000 200,000
Accrued payroll and related taxes 67,000 60,000
Current portion of long-term notes payable 75,000 65,000
Other current liabilities 35,000 35,000
Total current liabilities 452,000 360,000
Other Liabilities:
Long-term notes payable, net of current portion 280,000 351,000
Total other liabilities 280,000 351,000
TOTAL LIABILITIES 732,000 711,000
Stockholders' Equity
Common Stock-$2.50 par 100,000 issued and outstanding 250,000 250,000
Paid in Capital in excess of par value 50,000 50,000
Preferred Stock-$100 par,10% cumulative, 1000 shares authorized and issued 100,000 100,000
Current Year Net Income 249,920 148,400
Retained Earnings 373,550 225,150
Accumulated Dividend Paid Preferred and Common (224,000) (85,000)
NET STOCKHOLDERS' EQUITY 799,470 688,550
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,531,470 1,399,550
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The expert examines the cash flows using provided income statement and balance sheet.
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