BRONSON CORPORATION

FINANCIAL POSITION AS OF DECEMBER 31, 2016 AND 2017

(IN MILLIONS)

2016 2017 1. Changes: Inc./Dec. Sources/Uses

Assets in amount
of Cash
Current Assets
Cash 84 98 Increase 14
Accounts Receivable 165 188 Inc. 23 Operating
Uses of Cash
Inventory 393 422 Inc. 29 Operating
Uses of Cash
Total 642 708

Fixed Assets
Property, Plant and Equipment (Net) 2,731 2,880 Inc. 149
Investing Uses of Cash
Total Assets 3,373 3,588

LIABILITIES AND OWNER’S EQUITY

Current Liabilities
Accounts Payable 312 344 Inc. 32 Financing
Sources of Cash
Notes Payable 231 196 Dec. 35 Financing
Uses of Cash
Total 543 540

Long-term Debt 531 457 Dec. 74 Financing

Uses of Cash
Owner’s Equity
Common stock 500 550 Inc. 50 Financing
Sources of Cash
Retained Earnings 1,799 2,041 Inc. 242
Operating Sources of Cash
Total 2,299 2,591
Total Liabilities and Owner’s Equity 3,373 3,588

BRONSON CORPORATION
2017 INCOME STATEMENT
(IN MLLIONS)

Sales 2,311
Cost of Good Sold 1,344
Depreciation 276
Earnings before interest and taxes 691

Interest Paid 141

Taxable income 550
Taxes (34%) 187
Net income 363
Additional Information:

Dividends (paid) 121

Addition to retained earnings 242

2. Preparation of Summary of Sources and Uses

 Sources of Cash:
Increase in Accounts Payable……………32
Increase in Common Stock……………….50
Increase in Retained Earnings………….242
Total………………………………………………….….324

Uses of Cash:
Increase in Accounts Receivable…….……23
Increase in Inventory…………………………..29
Increase in PPE…………………………………..149
Decrease in Notes Payable…………………..35
Decrease in Long Term Debt………………..74
Total…………………………………………………..(310)

Net Cash Inflows ……………………………………………………….14

3. Preparation of Cash Flow Statements

BRONSON CORPORATION
CASH FLOW STATEMENTS
DECEMBER 31, 2017

Cash Beginning Balance…………………………………………………………………………………P84

Cash Flow from Operating Activities

Net Income…………………………………………..……….…...242
Add: Depreciation Expense…………………….............276
Less: Increase in Accounts Receivable………..….…..(23)
Increase in Inventory…………………………..…....(29)
Net Cash Inflows from Operating Activities…….……..…466

Cash Flow from Investing Activities

Increase in Net Property, Plant & Equipment…...(149+276)
Net Cash Outflows from Investing Activities……….....…(425)

Cash Flow from Financing Activities

Increase in Accounts Payable………….…...……..…32
Increase in Common Stock………………….………….50
Decrease in Notes Payable……………………..….…(35)
Decrease in Long Term Debt…………..……...….….(74)
Net Cash Outflows from Financing Activities………..…..…(27)

Net of Cash …………………………………………………………………………………..………………14

Cash, End Balance ……………………………………………………………………………………….P98

QUIZ : CASH FLOW STATEMENTS

Name:_______________________

Score:____________
Year and Section: ______________

Date:_____________

KLAY BASTY COMPANY

BALANCE SHEET
2018 and 2019

2019 2018
Assets

Current Assets
Cash 90 100
Accounts Receivable 110 90
Prepaid Supplies 200 180
Merchandise Inventory 170 120
Net Property, plant and equipment 170 150
Total Assets 370 320

LIABILITIES AND OWNER’S EQUITY

Current Liabilities
Accounts Payable 100 160
Notes Payable 160 100
Long-term Debt 160 200
Common stock 100 140
Retained Earnings 220 40
Total Liabilities and Owner’s Equity 370 320

KLAY BASTY COMPANY

2019 INCOME STATEMENT

Sales 1,600
Cost of Good Sold 600
Depreciation 200
Earnings before interest and taxes 800
Interest Paid 160
Taxable income 640
Taxes paid 240
Net income 400

Additional Information:

Dividends 220
Addition to retained earnings 180
Required:
1. Identify if it is a sources or uses of cash.
2. Prepare a summary of sources and uses of cash.
3. Prepare s Cash Flow Statements for 2019.

ISPLAKITENGTENGKS COMPANY
BALANCE SHEET
2017 and 2018
 2017 2018
Assets

Current Assets
Cash 270 300
Accounts Receivable 330 270
Prepaid Supplies 600 540
Merchandise Inventory 510 360
Net Property, plant and equipment 510 450
Total Assets 2,220 1,920

LIABILITIES AND OWNER’S EQUITY

Current Liabilities
Accounts Payable 300 480
Notes Payable 480 300
Long-term Debt 480 600
Common stock 300 420
Retained Earnings 660 120
Total Liabilities and Owner’s Equity 2,220 1,920

ISPLAKITENGTENGKS COMPANY
2018 INCOME STATEMENT

Sales 4,800
Cost of Good Sold 1,800
Depreciation 600
Earnings before interest and taxes 2,400
Interest Paid 480
Taxable income 1,920
Taxes paid 720
Net income 1,200

Additional Information:

Dividends 660
Addition to retained earnings 540

Required:
Required:
1. Identify if it is a sources or uses of cash.
2. Prepare a summary of sources and uses of cash.
3. Prepare s Cash Flow Statements for 2018.