Scribd
Upload
146 views4 pages

Cash Flow Statement and Financial Ratio Assign

The document provides the balance sheets as of December 31, 1979 and 1980 and the income statement for Electronics Limited for 1980. It shows a decrease in cash from $74,000 to $37,000 from 1979 to 1980, a decrease in retained earnings from $231,000 to $211,000, and a net loss of $4,000 for 1980. It also provides additional details on the sale of a machine during the year.

Uploaded by

Christian Tan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
146 views4 pages

Cash Flow Statement and Financial Ratio Assign

The document provides the balance sheets as of December 31, 1979 and 1980 and the income statement for Electronics Limited for 1980. It shows a decrease in cash from $74,000 to $37,000 from 1979 to 1980, a decrease in retained earnings from $231,000 to $211,000, and a net loss of $4,000 for 1980. It also provides additional details on the sale of a machine during the year.

Uploaded by

Christian Tan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Given below are the balance sheets as of Dec 31, 1979 and Dec 31, 1980 as well as the

income
statement.

Electronics Limited
Comparative Balance Sheets (in ‘000)
Dec 31, 1979 Dec 31, 1980
Cash 74,000 37,000
Accounts Receivable 54,000 47,000
Inventories 312,000 277,000
Prepaid Expenses 6,000 4,000
Land 60,000 60,000
Patents, Net 55,000 65,000
Buildings and Equipment 420,000 480,000
Less: Acc. Depreciation (105,000) (120,000)
Total Assets 876,000 850,000

Accounts Payable 58,000 94,000


Notes Payable 28,000 8,000
Income Tax Accrued 86,000 12,000
Social Security Tax 3,000 5,000
Accrued
Long Term Debt 220,000 60,000
Capital 250,000 460,000
Retained Earnings 231,000 211,000
Total Liabilities & Equities 876,000 850,000

Electronics Limited
Income Statement (in ‘000)
Net Sales 1,970,000
Less: CGS (1,480,000)
Gross Profit 490,000
Less: Operating Expenses (500,000)
Net Loss from Operations (10,000)
Add: Other Revenues 7,000
Less: Other Losses (Net Loss on Machine Sale) (1,000)
Net Loss (4,000)

Retained Earnings, Beginning 231,000


Less: Dividend Paid (16,000)
Retained Earnings, Ending 211,000
During the year, a specialized machine that originally cost 15M was sold. The accumulated
depreciation of this machine at the time of the sale was 8M. The machine was sold for 6M and
full payment was received in cash. Yearly amortization of intangible asset stands at 6M.
Do a funds flow statement on cash basis:
OPERATING ACTIVITIES
Sources of Cash Amount Uses of Cash Amount

NET CASH GENERATED BY OPERATING ACTIVITIES =


INVESTING ACTIVITIES
Sources of Cash Amount Uses of Cash Amount

NET CASH GENERATED BY INVESTING ACTIVITIES =


FINANCING ACTIVITIES
Sources of Cash Amount Uses of Cash Amount

NET CASH GENERATED BY FINANCING ACTIVITIES =


NET CHANGE IN CASH =

You might also like