1. Use the below information to answer the following questions:
|
2007 |
2008 |
| sales |
$2870 |
$3080 |
| depreciation |
413 |
413 |
| cost of goods sold |
987 |
1121 |
| other expenses |
238 |
196 |
| interest |
192 |
221 |
| cash |
1505 |
1539 |
| accounts receivables |
1992 |
2244 |
| short-term notes payable |
291 |
273 |
| long term debt |
5040 |
5880 |
| net fixed assets |
12,621 |
12,922 |
| accounts payable |
1581 |
1533 |
| tax rate |
34% |
34% |
| inventory |
3542 |
3640 |
| *payout ratio |
52% |
52% |
*Dividends = payout ratio x net income.
A. Create the Income Statements for 2007 and 2008 (including dividends paid and retained earnings).
B. Create the Balance Sheets for 2007 & 2008.
C. Create the statement of Cash Flows for 2008.
D. What is the CFFA for 2008?
Based on Proverbs 14:2, Proverbs 1:5, Proverbs 3:3-4, and Proverbs 10:9. What role does honesty play in business? What are the consequences of unethical business practices and behavior?