Assignment
Given the following statements, prepare a cash flow statement & complete the Balance Sheet as of 12/31/98.
• Income after tax for the year ended 12/31/99 was $100M; although the company elected to retain only $70M of this amount
• Company purchased $250M in depreciable assets during the '99 year
The accumulated depreciation amount will change by $75M ('99 vs. '98)
• Company issued $150M in bonds during the '99 year
• Company issued $130M in Common stock during the '99 year
• Company paid down $50M on Notes Payable during the '99 year
• Company owes $125M more to their vendors in '99 than in '98
• The Company has $250M more money owed to them in'99 than in '98
• The Company has a $150M less in inventory in '99 than in '98
• The Company elected to prepay an additional $50M in rent (‘99 vs. '98)
|
Balance Sheet
|
|
|
12/31/98
|
12/31/99
|
|
Current Assets:
|
|
|
Cash
|
285,000
|
|
Marketable Securities
|
35,000
|
|
A/R
|
475,000
|
|
Inventory
|
150,000
|
|
Prepaid Expenses
|
75,000
|
|
Total Current Assets
|
1,020,000
|
|
Investments
|
175,000
|
|
Plant & Equipment
|
945,000
|
|
less Accumulated Depreciation
|
325,000
|
|
Net Plant & Equipment
|
620,000
|
|
Total Assets
|
1,815,000
|
|
Current Liabilities
|
|
|
A/P
|
325,000
|
|
Notes Payable
|
325,000
|
|
Accrued Expenses
|
50,000
|
|
Total Current Liabilities
|
700,000
|
|
Bonds Payable
|
475,000
|
|
Total Liabilities
|
1,175,000
|
|
Stockholders Equity
|
|
|
Preferred Stock
|
100,000
|
|
Common Stock
|
140,000
|
|
Capital in excess of Par
|
150,000
|
|
Retained Earnings
|
250,000
|
|
Total Stockholders Equity
|
640,000
|
|
Total Liabilties & Stockholders Equity
|
1,815,000
|