Cash Flow Statement
Create a Cash Flow Statement for Global Corporation for 2007. The Balance Sheet and Income Statements are provided below. Supplemental information:
• Additions to PP&E for 2007 is $33.4 million
• Dividends for 2007 were $1 million
• Ignore Retained Earnings Calculation: Net Income and Dividends are provided.
o No change in common stock
o S/E increased $1 million = ΔR/E (NI-Div)
Table: Global Corporation Balance Sheet for 2007 and 2006
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GLOBAL CORPORATION
Balance Sheet
Year ended December 31 (in $ millions)
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Assets
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2007
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2006
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Liabilities and Stockholders' Equity
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2007
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2006
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Current Assets
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Current Liabilities
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|
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Cash
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23.2
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20.5
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Accounts payable
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29.2
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26.5
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Accounts receivable
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18.5
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13.2
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Notes payable/short-term debt
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5.5
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3.2
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Inventories
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15.3
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14.3
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|
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Total current assets
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57.0
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48.0
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Total current liabilities
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34.7
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29.7
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Long-Term Assets
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Long-Term Liabilities
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Net property, plant,
and equipment
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113.1
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80.9
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Long-term debt
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113.2
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78.0
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Total long-term assets
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113.1
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80.9
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Total long-term liabilities
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113.2
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78.0
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Total Liabilities
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147.9
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107.7
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Stockholders' Equity
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22.2
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21.2
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Total Assets
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170.1
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128.9
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Total Liabilities and Stockholders' Equity
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170.1
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128.9
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Table: Global Corporation Income Statement Sheet for 2007 and 2006
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GLOBAL CORPORATION
Income Statement
Year ended December 31 (in $ millions)
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2007
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2006
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Total sales
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186.7
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176.1
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Cost of sales
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-153.4
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-147.3
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Gross Profit
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33.3
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28.8
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Selling, general, and administrative expenses
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-13.5
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-13
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Research and development
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-8.2
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-7.6
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Depreciation and amortization
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-1.2
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-1.1
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Operating Income
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10.4
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7.1
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Other income
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-
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-
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Earnings Before Interest and Taxes (EBIT)
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10.4
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7.1
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Interest income (expense)
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-7.7
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-4.6
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Pretax Income
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2.7
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2.5
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Taxes
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-0.7
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-0.6
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Net Income
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2.0
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1.9
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Earnings per share:
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$0.56
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$0.53
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Diluted earnings per share:
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$0.53
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$0.50
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