Question - Below is the income statement and balance sheet of Closely Held Corporation. From this information prepare a statement of cash flows for the year ended September 30, 2005.
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Income Statement for year ended September 30, (in thousands)
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2004
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2005
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Revenues
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$500,000
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$512,000
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Cost of Sales
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(395,000)
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(404,480)
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Gross Margin
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105,000
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107,520
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Selling and Administrative
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(60,000)
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(61,440)
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Income before interest and taxes
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45,000
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46,080
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Interest expense
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(9,900)
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(12,320)
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Income before income taxes
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35,100
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33,760
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Income tax
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(12,812)
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(12,322)
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Net income
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$ 22,289
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$ 21,438
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Balance Sheet as of September 30, (in thousands)
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2004
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2005
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Change
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Assets
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Current Assets
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Cash and equivalents
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$ 10,000
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$ 10,240
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$ 240
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Accounts receivable
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40,000
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48,640
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8,640
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Inventories
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39,500
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56,627
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17,127
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Prepaid expenses
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10,000
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11,000
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1,000
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Total Current Assets
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99,500
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126,507
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27,007
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Property, plant, and equipment
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390,000
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411,000
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21,000
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Accumulated depreciation
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(233,000)
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(250,000)
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(17,000)
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P, P & E net
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157,000
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161,000
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4,000
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Other Assets, net amortization
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27,000
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26,000
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(1,000)
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Total Assets
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$283,500
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$313,507
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$ 30,007
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Liabilities and Shareholders' Equity
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Current Liabilities
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Current portion of long-term debt
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$ 12,000
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$ 13,000
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$ 1,000
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Notes payable
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30,000
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31,000
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1,000
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Accounts payable
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39,500
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42,450
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2,950
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Accrued liabilities
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21,569
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18,000
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(3,569)
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Income taxes payable
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8,900
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9,500
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600
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Total Current Liabilities
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111,969
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113,950
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1,981
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Long-term debt
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87,000
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99,000
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12,000
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Non-current deferred income tax
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10,000
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9,070
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(30)
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Other non-current liabilities
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4,340
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5,000
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660
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Shareholders' Equity
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Common stock - Class A
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3,000
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3,500
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500
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Capital in excess of par
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21,000
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26,000
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5,000
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Retained earnings
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46,191
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56,087
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9,896
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Total Shareholders' Equity
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70,191
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85,587
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15,396
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Total Liabilities and Equity
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$283,500
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$313,507
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$ 30,007
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