Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Using the income statement and balance sheet below, can you please help me with the following problems?

Thank you!

a. find out the amount of dividends Firm A and Firm B paid using the information given.
b. Prepare a statement of cash flows for each firm using the indirect method.
c. Analyze the difference in the two firms.

---

The following income statement and balance sheet information are available for two firms, firm A and Firm B.

Income Statement for Year Ended December 31, 2012
Firm A Firm B
Sales $ 1,000,000 $ 1,000,000
Cost of goods sold $ 700,000 $ 700,000
Gross profit $ 300,000 $ 300,000
Other expenses
Selling and administrative $ 120,000 $ 115,000
Depreciatin $ 10,000 $ 30,000
Interest expense $ 20,000 $ 5,000
Earnings before taxes $ 150,000 $ 150,000
Income tax expense $ 75,000 $ 75,000
Net Income $ 75,000 $ 75,000

Changes in Balance Sheet Accounts December 31, 2011, to December 31, 2012

Firm A Firm B
Cash and cash equivalents $ 0 $+10,000
Accounts receivable +40,000 +5,000
Inventory +40,000 -10,000
Property, plant, and equipment +20,000 +70,000
Less accumulated depreciation (+10,000) (+30,000)
Total Assets $+90,000 $+45,000
Accounts payable $-20,000 $ -5,000
Notes payable (current) +17,000 +2,000
Long-term debt +20,000 -10,000
Deferred taxes (noncurrent) +3,000 +18,000
Capital, stock ---------- -- ---------
Retained earnings +70,000 +40,000
Total Liabilities and Equity $+90,000 $+45,000

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924402

Have any Question? 


Related Questions in Basic Finance

1 banking services list and describe some of the banking

1. Banking Services. List and describe some of the banking services offered by financial institutions. 2. Debit Versus Credit Card. What is the difference between a debit card and a credit card? 3. Special Services. Name ...

Briefly describe each of the following disbursement

Briefly describe each of the following disbursement products/methods: a. Zero-balance accounts (ZBAs) b. Controlled disbursement c. Positive pay How does a ZBA relate to the firm's target cash balance?

Go to wwwfdicgovconsumersconsumerinformationfdiciornhtml

Go to www.fdic.gov/consumers/consumer/information/fdiciorn.html and answer the following questions: a. List at least three types of bank accounts that are insured by the FDIC. Are money market deposit accounts insured an ...

This week find the statement of cash flow for a firm of

This week, find the statement of cash flow for a firm of your choosing and report the cash flow ratios. Please report and discuss 3 years of ratios for the three ratios related to debt and dividends but only the current ...

1 describe the foreign exchange market discuss why it

1. Describe the foreign exchange market. Discuss why it exists and why it is necessary for international trade and commerce. 2. What is an exchange rate and how does it relate to the bid and the ask spread? 3. Compare an ...

Imagine that your town or city has increased its nighttime

Imagine that your town or city has increased its nighttime police patrols to reduce crime. Design two quasi-experiments to determine whether this intervention has been effective, one that uses some variation of a nonequi ...

1 discuss the differences in the loan application for a

1. Discuss the differences in the loan application for a commercial loan and a home loan. 2. Describe the risks involved in commercial real estate investment and financing. 3. What type of work is covered in a land devel ...

1 what ratios are used to indicate profitability for banks2

1. What ratios are used to indicate profitability for banks? 2. Why are banks concerned about the percentage of earning assets to total assets? 3. What does the loan loss coverage ratio measure? 4. What type of ratio is ...

At the first meeting of an american history class for new

At the first meeting of an American History class for new freshmen, the professor identifies 10 students who appear to be the most anxious individuals in the class. Based on their observed behaviors, the professor rates ...

What is meant by the term prevailing torque what do we

What is meant by the term prevailing torque? What do we mean by the terms initial preload and residual preload? Why do they differ? What limits the usefulness of the so-called, long-form torque-preload equation? Explain ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro