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Comprehensive Problem 2 - St of Cash Flows and Ratios Algo

F. Luchessi Inc.				F. Luchessi Inc.
Income Statement				Comparative Balance Sheets
For years ended December 31, 2017 and 2018				December 31, 2018 and 2017
					2018	2017	Change
	2018	2017		Current assets:
Sales (all on credit)	$619,000	$588,000		Cash	$62,730	$32,100	$30,630
Cost of goods sold	(345,000)	(283,000)		Accounts receivable (net)	43,000	36,000	7,000
Gross margin	274,000	305,000		Inventory	48,000	46,000	2,000
				Prepaid expenses	1,600	3,500	-1,900
Depreciation expense	37,000	52,000		Other current assets	2,230	3,400	-1,170
Other operating expenses	132,000	110,000		Total current assets	157,560	121,000	36,560
Total operating expenses	169,000	162,000
Operating income	105,000	143,000		Long-term Investments	86,000	60,000	26,000
Other income (expenses)				Plant assets	312,000	261,000	51,000
Interest expense	(5,000)	(3,700)		Less: accumulated depreciation	(78,600)	(52,000)	26,600
Gain on sale of investments	6,300	4,400		Total plant assets	233,400	209,000	24,400
Loss on sale of plant assets	(3,500)	(4,200)		Total assets	476,960	390,000	86,960
Total other income (expenses)	(14,800)	(3,500)
				Current liabilities:
Income before income taxes	102,800	139,500		Accounts payable	$29,400	$30,000	$-600
Income taxes expense	(30,840)	(41,850)		Accrued liabilities	7,200	6,000	1,200
Net income	$71,960	$97,650		Income taxes payable	2,400	9,000	-6,600
				Total current liabilities	39,000	45,000	-6,000
F. Luchessi Inc.				Long term liabilities:
Statement of Retained Earnings				Notes Payable	249,000	185,000	64,000
For the year ended December 31, 2018				Total liabilities	288,000	230,000	58,000
	2018	2017
Ret. earnings, Jan. 1	$35,000	$0		Stockholders' equity
Add: net income	71,960	97,650		Common stock, $5 par value	100,000	100,000	0
Deduct: Dividends	(43,000)	(62,650)		Additional paid-in capital	25,000	25,000	0
Increase in retained earnings	28,960	35,000		Retained earnings	63,960	35,000	28,960
Ret. earnings, Dec. 31	$63,960	$35,000		Total stockholders equity	188,960	160,000	28,960
				Total liabilities and stockholders equity	$476,960	$390,000	$86,960
Other information:
Shares of common stock outstanding	20,000	20,000
Earnings per share	$3.6	$4.88
Dividends per share	$2.15	$3.13
Market price per share, common stock	$16	$13

Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Choose Numerator Enter Numerator Value Enter Denominator Value Choose Denominator Ratio Current ratio Acid-test ratio Inventory turnover Days' sales in inventory Accounts receivable turnover Days' sales in receivables Total asset turnover ... Debt-to-eauitv.ratio, Days' sales in inventory Accounts receivable turnover Days' sales in receivables Total asset turnover Debt-to-equity ratio Profit margin Return on total assets Return on common stockholders' equity Price/earnings ratio (P/E) Dividend yield

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