90.2K

Verified Solution

Link Copied!

create a cash based income statement that could be used for a corporate credit review

Income Statement Net Sales Less: Cost of Goods Sold Gross Margin Selling Expenses G&A Expenses Less: Total Op. Expenses Less: Depreciation Operating Profit Interest Income Interest Expense Net Interest Income (Expense) Net Profit Before Taxes Less: Taxes Net Income 320,000,000 162,000,000 158,000,000 100,000,000 20,000000 120,000,000 11,000,000 27,000,000 10,000,000 18,500,000 -8,500,000 18,500,000 6,290,000 12,210,000 Earnings Available to Common Dividends Paid (60% of EAC) Addition to Retained Earnings Earnings Per Share 12,210,000 7,326,000 4,884,000 $6.11 Balance Sheet Current Year Assets Cash and Marketable Securities Accounts Receivable Inventory Pre-Paid Expenses Total Current Assets Gross Fixed Assets Less: Accum. Depreciation Net Fixed Assets Total Assets Prior Year Change 3,000,000 57,000,000 106,000,000 8,400,000 174,400,000 248,000,000 100,000,000 148,000,000 322,400,000 6,200,000 44,000,000 99,000,000 11,000,000 160,200,000 274,000,000 80,000,000 154,000,000 314,200,000 (3,200,000) 13,000,000 7,000,000 (2,600,000) 14,200,000 (26,000,000) (20,000,000) (6,000,000) 8,200,000 Change Liabilities Accounts Payable Short-Term Debt Total Current Liabilities Long-Term Debt (896) Total Liabilities Common Stock ($1 Par) Paid-In Capital Retained Earnings Total Equity Total Liabilities and Equity Current Year Prior Year 8,716,000 102,000,000 110,716,000 115,000,000 225,716,000 2,000,000 65,000,000 29,684,000 96,684,000 322,400,000 6,400,000 105,000,000 111,400,000 111,000,000 222,400,000 2,000,000 65,000,000 24,800,000 91,800,000 314,200,000 2,316,000 (3,000,000) (684,000) 4,000,000 3,316,000 4,884,000 4,884,000 8,200,000

Answer & Explanation Solved by verified expert

See Answer