Fill in the blanks in the income statement and balance sheet and show that Cash Flow...

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Finance

Fill in the blanks in the income statement and balance sheet andshow that Cash Flow Identity holds.
If the company sold $300 worth of fixed assets, how much fixedassets were sold?
Assuming that the company had eitherseasoned equity offering or repurchase, which one did the companyhave?
If the company borrowed $55 in 2018,how much of the Long-term debt was paid in 2018?
BALANCE SHEET - 2017 & 2018
ASSETS
LIABILITIES and OWNERS EQUITY
2017
2018
2017
2018
Current Assets
Current Liabilities
Cash
200
210
Accounts Payable
180
185
A/R
300
290
Notes Payable
230
195
Inventory
250
300
Total Current Liabilities
410
380
Total Current Assets
750
800
Long-Term Debt
245
……
Fixed Assets
Fixed Assets
500
…..
Owner's Equity
595
715
Common Stock
295
335
Retained Earnings
300
380
TOTAL ASSETS
1250
……
TOTAL LIABILITIES and OWNERS EQUITY
1250
1350

INCOME STATEMENT - 2018
Sales
4500
Cost
2950
Depreciation
300
Earnings before Interest and Tax (EBIT)
1250
Interest
350
Earnings before Tax (EBT) - Taxable Income
…….
Tax (30%)
…….
Net Income
…….
Dividend
…….
Add. To Retained Earnings
…….

Answer & Explanation Solved by verified expert

4.1 Ratings (761 Votes)

Answer a 2018 Total Assets Total Liabilities and Owners Equity Total Assets 1350 Fixed Assets Total Assets Current Assets Fixed Assets 1350 800 Fixed Assets 550 Total Liabilities and Owners Equity Total Liabilities Owners Equity 1350 Total Liabilities 715 Total See Answer

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Transcribed Image Text

Fill in the blanks in the income statement and balance sheet andshow that Cash Flow Identity holds.If the company sold $300 worth of fixed assets, how much fixedassets were sold?Assuming that the company had eitherseasoned equity offering or repurchase, which one did the companyhave?If the company borrowed $55 in 2018,how much of the Long-term debt was paid in 2018?BALANCE SHEET - 2017 & 2018ASSETSLIABILITIES and OWNERS EQUITY2017201820172018Current AssetsCurrent LiabilitiesCash200210Accounts Payable180185A/R300290Notes Payable230195Inventory250300Total Current Liabilities410380Total Current Assets750800Long-Term Debt245……Fixed AssetsFixed Assets500…..Owner's Equity595715Common Stock295335Retained Earnings300380TOTAL ASSETS1250……TOTAL LIABILITIES and OWNERS EQUITY12501350INCOME STATEMENT - 2018Sales4500Cost2950Depreciation300Earnings before Interest and Tax (EBIT)1250Interest350Earnings before Tax (EBT) - Taxable Income…….Tax (30%)…….Net Income…….Dividend…….Add. To Retained Earnings…….

BALANCE SHEET - 2017 & 2018
ASSETS			LIABILITIES and OWNERS EQUITY
	2017	2018		2017	2018
Current Assets			Current Liabilities
Cash	200	210	Accounts Payable	180	185
A/R	300	290	Notes Payable	230	195
Inventory	250	300	Total Current Liabilities	410	380
Total Current Assets	750	800
			Long-Term Debt	245	……
Fixed Assets
Fixed Assets	500	…..	Owner's Equity	595	715
			Common Stock	295	335
			Retained Earnings	300	380

TOTAL ASSETS	1250	……	TOTAL LIABILITIES and OWNERS EQUITY	1250	1350

INCOME STATEMENT - 2018
Sales		4500
Cost		2950
Depreciation		300
Earnings before Interest and Tax (EBIT)		1250
Interest		350
Earnings before Tax (EBT) - Taxable Income		…….
Tax (30%)		…….
Net Income		…….
Dividend		…….
Add. To Retained Earnings		…….