Math Is Fun Forum

mom

Member

Registered: 2012-04-25

Posts: 94

Financial Statements help - please

This isn't straight math so I am just hoping that I can get some help.
Use the following
assume the tax rate is 34 percent
Sales - 2010 - 11,573; 2011 - 12,936
Depreciation - 2010 - 1,661; 2011 - 1,736
Cost of goods sold - 2010 - 3,979; 2011 - 4,707
other expenses - 2010 - 946; 2011 - 824
interest - 2010 - 776; 2011 - 926
cash - 2010 - 6,067; 2011 - 6,466
accounts receivable - 2010 - 8,034; 2011 - 9,427
short term notes payable - 2010 - 1,171; 2011 - 1,147
long term debt - 2010 - 20320; 2011 - 24,696
net fixed assets - 2010 - 50,888; 2011 - 54,273
accounts payable - 2010 - 4,384; 2011 - 4,644
inventory - 2010 - 14,283; 2011 - 15,288
dividends - 2010 - 1,411; 2011 - 1,618
Draw up an income statement and balance sheet for this company for 2010 and 2011
For 2011, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.
I tried this and am trying to attach what I have done. I think that my income statement and balance sheet are incorrect and I am completely lost on the cash flow. Please help.
It is excel and not an image so I don't think that I can up load them. Ugh!!!

Taco Swell Incorporated                               
Balance Sheet                               
                               
    2010        2011            2010        2011
Current assets                    Current liabilities           
cash    $6,067.00        $6,466.00        Accounts payable    $4,384.00        $4,644.00
Accounts receivable    $8,034.00        $9,427.00        Notes payable    $1,171.00        $1,147.00
Inventory    $14,283.00        $15,288.00        Total Current Liabilities    $5,555.00        $5,791.00
Total    $28,384.00        $31,181.00                   
Fixed assets                               
Net fixed assets    $50,888.00        $54,273.00        Long-term debt    $20,320.00        $24,696.00
                    Owners Equity    $53,397.00        $54,967.00
                    Total Liabilities           
Total assets    $79,272.00        $85,454.00        and Owners Equity    $79,272.00        $85,454.00

Taco Swell Incorporated           
Income Statement           
           
    2010        2011
Sales    $11,573.00        $12,936.00
Cost of goods sold    $3,979.00        $4,707.00
Other expenses    $946.00        $824.00
Depreciation    $1,661.00        $1,736.00
Earnings before interest and taxes    $4,987.00        $5,669.00
Interest paid    $776.00        $926.00
Taxable Income    $4,211.00        $4,743.00
Taxes 34%    $1,431.74        $1,612.62
Net Income    $2,779.26        $3,130.38
           
Dividends    $1,411.00        $1,618.00
Addition to retained earnings    $1,368.26        $1,512.38

Taco Swell Incorporated           
Cash Flow           
    2010        2011
           
Earnings before interest and taxes    $4,987.00        $5,669.00
plus Depreciation    $1,661.00        $1,736.00
minus taxes    1431.74        $1,612.62
Operating Cash Flow    $5,216.26        $5,792.38
           
Ending net fixed assets    $50,888.00        $54,273.00
minus beginning net fixed assets    $0.00        $50,888.00
plus depreciation    $1,661.00        $1,736.00
Net Capital Spending    $52,549.00        $5,121.00
           
Ending NWC    $54,210.00        $31,181.00
minus beginning NWC    $5,555.00        $5,791.00
Change in NWC    $48,655.00        $25,390.00
           
Operating cash flow    $5,216.26        $5,792.38
minus net capital spending    $52,549.00        $5,121.00
minus change in NWC    $48,655.00        $25,390.00
Cash flow from assets    -$95,987.74        -$24,718.62
           
Interest paid    $776.00        $926.00
minus net borrowing    $20,320.00        $4,376.00
Cash flow to creditors    -$19,544.00        -$3,450.00
           
Dividends paid    $1,411.00        $1,618.00
minus new equity raised           
Cash flow to stockholders

Bob

Administrator

Registered: 2010-06-20

Posts: 10,620

Re: Financial Statements help - please

see pm

Bob

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Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob

mom

Member

Registered: 2012-04-25

Posts: 94

Re: Financial Statements help - please

what is pm?

Bob

Administrator

Registered: 2010-06-20

Posts: 10,620

Re: Financial Statements help - please

Ok.  plan B coming up.

Bob

---

Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob

Bob

Administrator

Registered: 2010-06-20

Posts: 10,620

Re: Financial Statements help - please

hi mom

lots of questions:

what do these mean?

EBIT
OCF
NWC

and then, what exactly do you want help with?

Draw up an income statement and balance sheet for this company for 2010 and 2011
For 2011, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.

Is this an study exercise or are you managing accounts for an actual company?

If you're asking "Have I set it out properly?" then I'm out of my depth.  But I can post a picture of what it looks like, in the hope someone else knows this kind of thing. 

Bob

---

Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob

Tabu918

Guest

Re: Financial Statements help - please

Hi guys. I'm having trouble with the same exact problem for my class. I'm horrible at this type of math. It drags because if you get the income statement wrong or the balance sheet is off, then everything is a mess. One little thing can just throw it all off, I've learned this the hard way but run into this problem still.

In addition to doing the income statement and balance sheet, my professor wants us to also calculate (showing work and I wanna see work too so I know how on earth to do this stuff) operating cash flows.

Then she wants the current ration, quick ration, accounts receivable turnover, inventory turnover, debt to equity, profit margin, and return on equity.

If any of you math/accounting/princ. of finance superstars can help me understand this stuff, email me at [email address removed by moderator.  Reply here please.  And Tabu918 ... if you become a member,  private emailing is a possibility]

Thanks a bunch

bobbym

bumpkin

From: Bumpkinland

Registered: 2009-04-12

Posts: 109,606

Re: Financial Statements help - please

Hi Tabu918;

Welcome. Why not post your problems and who knows, someone might be able to help.

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In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.