Analyze the beginning and ending cash position from Company A's statement of cash flows from year 2016 on each of the following:
• cash flow from operating activities
• cash flow from investing activities
• cash flow from financing activities
| Balance Sheet 2016 |
Company A |
Company B |
Company A % of Total Assets |
Company B% of Total Assets |
| Cash |
$33,075 |
$38,694 |
8.29% |
21.30% |
| Accounts Receivable |
$57,800 |
$17,441 |
14.49% |
9.60% |
| Inventory |
$33,272 |
$25,351 |
8.34% |
13.96% |
| Total Current Assets |
$124,147 |
$81,486 |
31.13% |
44.86% |
| |
|
|
|
|
| Plant and equipment |
$450,920 |
$186,600 |
|
|
| Accumulated Depreciation |
($176,261) |
($86,427) |
|
|
| Total Fixed Assets |
$274,659 |
$100,173 |
68.87% |
55.14% |
| |
|
|
|
|
| Total Assets |
$398,806 |
$181,660 |
100.00% |
100.00% |
| |
|
|
Company A % of Total Asset (or Total liabilities & SO equity |
Company B % of Total Asset (or Total liabilities & SO equity |
| Accounts Payable |
$13,947 |
$12,000 |
3.50% |
6.61% |
| Current Debt |
$30,000 |
$34,827 |
7.52% |
19.17% |
| Long Term Debt |
$145,509 |
$43,121 |
36.49% |
23.74% |
| Total Liabilities |
$189,456 |
$89,948 |
47.51% |
49.51% |
| |
|
|
|
|
| Common Stock |
$29,215 |
$41,344 |
7.33% |
22.76% |
| Retained Earnings |
$180,135 |
$50,367 |
45.17% |
27.73% |
| Total Equity |
$209,349 |
$91,712 |
52.49% |
50.49% |
| Total Liabilities & Owners' Equity |
$398,806 |
$181,660 |
100.00% |
100.00% |
| |
|
|
|
|
| Income Statement 2016 |
Company A |
Company B |
Company A % of net sales |
Company A % of net sales |
| Sales |
$351,618 |
$212,203 |
100.00% |
100.00% |
| Variable Costs (Labor, Material, Carry) |
$167,778 |
$146,012 |
47.72% |
68.81% |
| Depreciation |
$30,061 |
$12,440 |
8.55% |
5.86% |
| SGA (R&D, Promo, Sales, Admin) |
$36,637 |
$23,110 |
10.42% |
10.89% |
| Other (Fees, Writeoffs, TQM, Bonuses) |
$1,550 |
$4,643 |
0.44% |
2.19% |
| EBIT |
$115,591 |
$25,998 |
32.87% |
12.25% |
| Interest (Short term, Long term) |
$23,200 |
$10,481 |
6.60% |
4.94% |
| Taxes |
$32,337 |
$5,431 |
9.20% |
2.56% |
| Profit Sharing |
$1,201 |
$202 |
0.34% |
0.10% |
| Net Profit |
$58,853 |
$9,884 |
16.74% |
4.66% |
| |
|
|
|
|
| |
|
|
|
|
| Cash Flow Statement 2015 |
Company A |
|
Cash Flow Statement 2016 |
Company A |
| Cash flows from operating activities |
|
|
Cash flows from operating activities |
|
| Net Income (Loss) |
$39,968 |
|
Net Income (Loss) |
$58,853 |
| Adjustment for non-cash items: |
|
|
Adjustment for non-cash items: |
|
| Depreciation |
$25,613 |
|
Depreciation |
$30,061 |
| Extraordinary gains/losses/writeoffs |
$0 |
|
Extraordinary gains/losses/writeoffs |
$0 |
| Changes in current assets and liabilities: |
|
|
Changes in current assets and liabilities: |
|
| Accounts payable |
($4,540) |
|
Accounts payable |
$1,338 |
| Inventory |
$10,977 |
|
Inventory |
($5,907) |
| Accounts receivable |
$431 |
|
Accounts receivable |
($6,201) |
| Net cash from operations |
$72,448 |
|
Net cash from operations |
$78,145 |
| |
|
|
|
|
| Cash flows from investing activities |
|
|
Cash flows from investing activities |
|
| Plant improvements (net) |
($63,600) |
|
Plant improvements (net) |
($66,720) |
| Cash flows from financing activities |
|
|
Cash flows from financing activities |
|
| Dividends paid |
($22,107) |
|
Dividends paid |
($16,580) |
| Sales of common stock |
$0 |
|
Sales of common stock |
$0 |
| Purchase of common stock |
$0 |
|
Purchase of common stock |
$0 |
| Cash from long term debt issued |
$23,000 |
|
Cash from long term debt issued |
$7,000 |
| Early retirement of long term debt |
$0 |
|
Early retirement of long term debt |
$0 |
| Retirement of current debt |
($20,850) |
|
Retirement of current debt |
$0 |
| Cash from current debt borrowing |
$0 |
|
Cash from current debt borrowing |
$30,000 |
| Cash from emergency loan |
$0 |
|
Cash from emergency loan |
$0 |
| |
| |
| Net cash from financing activities |
($19,957) |
|
Net cash from financing activities |
$20,420 |
| |
|
|
|
|
| Net change in cash position |
($11,109) |
|
Net change in cash position |
$31,844 |
| Cash at Beginning of Year |
$12,339 |
|
Cash at Beginning of Year |
$1,231 |
| Cash at End of Year |
$1,231 |
|
Cash at End of Year |
$33,075 |