Assignment:
Consider the following financial information for Sunny Fruit Co.
Balance Sheet, December 31
(Figures in millions of dollars)
LIABILITIES AND LATEST PREVIOUS STOCKHOLDERS' LATEST PREVIOUS
ASSETS YEAR YEAR EQUITY YEAR YEAR
Current assets $400 $200 Current liabilities $150 $195
Net fixed assets 600 400 Long-term debt 500 100
Partial Income Statement,
latest year ending December 31
(Figures in millions of dollars)
Sales $900
Cost of goods sold 200
Selling and administrative expenses 200
Depreciation 100
Interest expense 50
Q1. What is stockholders' equity in the previous and latest years?
Q2. Assume a tax rate of 40%. What are income taxes paid and net income after taxes for the latest year?
Q3. The company did not issue or repurchase any stock during the latest year. What dividend was paid?
Q4. Given the change in net fixed assets and depreciation expense, what is the amount of fixed assets purchased during the latest year?
Q5. What is net working capital in the previous and latest years?
Q6. What is cash provided (used) by operations during the latest year (the increase in working capital is a use of cash)? What is cash provided (used) by investing activities?
Q7. What is cash provided (used) by financing activities.