16. Profit12,5919,78613,324ExpensesSalaries and
Benefits4,5104,5104,510Rent and
Overhead1,8041,8041,804Depreciation and
Amortization2,8142,8062,806Interest900900900Total
Expenses10,02810,02010,020Earnings Before
Tax2,563(234)3,305Taxes718(65)925Net
Earnings1,845(168)2,379201720182019Balance
SheetAssetsCash62,26561,70844,319Acco unts
Receivable1,3801,4191,460Inventory3,0783,7993,257Property
and Equipment37,41337,40737,402Total
Assets104,136104,33486,438LiabilitiesAccounts
Payable1,5601,9261,651Debt30,00030,00010,000Total
Liabilities31,56031,92611,651Shareholders' EquityEquity
Capital33,68533,68533,685Retained
Earnings38,89238,72341,103Shareholders'
Equity72,57772,40874,788Total Liabilities and Shareholders'
Equity104,137104,33486,439201720182019Cash Flow
StatementOperating Cash FlowNet
Earnings1,845(168)2,379Plus: Depreciation and
Amortization2,8142,8062,806Less: Changes in Working
Capital(10,312)395(227)Cash from
Operations14,9712,2425,412Investing Cash FlowInvestments in
Property and Equipment2,7062,8002,800Cash from
Investing2,7062,8002,800Financing Cash FlowIssuance
(repayment) of Debt--(20,000)Issuance (repayment) of Equity---
Cash from Financing--(20,000)Net Increase (decrease) in
Cash12,265(558)(17,388)Opening Cash
Balance50,00062,26561,708Closing Cash
Balance62,26561,70844,319Supporting SchedulesWorking
Capital ScheduleAccounts
Receivable1,3801,4191,460Inventory3,0783,7993,257Accounts
Payable1,5601,9261,651Net Working Capital
(NWC)2,8983,2933,066Change in
NWC(10,312)395(227)Depreciation SchedulePPE
Opening37,52137,41337,407Plus Capex2,7062,8002,800Less
Depreciation2,8142,8062,806PPE
17. Closing37,41337,40737,402Debt and Interest ScheduleDebt
Opening30,00030,00030,000Issuance (repayment)--
(20,000)Debt Closing30,00030,00010,000Interest
Expense900900900
COMPANY A Three Year DataA_CO_FINLearner Copy Rev
3/14/21COMPANY A Illlustrative Data for Educational
Purposes All values shown are in
thousands.201720182019Income
StatementRevenue27,98128,78429,610Cost of Goods Sold
(COGS)15,38918,99716,285Gross
Profit12,5919,78613,324ExpensesSalaries and
Benefits4,5104,5104,510Rent and
Overhead1,8041,8041,804Depreciation and
Amortization2,8142,8062,806Interest900900900Total
Expenses10,02810,02010,020Earnings Before
Tax2,563(234)3,305Taxes718(65)925Net
Earnings1,845(168)2,379201720182019Balance
SheetAssetsCash62,26561,70844,319Accounts
Receivable1,3801,4191,460Inventory3,0783,7993,257Property
and Equipment37,41337,40737,402Total
Assets104,136104,33486,438LiabilitiesAccounts
Payable1,5601,9261,651Debt30,00030,00010,000Total
Liabilities31,56031,92611,651Shareholders' EquityEquity
Capital33,68533,68533,685Retained
Earnings38,89238,72341,103Shareholders'
Equity72,57772,40874,788Total Liabilities and Shareholders'
Equity104,137104,33486,439201720182019Cash Flow
StatementOperating Cash FlowNet
Earnings1,845(168)2,379Plus: Depreciation and
Amortization2,8142,8062,806Less: Changes in Working
Capital(10,312)395(227)Cash from
Operations14,9712,2425,412Investing Cash FlowInvestments in
Property and Equipment2,7062,8002,800Cash from
Investing2,7062,8002,800Financing Cash FlowIssuance
(repayment) of Debt--(20,000)Issuance (repayment) of Equity---
18. Cash from Financing--(20,000)Net Increase (decrease) in
Cash12,265(558)(17,388)Opening Cash
Balance50,00062,26561,708Closing Cash
Balance62,26561,70844,319Supporting SchedulesWorking
Capital ScheduleAccounts
Receivable1,3801,4191,460Inventory3,0783,7993,257Accounts
Payable1,5601,9261,651Net Working Capital
(NWC)2,8983,2933,066Change in
NWC(10,312)395(227)Depreciation SchedulePPE
Opening37,52137,41337,407Plus Capex2,7062,8002,800Less
Depreciation2,8142,8062,806PPE
Closing37,41337,40737,402Debt and Interest ScheduleDebt
Opening30,00030,00030,000Issuance (repayment)--
(20,000)Debt Closing30,00030,00010,000Interest
Expense900900900
COMPANY B Three Year DataB_CO_FINANCELearner Copy
Rev 3/14/21COMPANY B Illlustrative Data for Educational
Purposes All values shown are in
thousands.201720182019Income
StatementRevenue27,98126,30227,091Cost of Goods Sold
(COGS)15,38918,41118,151Gross
Profit12,5917,8918,940ExpensesSalaries and
Benefits2,9102,6002,910Rent and
Overhead1,3541,3541,354Depreciatio n and
Amortization2,8142,8062,776Interest2,7001,8001,800Total
Expenses9,7788,5608,840Earnings Before
Tax2,813(669)100Taxes788(141)21Net
Earnings2,025(529)79201720182019Balance
SheetAssetsCash82,44582,91472,944Accounts
Receivable1,3801,2971,336Inventory3,07 82,0181,989Property
and Equipment37,41337,00737,032Total
Assets124,316123,236113,301LiabilitiesAccounts
Payable1,5601,009995Debt90,00090,00080,000Total
Liabilities91,56091,00980,995Shareholders' EquityEquity
Capital33,68533,68533,685Retained
19. Earnings(928)(1,457)(1,378)Shareholders'
Equity32,75732,22832,307Total Liabilities and Shareholders'
Equity124,317123,236113,301201720182019Cash Flow
StatementOperating Cash FlowNet Earnings2,025(529)79Plus:
Depreciation and Amortization2,8142,8062,776Less: Changes in
Working Capital(10,312)(592)25Cash from
Operations15,1512,8692,830Investing Cash FlowInvestments in
Property and Equipment2,7062,4002,800Cash from
Investing2,7062,4002,800Financing Cash FlowIssuance
(repayment) of Debt--(10,000)Issuance (repayment) of Equity---
Cash from Financing--(10,000)Net Increase (decrease) in
Cash12,445469(9,970)Opening Cash
Balance70,00082,44582,914Closing Cash
Balance82,44582,91472,944Supporting SchedulesWorking
Capital ScheduleAccounts
Receivable1,3801,2971,336Inventory3,0782,0181,9 89Accounts
Payable1,5601,009995Net Working Capital
(NWC)2,8982,3062,331Change in
NWC(10,312)(592)25Depreciation SchedulePPE
Opening37,52137,41337,007Plus Capex2,7062,4002,800Less
Depreciation2,8142,8062,776PPE
Closing37,41337,00737,032Debt and Interest ScheduleDebt
Opening90,00090,00090,000Issuance (repayment)--
(10,000)Debt Closing90,00090,00080,000Interest
Expense2,7001,8001,800
COMPANY B Three Year DataB_CO_FINANCELearner Copy
Rev 3/14/21COMPANY B Illlustrative Data for Educational
Purposes All values shown are in
thousands.201720182019Income
StatementRevenue27,98126,30227,091Cost of Goods Sold
(COGS)15,38918,41118,151Gross
Profit12,5917,8918,940ExpensesSalaries and
Benefits2,9102,6002,910Rent and
Overhead1,3541,3541,354Depreciation and
Amortization2,8142,8062,776Interest2,7001,8001,800Total
20. Expenses9,7788,5608,840Earnings Before
Tax2,813(669)100Taxes788(141)21Net
Earnings2,025(529)79201720182019Balance
SheetAssetsCash82,44582,91472,944Accounts
Receivable1,3801,2971,336Inventory3,0782,0181,989Property
and Equipment37,41337,00737,032Total
Assets124,316123,236113,301LiabilitiesAccounts
Payable1,5601,009995Debt90,00090,00080,000Total
Liabilities91,56091,00980,995Shareholders' EquityEquity
Capital33,68533,68533,685Retained
Earnings(928)(1,457)(1,378)Shareholders'
Equity32,75732,22832,307Total Liabilities and Shareholders'
Equity124,317123,236113,301201720182019Cash Flow
StatementOperating Cash FlowNet Earnings2,025(529)79Plus:
Depreciation and Amortization2,8142,8062,776Less: Changes in
Working Capital(10,312)(592)25Cash from
Operations15,1512,8692,830Investing Cash FlowInvestments in
Property and Equipment2,7062,4002,800Cash from
Investing2,7062,4002,800Financing Cash FlowIssuance
(repayment) of Debt--(10,000)Issuance (repayment) of Equity---
Cash from Financing--(10,000)Net Increase (decrease) in
Cash12,445469(9,970)Opening Cash
Balance70,00082,44582,914Closing Cash
Balance82,44582,91472,944Supporting SchedulesWorking
Capital ScheduleAccounts
Receivable1,3801,2971,336Inventory3,0782,0181,989Accounts
Payable1,5601,009995Net Working Capital
(NWC)2,8982,3062,331Change in
NWC(10,312)(592)25Depreciation SchedulePPE
Opening37,52137,41337,007Plus Capex2,7062,4002,800Less
Depreciation2,8142,8062,776PPE
Closing37,41337,00737,032Debt and Interest ScheduleDebt
Opening90,00090,00090,000Issuance (repayment)--
(10,000)Debt Closing90,00090,00080,000Interest
Expense2,7001,8001,800
21. A company’s strategic priorities must drive how capital
allocations are made and the size of each unit’s operating
budget.
Using the NEC Danforth’s library resources search for recent
(most recent five years) articles that discusses how a company
has revised its pattern of resource allocation and divisional
budgets to support new strategic initiatives. How do the
revisions fit within the context of the material we have covered
in our coursework (Thompson text and other material) from this
week?
Submission Details:
· Your analysis must be driven by facts, research, and data.
· Your analysis should be between 1000 and 1500 words.
· Incorporate a minimum of at least our course text and one
non-course scholarly/peer reviewed source in your paper. All
written assignments must include a coverage page, introductory
and concluding paragraphs, reference page, and proper in-text
citations using APA guidelines.