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Income Statement
Balance Sheet
Next Year
This Year
Next Year
Revenue
$5,000
Total assets
$1,000
$2,000
Operating expenses
4,000
Liabilities & equity:
EBIT
1,000
Current liabilities
$ 576
$ 200
Interest (8%)
?
Long-term debt
100
?
EBT
?
Equity
324
?
Taxes(40%)
?
Earnings after tax
?
Total liabilities
& equity
$1,000
$2,000
The firm pays 8% interest on all of its debt and is subject to a
40% tax rate. Complete the plan.
1. Emperor Corporation's financial statements for the last
year are shown below. The firm paid a $1,000 dividend to its
stockholders during the year. There were no sales of new stock.
Balance Sheets
ASSETS
Ending
Beginning
Income Statement
Cash
$ 2,000
$ 1,600
Sales
$100,000
Accounts receivable
12,000
5,200
COGS
80,000
Inventory
14,000
15,600
Gross Margin
$ 20,000
Current Assets
$28,000
$22,400
Cash Expenses
$ 8,000
Gross Fixed assets
$27,000
$20,000
Depreciation
1,600
Accumulated depreciation
(16,000
)
(14,400
)
EBIT
$ 10,400
Net fixed assets
11,000
5,600
Interest
800
Total assets
$39,000
$28,000
EBT
$ 9,600
LIABILITIES
Tax
2,600
Accounts payable
$ 3,000
$ 2,500
Net Income
$ 7,000
Accruals
1,000
1,500
Current Liabilities
$ 4,000
$ 4,000
Long term Debt
10,000
5,000
Equity
25,000
19,000
Total liabilities & equity
$39,000
$28,000
Develop Emperor's Statement of Cash Flows.

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In.docx

  • 2. Next Year This Year Next Year Revenue $5,000 Total assets $1,000 $2,000 Operating expenses 4,000 Liabilities & equity: EBIT 1,000 Current liabilities $ 576 $ 200 Interest (8%) ? Long-term debt 100 ? EBT ? Equity 324 ? Taxes(40%) ? Earnings after tax
  • 3. ? Total liabilities & equity $1,000 $2,000 The firm pays 8% interest on all of its debt and is subject to a 40% tax rate. Complete the plan. 1. Emperor Corporation's financial statements for the last year are shown below. The firm paid a $1,000 dividend to its stockholders during the year. There were no sales of new stock. Balance Sheets ASSETS Ending Beginning Income Statement Cash $ 2,000 $ 1,600 Sales $100,000 Accounts receivable 12,000 5,200 COGS 80,000 Inventory
  • 4. 14,000 15,600 Gross Margin $ 20,000 Current Assets $28,000 $22,400 Cash Expenses $ 8,000 Gross Fixed assets $27,000 $20,000 Depreciation 1,600 Accumulated depreciation (16,000 ) (14,400 ) EBIT $ 10,400 Net fixed assets 11,000 5,600 Interest 800 Total assets $39,000 $28,000 EBT $ 9,600
  • 5. LIABILITIES Tax 2,600 Accounts payable $ 3,000 $ 2,500 Net Income $ 7,000 Accruals 1,000 1,500 Current Liabilities $ 4,000 $ 4,000 Long term Debt 10,000 5,000 Equity 25,000 19,000
  • 6. Total liabilities & equity $39,000 $28,000 Develop Emperor's Statement of Cash Flows.