Create a common-size statement of cash flows for 2020 that can be switched between using sales and the 2019 cash balance in the denominator 1. Using the data presented below:SalesCost of GoodsGross ProfitBig Rock Candy Mountain Mining Co.Income StatementsFor the Years 2019 and 20202020$412,500318,78693,71429,80026,2501,21036,4548,58227,8726,96820,904DepreciationSelling & Admin. ExpenseOther Operating ExpenseNet Operating IncomeInterest ExpenseEarnings Before TaxesTaxesNet IncomeNotes:Tax RateSharesEarnings per Share25.00%52,100$0.402019$398,600315,30083,30029,65224,5501,24527,8538,45719,3964,84914,54725.00%52,100$0.28 AssetsCashBig Rock Candy Mountain Mining Co.Balance SheetFor the Year Ended December 31, 20202020Marketable SecuritiesAccounts ReceivableInventoryTotal Current AssetsGross Fixed AssetsAccumulated DepreciationNet Plant & EquipmentTotal AssetsLiabilities & Owner's EquityAccounts PayableAccrued ExpensesTotal Current LiabilitiesLong-term DebtTotal LiabilitiesCommon Stock ($1.00 par)Additional Paid-in-CapitalRetained EarningsTotal Owner's EquityTotal Liab. & Owner's Equity$16,4353,65645,89652,397118,384436,57387,450349,123467,507$37,7523,18340,935170,562211,49758,664136,80760,539256,010467,5072019$11,59661947,40454,599114,218397,02357,650339,373453,591$36,8193,08539,904178,581218,48558,664136,80739,635235,106453,591

Answer - Cashflow Statement - The Cash flow statement sum up movement of cash and cash…

1. Using the data presented below: Sales Cost of Goods Gross Profit Big Rock Candy Mountain Mining Co. Income Statements For the Years 2019 and 2020 2020 $412,500 318,786 93,714 29,800 26,250 1,210 36,454 8,582 27,872 6,968 20,904 Depreciation Selling & Admin. Expense Other Operating Expense Net Operating Income Interest Expense Earnings Before Taxes Taxes Net Income Notes: Tax Rate Shares Earnings per Share 25.00% 52,100 $0.40 2019 $398,600 315,300 83,300 29,652 24,550 1,245 27,853 8,457 19,396 4,849 14,547 25.00% 52,100 $0.28

1. Using the data presented below: Sales Cost of Goods Gross Profit Big Rock Candy Mountain Mining Co. Income Statements For the Years 2019 and 2020 2020 $412,500 318,786 93,714 29,800 26,250 1,210 36,454 8,582 27,872 6,968 20,904 Depreciation Selling & Admin. Expense Other Operating Expense Net Operating Income Interest Expense Earnings Before Taxes Taxes Net Income Notes: Tax Rate Shares Earnings per Share 25.00% 52,100 $0.40 2019 $398,600 315,300 83,300 29,652 24,550 1,245 27,853 8,457 19,396 4,849 14,547 25.00% 52,100 $0.28

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 55CE

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