2016 Q.No. The income statement for Anupam Company Sales revenues Cost of goods sold Gross profit Operating expenses Loss before interest and taxes Interest expense Net loss Presented here are comparative balance sheets: . . . Cash Accounts receivable Inventory Prepayment Land Plant and equipment Accumulated Depreciation Total assets Accounts payable Other accrued liabilities Interest For the year ended December 3, 2015 $500,000 400,000 100,000 180,000 December 31 2015 $ 95,000 50,000 100,000 55,000 475,000 870,000 (370,000) 1,275,000 125,000 35,000 15,000 340,000 450,000 310,000 1,275,000 (80,000) 20,000 (100,000) Long-term loan payable Common stock Retained eamings Total liabilities and stockholder's equity Other information is as follows: Dividends of $ 35,000 were declared and paid during the year. Operating expenses include $70,000 of depreciation. 2014 $80,000 75,000 150,000 45,000 400,000 800,000 (300,000) 1,250,000 100,000 45,000 10,000 250,000 400,000 445,000 1,250,000 Land and plant and equipment were acquired for cash, and additiona stock was issued for cash. Required: 0 Prepare a statement of cash flows showing cash from operating investing and financing activities. On the basis of your statement in part (a), explain why cas increased during such an unprofitable year. Include in you memo your recommendations for improving the company bottom line.
2016 Q.No. The income statement for Anupam Company Sales revenues Cost of goods sold Gross profit Operating expenses Loss before interest and taxes Interest expense Net loss Presented here are comparative balance sheets: . . . Cash Accounts receivable Inventory Prepayment Land Plant and equipment Accumulated Depreciation Total assets Accounts payable Other accrued liabilities Interest For the year ended December 3, 2015 $500,000 400,000 100,000 180,000 December 31 2015 $ 95,000 50,000 100,000 55,000 475,000 870,000 (370,000) 1,275,000 125,000 35,000 15,000 340,000 450,000 310,000 1,275,000 (80,000) 20,000 (100,000) Long-term loan payable Common stock Retained eamings Total liabilities and stockholder's equity Other information is as follows: Dividends of $ 35,000 were declared and paid during the year. Operating expenses include $70,000 of depreciation. 2014 $80,000 75,000 150,000 45,000 400,000 800,000 (300,000) 1,250,000 100,000 45,000 10,000 250,000 400,000 445,000 1,250,000 Land and plant and equipment were acquired for cash, and additiona stock was issued for cash. Required: 0 Prepare a statement of cash flows showing cash from operating investing and financing activities. On the basis of your statement in part (a), explain why cas increased during such an unprofitable year. Include in you memo your recommendations for improving the company bottom line.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
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Problem 1FSA: Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at...
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Transcribed Image Text:2016 Q.No.
For the year ended December
3, 2015
The income statement for Anupam Company for 2015 is as
#
Sales revenues
Cost of goods sold
Gross profit
Operating expenses
.
Loss before interest and taxes
Interest expense
Net loss
Presented here are comparative balance sheets:
Cash
Accounts receivable
Inventory
Prepayment
Land
Plant and equipment
Accumulated Depreciation
Total liabilities and stockholder's equity
Other information is as follows:
Total assets
Accounts payable
Other accrued liabilities
Interest
Long-term loan payable
Common stock
Retained eamings
December 31
2015
$ 95,000
50,000
100,000
55,000
475,000
870,000
(370,000)
1,275,000
125,000
35,000
15,000
$500,000
400,000
100,000
180,000
340,000
450,000
310,000
1,275,000
(80,000)
20,000
(100,000)
2014
$ 80,000
75,000
150,000
45,000
400,000
800,000
(300,000)
1,250,000
100,000
45,000
10,000
250,000
400,000
445,000
1,250,000
Dividends of $ 35,000 were declared and paid during the year.
Operating expenses include $ 70,000 of depreciation.
Land and plant and equipment were acquired for cash, and additional
stock was issued for cash.
Required: 0 Prepare a statement of cash flows showing cash from operating,
investing and financing activities.
On the basis of your statement in part (a), explain why cash
increased during such an unprofitable year. Include in your
memo your recommendations for improving the company's
bottom line.
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