a. Prepare a statement of cash flows for 2019 for Stiller Corporation. b. Calculate the company’s free cash flow. c. Assuming the 2019 cash flows grow at the rates of 20%, 18%, 15% in 2020, 2021, and 2022 respectively, and then stabilizes at 10% calculate the current value of Stiller Corporation. Assume the company’s weighted average cost of capital is 12%.
Q: DECEMBER 31, 2019 Cash $8,500 Current liabilities $15,000 Current assets other than cash…
A: The statement of cash flows is prepared for the year ending 2020. Operating activities provides net…
Q: Preparing the statement of cash flows—indirect method Accountants for Benson, Inc. have assembled…
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: 1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The comparative balance sheet for ENGRO Corporation is presented below: ENGRO CORPORATION…
A: cash flow statement : sum of cash flows from operating activities , investing activities and…
Q: Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets…
A: Loss on sale=Cost-Accumulated depreciation-Sale value=$172,500-145,500-$4,500=$22,500
Q: The following are comparative balance sheets for Cheyenne Company. Cheyenne Company Comparative…
A: Cash Flow Statement: In finance, a cash flow statement (CFS) is a financial statement that describes…
Q: 2018 Current assets $84,650 25,000 60, 000 Cash $26,800 32, еее 54,100 Accounts receivable Inventory…
A: Solution: Cash flow statement is the statement which represents the flows of cash transactions…
Q: The comparative balance sheet for ENGRO Corporation is presented below: ENGRO CORPORATION…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: A comparative balance sheet for Talkington Corporation is presented below. Assets Cash Accounts…
A: To calculate net cash flow from operating , investing and financing activities we prepare cash flow…
Q: Just Dew It Corporation 2018 and 2019 Balance Sheets Assets Liabilities and Owner’s Equity…
A: Formulas used: Debt-Equity ratio = Total Long term debt/Total Owners' equity Equity Multiplier =…
Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…
A: Formulas: Inventory turnover = Cost of goods sold / Average Inventory Days in inventory = 365 days/…
Q: Bramble Inc., had the following condensed balance sheet at the end of operations for 2019. BRAMBLE…
A: Prepairation of cash flow statement and balancesheet are as follows
Q: Cullumber Company has these comparative balance sheet data: CULLUMBER COMPANY Balance Sheets…
A: I am answering the first three sub-parts of the question as per bartleby guidelines. Please…
Q: Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…
A: Current ratio = Total current assets /Total current liabilities where, Total current assets = Cash…
Q: The comparative balance sheets for Splish Brothers Company appear below: SPLISH BROTHERS…
A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…
Q: ABC Coffee 2018 and 2019 Balance Sheet 2018 2019 2018 2019…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: e 2018 and 2019 year-end balance sheets of Kairos Industries are shown below: 2019…
A: Step 1 1 The greater the dividend income received by shareholders, the higher the tax burden on the…
Q: Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: 1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation…
A: To Find: Working capital Current ratio Acid-turnover ratio Accounts receivable turnover Average…
Q: Using Excel for financial statement analysis Download an Excel temp/ate for this problem online in…
A: The horizontal analysis involves comparing the current year amounts to the previous year amounts and…
Q: Shown below are comparative statements of financial position for Blue Spruce Corporation. BLUE…
A: The cash flow statement is prepared to record cash flow from various activities during the period.…
Q: Vaughn Corporation’s comparative balance sheets are presented below. VAUGHN CORPORATION…
A: The question is based on the concept of Cash flow statement.
Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…
A: The ratio analysis helps to analyse the financial statements of the business on basis of various…
Q: CASE ANALYSIS Case 1: Gardner Corporation For December 31, 2019, the balance sheet of the Gardner…
A: Financial statements shows the summaries for costs and revenues, assets, equities and liabilities,…
Q: resented below are data taken from the records of Shamrock Company. December 31, 2020…
A: The question is based on the concept of Cash flow statement. Cash flow statement is the statement…
Q: Corex comparative balance sheets are presented below. COREX CORPORATION Comparative Balance Sheets…
A: Solution: COREX CORPORATION Statement of cash flow For the year ended December 31, 2010…
Q: Condensed financial data of Cheng Inc. follow. Cheng Inc. Comparative Balance Sheets December 31…
A: Cash flow statement The purpose of preparing the cash flow statement to identify the net cash…
Q: Condensed financial data of Drake Company appear below: DRAKE COMPANY Comparative Balance Sheet…
A: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding…
Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…
A: Number of shares outstanding = Common stock/Par value = 74,500/5 =…
Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: RUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 66,100 $…
A: Cash flow statement means the statement which shows the cash inflow and outflow during the specified…
Q: Prepare a statement of cash flows for 2019 for Stiller Corporation. Calculate the company’s free…
A: Cash flow statement is prepared in accordance to IAS 7. It is a component of financial statements.…
Q: Condensed balance sheet and income statement data for Bridgeport Corporation are presented here.…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December 31…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The comparative balance sheet for ENGRO Corporation is presented below: ENGRO CORPORATION…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: Presented below are data taken from the records of Crane Company. December 31, 2020…
A: Cash flow statement is one of the financial statements, which are presented in the annual reports of…
Q: Condensed balance sheet and income statement data for Jergan Corporation are presented here.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Presented below are data taken from the records of Sheffield Company. December 31, 2020…
A: The cash flow statement is prepared to estimate the amount of cash outflow or inclow during the…
Q: Lendell Company has these comparative balance sheet data: Lendell Company Balance Sheets December…
A: Ratio analysis: Ratio analysis is a quantitative method of assessing financial accounts such as the…
Q: Balance Sheet 2019 2018 Income Statement 2019 2018 Assets Cash $ 51,000,000 $ 47,000,000 Sales…
A: earning per share is calculated by dividing profit by number of shares: net earning per share=net…
Q: Condensed financial data of Coronado Inc. follow. CORONADO INC. Comparative Balance Sheets…
A: Introduction: A cash flow statement is a financial statement that details a company's cash inflows…
Q: Balance Sheet 2019 2018 Income Statement 2019 2018 Assets Sales $ 51,000,000 $ 47,000,000 5,100,000…
A: Book value per share can be calculated by dividing stockholders equity excluding preferred stock…
Q: Condensed financial data of Larkspur, Inc. follow. Larkspur, Inc. Comparative Balance Sheets…
A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…
Q: Condensed financial data of Coronado Inc. follow. CORONADO INC. Comparative Balance Sheets…
A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…
Q: Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and…
A: Ratio analysis is the evaluation of information in the financial statements of the company. The…
Q: CONCORD INC. Statement of Cash Flows Adjustments to reconcile net income to > < $ LA LA
A: Statement of Cash Flows :— It is a financial statement which shows change in cash & cash…
Q: Vali COMPANY Comparative Balance Sheet 2019 Assets 2018 Cash. $61,000 $12,000 Accounts receivable.…
A: We have assume that the given net income is before payment of dividend, therefore no treatment…
Q: Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2…
A: Profit Margin =Net Income/Net Sales Gross Profit Rate = Gross Profit/Net Sales Asset Turnover =Net…
Q: he comparative balance sheets for Metlock Company appear below: METLOCK COMPANY Comparative…
A: Cash Flow from Operating Activities = $60000 Cash Flow from Investing Activities = -$32000 Cash…
Stiller Corporation Comparative Balance Sheet (2018-2019) in USD
# TEXT 2019 2018
1 Cash $157,000 $78,000
2 Accounts Receivable 180,000 185,000
3 Investments 52,000 74,000
4 Equipment 298,000 240,000
5 Less Accumulated
6 Current liabilities 134,000 151,000
7 Common Stock 160,000 160,000
8
Additional information:
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold;
cash dividends paid were $50,000; and net income was $160,000.
a. Prepare a statement of cash flows for 2019 for Stiller Corporation.
b. Calculate the company’s
c. Assuming the 2019 cash flows grow at the rates of 20%, 18%, 15% in 2020, 2021,
and 2022 respectively, and then stabilizes at 10% calculate the current value of
Stiller Corporation. Assume the company’s weighted average cost of capital is 12%.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?
- Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000Comprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following balance sheet at the beginning of 2019: Additional information related to the statement of cash flows: 1. The long-term bonds have a face value of 6,000 and were issued on December 31, 2019. 2. The building was purchased on December 30, 2019. 3. The land was sold at its original cost. 4. The common stock which was sold totaled 300 shares and had a par value of 10 per share. Required: Next Level Prepare a classified balance sheet for Mills as of December 31, 2019. (Hint. Review the information on the statement of cash flows and the balances in the beginning balance sheet accounts to determine the impact on the ending balance sheet accounts.)Spreadsheet and Statement The following 2019 information is available for Stewart Company: Partial additional information: The equipment that was sold for cash had cost 400 and had a book value of 300. Land that was sold brought a cash price of 530. Fifty shares of stock were issued at par. Required: Making whatever additional assumptions that are necessary, 1. Prepare a spreadsheet to support a 2019 statement of cash flows for Stewart. 2. Prepare the statement of cash flows.
- Spreadsheet and Statement The following 2019 information is available for Stewart Company: Partial additional information: The equipment that was sold for cash had cost 400 and had a book value of 300. Land that was sold brought a cash price of 530. Fifty shares of stock were issued at par. (Appendix 21.1) Operating Cash Flows Spreadsheet Method Refer to the information for Stewart Company in E21-11. Required: Raised only on the information presented and using the direct method, prepare the cash flows from operating activities section of the 2019 statement of cash flows for Stewart using the spreadsheet method.Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
- Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callableComprehensive: Income Statement and Supporting Schedules The following s a partial list of the account balances, after adjustments, of Silvoso Company on December 31, 2019: The following information is also available: 1. The company declared and paid a 0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019, ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of 12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a major component of the company) had incurred a pretax operating loss of 8,700. Division R was sold at a pretax gain of 10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals 4,230. The breakdown is as follows: 6. The company had average shareholders equity of 150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. 2. Prepare a 2019 multiple-step income statement for Silvoso. Include any related note to the financial statements. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Silvosos return on common equity for 2019? What is your evaluation of Silvosos return on common equity if last year it was 10%?Partially Completed Spreadsheet Hanks Company has prepared the following changes in account balances for the spreadsheet to support its 2019 statement of cash flows: Additional information: The net income was 1,300. Depreciation expense was 350, and patent amortization expense was 100. At the end of 2019, long-term investments were purchased at a cost of 1,550. Land that cost 700 was sold for 900. On December 31, 2019, bonds payable with a face value of 2,000 were issued for equipment valued at 2,300. Two hundred shares of common stock were issued at 7 per share. Forty shares of common stock were issued as a small stock dividend, the relevant market price being 5 per share. Cash dividends declared and paid totaled 600. Required: On the basis of the preceding information, complete the spreadsheet.