Problem 2 - Statement of Cash FlowsOrange You Glad CompanyComparative Income Statements (000's omitted)For the Years Ended December 31, 2020 and 2021 Income Statement 20212020Net Sales $ 400 $ 290Cost of Goods Sold 255 172Gross Profit 145 118Operating Expenses 85 65Operating Income 60 53Interest Expense 5 12Income Before Income Taxes 55 41Income Taxes 19 14Net Income $ 36 $ 27Orange You Glad CompanyComparative Balance Sheets (000's omitted)December 31, 2021 and 2020Balance Sheet Assets:12/31/2112/31/20Cash $ 8 $ 52Accounts Receivable $ 40 $ 58Inventory 165 130Property, Plant, and Equipment (net)* 145 115Total Assets $ 358 $ 355*Assume no depreciation on PPE Liabilities and Stockholders' Equity: Accounts Payable 36 54Long-Term Debt 200 123Total Liabilities 236 177Stockholders' Equity (SHE) 122 178Total Liabilities and Stockholders' Equity $ 358 $ 355Assume Dividends paid were paid in cash $ 92 $ - Additional Analysis: SHE - Beg $ 178 $ 151Add: NI $ 36 $ 27Available for Div $ 214 $ 178Less: Div $ 92 $ - SHE - End $ 122 $ 178 Requirement: AComplete the 2021 Statement of Cash flows Indirect and Direct methods Operating Sources/Uses: Orange You Glad Company Orange You Glad Company SCF Indirect Method for the year ended December 31, 2021 SCF Direct Method for the year ended December 31, 2021 Operating: Operating: Net Income: Total Cash Received: Increase in Inventory: Total Cash Paid Inventory: Decrease in Accounts Receivable: Total Cash Paid AP: Decrease in Accounts Payable: Total Cash Paid Expenses: Total Cash Interest & Taxes: Total Operating Sources: $ - Total Operating Sources: $ - Calculations, Discussion and Comments: BGiven the 3 independent SCF profiles below, match the appropriate company by stage of maturity Note Bracketed figures denote decreases Company M Stage of Maturity: Operating Cash Flows $ 1,000,000 1)Start up enterprise Investing Cash Flows ( $ 100,000) Financing Cash Flows ( $ 700,000) Sol: 2)Fully Mature enterprise Company N Operating Cash Flows $ 100,000 3)Going Concern Risk Investing Cash Flows ($ 800,000) Financing Cash Flows $ 900,000 Sol: Company O Operating Cash Flows ($ 50,000) Investing Cash Flows ($ 100,000) Financing Cash Flows ($ 900,000) Sol:

*Decrease in current assets is added while increase in current assets is deducted. *Increase in…

Answered: Complete the 2021 Statement of Cash…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter3: Income Flows Versus Cash Flows: Understanding The Statement Of Cash Flow

Section: Chapter Questions

Problem 1HIC

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Problem 2 - Statement of Cash Flows

Orange You Glad Company
Comparative Income Statements (000's omitted)
For the Years Ended December 31, 2020 and 2021

Income Statement
	2021	2020
Net Sales	$ 400	$ 290
Cost of Goods Sold	255	172
Gross Profit	145	118
Operating Expenses	85	65
Operating Income	60	53
Interest Expense	5	12
Income Before Income Taxes	55	41
Income Taxes	19	14
Net Income	$ 36	$ 27
Orange You Glad Company
Comparative Balance Sheets (000's omitted)
December 31, 2021 and 2020
Balance Sheet
Assets:	12/31/21	12/31/20
Cash	$ 8	$ 52
Accounts Receivable	$ 40	$ 58
Inventory	165	130
Property, Plant, and Equipment (net)*	145	115
Total Assets	$ 358	$ 355
*Assume no depreciation on PPE


Liabilities and Stockholders' Equity:
Accounts Payable	36	54
Long-Term Debt	200	123
Total Liabilities	236	177
Stockholders' Equity (SHE)	122	178
Total Liabilities and Stockholders' Equity	$ 358	$ 355
Assume Dividends paid were paid in cash	$ 92	$ -
Additional Analysis:
SHE - Beg	$ 178	$ 151
Add: NI	$ 36	$ 27
Available for Div	$ 214	$ 178
Less: Div	$ 92	$ -
SHE - End	$ 122	$ 178

Requirement:
A	Complete the 2021 Statement of Cash flows Indirect and Direct methods Operating Sources/Uses:

	Orange You Glad Company			Orange You Glad Company
	SCF Indirect Method for the year ended December 31, 2021			SCF Direct Method for the year ended December 31, 2021
	Operating:			Operating:
	Net Income:			Total Cash Received:
	Increase in Inventory:			Total Cash Paid Inventory:
	Decrease in Accounts Receivable:			Total Cash Paid AP:
	Decrease in Accounts Payable:			Total Cash Paid Expenses:
				Total Cash Interest & Taxes:
	Total Operating Sources:	$ -		Total Operating Sources:	$ -

Calculations, Discussion and Comments:


B	Given the 3 independent SCF profiles below, match the appropriate company by stage of maturity
	Note Bracketed figures denote decreases
	Company M			Stage of Maturity:
	Operating Cash Flows $ 1,000,000		1)	Start up enterprise
	Investing Cash Flows ( $ 100,000)
	Financing Cash Flows ( $ 700,000)
Sol:			2)	Fully Mature enterprise

	Company N
	Operating Cash Flows $ 100,000		3)	Going Concern Risk
	Investing Cash Flows ($ 800,000)
	Financing Cash Flows $ 900,000
Sol:

	Company O
	Operating Cash Flows ($ 50,000)
	Investing Cash Flows ($ 100,000)
	Financing Cash Flows ($ 900,000)
Sol:

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