Life-Positive’s Account Balances 2021 ($) 2022 ($) accounts payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 tax rate is 32% 4. Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 5. Calculate the Dividends per Share and Earnings per Share for each year for Brown Company. 6. Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity.
Life-Positive’s Account Balances
2021 ($) 2022 ($)
accounts payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
Cost of goods sold 19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
Shares outstanding 85,000.00 90,000.00
tax rate is 32%
4. Calculate the cash flow from assets, cash flow to creditors,
and cash flow to stockholders for 2022.
5. Calculate the Dividends per Share and Earnings per Share for
each year for Brown Company.
6. Briefly comment on the company’s cash flows for 2022 in light
of an expansion plan which will be financed by both debt and
equity.
Financial statements are written documents that describe how a business operates and performs financially. These statements are often audited by government bodies, accountants, businesses, etc. to ensure the accuracy and for tax, financing, or investing purposes. The financial statements are composed of the balance sheet, income statement, cash flow statement, and statement of changes in equity. The balance sheet presents a snapshot of the company's assets, liabilities, and shareholder equity. The major topics of an income statement are a company's revenues and outlays incurred over a given time period. It shows the method used to determine the net income.
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