1. Technology Corporation increased its sales from $375,000 in 2012 to $ 450,000 in2013 as shown in the firm's income statements presented below. LaAnn Sands, CEO and founder of the firm, expressed concern that the cash account and the firm's cash declined substantially between 2012 and 2013. Salza's complete balance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology. SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN $ THOUSANDS) 2012 2013 Net sales $375 $450 Less: Cost of goods sold -225 -270 Gross profit 150 180 Less: Operating expenses -46 -46 Less: Depreciation -25 -30 Less: Interest -4 -4 Income before taxes 75 100 Less: Income taxes -20 -30 Net income $ 55 $ 70 Cash dividends $17 $20
1. Technology Corporation increased its sales from $375,000 in 2012 to $ 450,000 in2013 as shown in the firm's income statements presented below. LaAnn Sands, CEO and founder of the firm, expressed concern that the cash account and the firm's cash declined substantially between 2012 and 2013. Salza's complete balance sheets are also shown. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology. SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN $ THOUSANDS) 2012 2013 Net sales $375 $450 Less: Cost of goods sold -225 -270 Gross profit 150 180 Less: Operating expenses -46 -46 Less: Depreciation -25 -30 Less: Interest -4 -4 Income before taxes 75 100 Less: Income taxes -20 -30 Net income $ 55 $ 70 Cash dividends $17 $20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
LaAnn Sands wants to conduct revenue breakeven analyses of Salza Technology Corporation for 2013. For 2013, the firm’s cost of goods sold is considered to be variable costs, and operating expenses are considered to be fixed cash costs.
![1. Technology Corporation increased its sales from $375,000 in 2012 to $ 450,000 in2013
as shown in the firm's income statements presented below. LaAnn Sands, CEO and
founder of the firm, expressed concern that the cash account and the firm's cash declined
substantially between 2012 and 2013. Salza's complete balance sheets are also shown.
Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for
Salza Technology.
SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN $ THOUSANDS)
2012
2013
Net sales
$375
$450
Less: Cost of goods sold
-225
-270
Gross profit
150
180
Less: Operating expenses
-46
-46
Less: Depreciation
-25
-30
Less: Interest
-4
-4
Income before taxes
75
100
Less: Income taxes
-20
-30
Net income
$ 55
$ 70
Cash dividends
$17
$20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff26ec4dc-b7f7-464a-b87b-bd5e9d90c522%2Fce044b27-6306-4215-8ba4-5f0b5a6369cc%2Fskgo0v8_processed.png&w=3840&q=75)
Transcribed Image Text:1. Technology Corporation increased its sales from $375,000 in 2012 to $ 450,000 in2013
as shown in the firm's income statements presented below. LaAnn Sands, CEO and
founder of the firm, expressed concern that the cash account and the firm's cash declined
substantially between 2012 and 2013. Salza's complete balance sheets are also shown.
Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for
Salza Technology.
SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENT (IN $ THOUSANDS)
2012
2013
Net sales
$375
$450
Less: Cost of goods sold
-225
-270
Gross profit
150
180
Less: Operating expenses
-46
-46
Less: Depreciation
-25
-30
Less: Interest
-4
-4
Income before taxes
75
100
Less: Income taxes
-20
-30
Net income
$ 55
$ 70
Cash dividends
$17
$20
![BALANCE SHEETS AS OF DECEMBER 31 (IN $ THOUSANDS)
2012
2013
Cash
$ 39
$ 16
Accounts receivables
50
80
Inventories
151
204
Total current assets
240
300
Gross fixed assets
200
290
Less: accumulated depreciation
-95
-125
Net fixed assets
105
165
Total assets
$ 345
$ 465
Account payable
$ 30
$ 45
Bank loan
20
27
Accrued liabilities
10
23
Total current liabilities
60
95
Long-term debt
15
15
Common stock
85
120
Retained earnings
185
235
Total liabilities and equity
$ 345
$ 465](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff26ec4dc-b7f7-464a-b87b-bd5e9d90c522%2Fce044b27-6306-4215-8ba4-5f0b5a6369cc%2Fxmfrb5_processed.png&w=3840&q=75)
Transcribed Image Text:BALANCE SHEETS AS OF DECEMBER 31 (IN $ THOUSANDS)
2012
2013
Cash
$ 39
$ 16
Accounts receivables
50
80
Inventories
151
204
Total current assets
240
300
Gross fixed assets
200
290
Less: accumulated depreciation
-95
-125
Net fixed assets
105
165
Total assets
$ 345
$ 465
Account payable
$ 30
$ 45
Bank loan
20
27
Accrued liabilities
10
23
Total current liabilities
60
95
Long-term debt
15
15
Common stock
85
120
Retained earnings
185
235
Total liabilities and equity
$ 345
$ 465
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education