ABC Inc.Balance Sheet as at December 31, 2015 and 2016 ($ thousands)Current AssetsCashAccounts ReceivableInventoryTotal Current AssetsFixed AssetsProperty, Plant & EquipmentLess Accumulated DepreciationProperty. Plant & Equipment, netTotal AssetsLiabilities and S/H EquityCurrent LiabilitiesAccounts PayableNotes Payable and short-term deblTotal Current LiabilitiesLong-Term DebtShareholders EquityCommon SharesPaid-In CapitalRetained EarningsTotalTotal Liabilities and S/H EquityABC Inc.Income Statement for 2015 and 2016 ($ thousands)RevenueCost of Goods SoldOperating ExpensesDepreciationEarnings Before Interest & Taxes (EBIT)Interest PaidIncome Before Taxes (EBT)Taxes PaidNet Income (NI)Dividend$ 200450550$1,2002.200(1,000)1,2002015$2,400$ 2000$ 200$ 600300600700$1,600$2,4002015$1,20070030220$ 250150$ 20080$ 1202016$1,45085014020036060$ 300120$ 18080$2016$ 150425625$1,2002,70011.200)1,500$2,700$ 150150300300600800$1.700$2,700700I a) Identify the items the items that you need to adjust to Net Income to determine cash flow fromoperating activitiesictions: On1. Depreciation Expense2. Year over year change in Accounts Receivable (2016 balance over 2015 balance)3. Year over year change in Inventory (2016 balance over 2015 balance)4. Year over year change in Accounts Payable (2016 balance over 2015 balance)b) Calculate cash flow from operating activities (CFO) for 2016$ 180Net IncomeAdd: Depreciation ExpenseAdd: Decrease in Accounts ReceivableLess: Increase in inventoryLess: Decrease in Accounts PayableCash flow from OperationsAccessibility: Investigate$ 200$ 25C)culate cash flow from investing activities for 2016= - (Year over year change in gross balance of fixed asset or Property, Plant & Equipment)= -(2016 Gross balance - 2015 Gross balance) = $(2,700 2,200) = -$500Search($ 75)($ 50)$ 280SAMSUNG13

Cash flow statement is the financial statement that records the inflow and outflow of cash…

ABC Inc. Balance Sheet as at December 31, 2015 and 2016 ($ thousands) Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant & Equipment Less Accumulated Depreciation Property, Plant & Equipment, net Total Assets Liabilities and S/H Equity Current Liabilities Accounts Payable Notes Payable and short-term debt Total Current Liabilities Long-Term Debt Shareholders' Equity Common Shares Pald-In Capital Retained Earnings Total Total Liabilities and S/H Equity ABC Inc. Income Statement for 2015 and 2016 ($ thousands) Revenue Cost of Goods Sold Operating Expenses Depreciation Earnings Before Interest & Taxes (EBIT) Interest Paid Income Before Taxes (EBT) Taxes Paid Net Income (NI) Dividend $ 200 450 550 $1,200 2015 2,200 (1,000) 1,200 $2,400 $ 200 0 $ 200 $ 600 300 600 700 $1,600 $2,400 2015 $1,200 700 30 220 250 $ 200 120 2016 $1,450 850 40 200 $360 Inn 2016 60 300 120 $ 180 80 $ 150 425 625 $1,200 300 600 800 $1,700 $2,700 2,700 (1,200) 1,500 $2,700 $ 150 150 300 700 I

ABC Inc. Balance Sheet as at December 31, 2015 and 2016 ($ thousands) Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant & Equipment Less Accumulated Depreciation Property, Plant & Equipment, net Total Assets Liabilities and S/H Equity Current Liabilities Accounts Payable Notes Payable and short-term debt Total Current Liabilities Long-Term Debt Shareholders' Equity Common Shares Pald-In Capital Retained Earnings Total Total Liabilities and S/H Equity ABC Inc. Income Statement for 2015 and 2016 ($ thousands) Revenue Cost of Goods Sold Operating Expenses Depreciation Earnings Before Interest & Taxes (EBIT) Interest Paid Income Before Taxes (EBT) Taxes Paid Net Income (NI) Dividend $ 200 450 550 $1,200 2015 2,200 (1,000) 1,200 $2,400 $ 200 0 $ 200 $ 600 300 600 700 $1,600 $2,400 2015 $1,200 700 30 220 250 $ 200 120 2016 $1,450 850 40 200 $360 Inn 2016 60 300 120 $ 180 80 $ 150 425 625 $1,200 300 600 800 $1,700 $2,700 2,700 (1,200) 1,500 $2,700 $ 150 150 300 700 I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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