Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and eq

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 2021 ($) 2022 ($)
Balances
Accounts Payable 24,600.0Ꮎ 21,250.9Ꮎ
Accounts receivable 15,700.00 12,340.00
Cash | 23,458.9Ꮎ 28,600.ᎾᎾ
Cost of goods sold 19,780.00 22,ᎾᏬe.ᎾᎾ
Depreciation 3,090.00 4,590.8e
Dividends | 5,800.00 10,800.00
Interest 2,340.00 2,899.0-
Inventory 7,05e.ee 8,640.00
Long-term debt | 28,009.00 30,000.0
Net fixed assets 41,500.00 48,ᎾᎾᎾ ᎾᎾ
Other expenses 2,400.00 2,800.ee
58,ᎾᎾᎾ.00 62,500.0Ꮎ
Sales
Short-term Notes Payable 2,890.00 2,340.00
Shares outstanding 85,000.00 90,ᎾᎾᎾᎾᎾ
The tax rate is 32%
Transcribed Image Text:Life-Positive's Account 2021 ($) 2022 ($) Balances Accounts Payable 24,600.0Ꮎ 21,250.9Ꮎ Accounts receivable 15,700.00 12,340.00 Cash | 23,458.9Ꮎ 28,600.ᎾᎾ Cost of goods sold 19,780.00 22,ᎾᏬe.ᎾᎾ Depreciation 3,090.00 4,590.8e Dividends | 5,800.00 10,800.00 Interest 2,340.00 2,899.0- Inventory 7,05e.ee 8,640.00 Long-term debt | 28,009.00 30,000.0 Net fixed assets 41,500.00 48,ᎾᎾᎾ ᎾᎾ Other expenses 2,400.00 2,800.ee 58,ᎾᎾᎾ.00 62,500.0Ꮎ Sales Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,ᎾᎾᎾᎾᎾ The tax rate is 32%
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