1. Calculate the number of shares outstanding for the company and the market price per share at the end of 2020.2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied. GRIZZLY BEAR MUFFIN COMPANYBalance SheetIncome Statement ($M)Assets ($M)Liabilities & Shareholders' Equity ($M)20192020201920202020Current AssetsCashCurrent LiabilitiesAccounts PayableNotes PayableSales$84,4095,2905,8226,1207,098Cost of goods sold58,21826,191Accounts Receivable3,6566,5172,7383,1682,700Gross ProfitInventoryTotal Current Assets5,58613,614Other Current Liabilities4,088Depreciation7,4103,05515,995Total Current Liabilities12,34313,886EBIT18,781Interest Expense3,281|Long Term Debt19,00022,000Taxable Income15,500Fixed AssetsTaxes (35%)5,425$10,075Shareholders' EquityCommon Stock & paid-in-surplusAccumulated Retained EarningsTotal Shareholders EquityNet Plant and Equipment71,43379,669Net Income9,0009.000Dividends4,00144,704Retained Earnings50,77859,7786,07453,704EPS4.03Total Assets$85,047$95,664Total Liabilities & Shareholders' Equity | $85,047$95,664PE Ratio14.5

Answered: Calculate the number of shares…

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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1. Calculate the number of shares outstanding for the company and the market price per share at the end of 2020.
2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied.

GRIZZLY BEAR MUFFIN COMPANY
Balance Sheet
Income Statement ($M)
Assets ($M)
Liabilities & Shareholders' Equity ($M)
2019
2020
2019
2020
2020
Current Assets
Cash
Current Liabilities
Accounts Payable
Notes Payable
Sales
$84,409
5,290
5,822
6,120
7,098
Cost of goods sold
58,218
26,191
Accounts Receivable
3,656
6,517
2,738
3,168
2,700
Gross Profit
Inventory
Total Current Assets
5,586
13,614
Other Current Liabilities
4,088
Depreciation
7,410
3,055
15,995
Total Current Liabilities
12,343
13,886
EBIT
18,781
Interest Expense
3,281
|Long Term Debt
19,000
22,000
Taxable Income
15,500
Fixed Assets
Taxes (35%)
5,425
$10,075
Shareholders' Equity
Common Stock & paid-in-surplus
Accumulated Retained Earnings
Total Shareholders Equity
Net Plant and Equipment
71,433
79,669
Net Income
9,000
9.000
Dividends
4,001
44,704
Retained Earnings
50,778
59,778
6,074
53,704
EPS
4.03
Total Assets
$85,047
$95,664
Total Liabilities & Shareholders' Equity | $85,047
$95,664
PE Ratio
14.5

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The financial statement indicates the stand of the entity in the competitive market with the help of determining financial position and performance during the year.

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**GRIZZLY BEAR MUFFIN COMPANY Financials Overview**

**Balance Sheet (figures in $M)**

**Assets**

*Current Assets:*
- Cash:
- 2019: 5,290
- 2020: 5,822
- Accounts Receivable:
- 2019: 2,738
- 2020: 3,656
- Inventory:
- 2019: 5,586
- 2020: 6,517
- Total Current Assets:
- 2019: 13,614
- 2020: 15,995

*Fixed Assets:*
- Net Plant and Equipment:
- 2019: 71,433
- 2020: 79,669

*Total Assets:*
- 2019: 85,047
- 2020: 95,664

**Liabilities & Shareholders' Equity**

*Current Liabilities:*
- Accounts Payable:
- 2019: 6,120
- 2020: 7,098
- Notes Payable:
- 2019: 3,168
- 2020: 2,700
- Other Current Liabilities:
- 2019: 3,055
- 2020: 4,088
- Total Current Liabilities:
- 2019: 12,343
- 2020: 13,886

*Long Term Debt:*
- 2019: 19,000
- 2020: 22,000

*Shareholders' Equity:*
- Common Stock & paid-in-surplus:
- 2019: 9,000
- 2020: 9,000
- Accumulated Retained Earnings:
- 2019: 44,704
- 2020: 50,778
- Total Shareholders Equity:
- 2019: 53,704
- 2020: 59,778

*Total Liabilities & Shareholders' Equity:*
- 2019: 85,047
- 2020: 95,664

**Income Statement (2020 figures in $M)**

- Sales: 84,409
- Cost of Goods Sold:

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