Case 1 Part 1 Financial Statements, Cash Flows, Financial Planning Warren Manufacturing, Inc. Larissa Warren started Warren Manufacturing several years ago. Warren manufactures electronic controls for a variety of manufacturing applications. The company is organized as an LLC. The Company is located in Willington NC. The industry is fragmented with few competitors. Warren Manufacturing has a very good reputation in the industry for quality and delivery. Larissa’s background is engineering so her financial skills are limited. As a result the financial information being supplied although accurate is not in financial statement form. Larissa has hired you to “clean things up” from a financial statement perspective. She has also asked you to prepare and comment on the “cash flows” (operating cash flow, cash flow from assets, to creditors to shareholder) for 2019. She also want for you explain what they mean and impact on company’s performance. Larissa has provided you the following information, although deemed accurate, is not in a very useable form. Warren Manufacturing currently pays out 50 percent of net income as dividends. The effective tax rate is 30%. You are to prepare the following in good presentation form): An income statement for 2018 and 2019. A balance sheet for 2018 and 2019. Operating cash flow for each year. Cash flow from assets for 2019. Cash flow to creditors for 2019. Cash flow to stockholders for 2019.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Case 1 Part 1
Financial Statements, Cash Flows, Financial Planning Warren Manufacturing, Inc.

Larissa Warren started Warren Manufacturing several years ago. Warren manufactures electronic controls for a variety of manufacturing applications. The company is organized as an LLC. The Company is located in Willington NC. The industry is fragmented with few competitors. Warren Manufacturing has a very good reputation in the industry for quality and delivery. Larissa’s background is engineering so her financial skills are limited. As a result the financial information being supplied although accurate is not in financial statement form.

Larissa has hired you to “clean things up” from a financial statement perspective. She has also asked you to prepare and comment on the “cash flows” (operating cash flow, cash flow from assets, to creditors to shareholder) for 2019. She also want for you explain what they mean and impact on company’s performance.

Larissa has provided you the following information, although deemed accurate, is not in a very useable form.

Warren Manufacturing currently pays out 50 percent of net income as dividends.
The effective tax rate is 30%.

You are to prepare the following in good presentation form):

An income statement for 2018 and 2019.

A balance sheet for 2018 and 2019.

Operating cash flow for each year.

Cash flow from assets for 2019.

Cash flow to creditors for 2019.

Cash flow to stockholders for 2019.

A l 21%
11:10 PM
CHAPTER 2 CASE...
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Warren Manufacturing
2018
2019
Cost of Goods Sold
203,963
257,528
Cash
29,429
31,267
Other Expenses
40,110
52,351
Depreciation
Accounts Payable
57,576
65,076
52,015
57,708
Interest
12,530
14,345
Taxes (30%)
Sales
400,111
487,712
Notes Payable (Current)
23,708
25,885
Dividends
Addition to Retained Earnings
Accounts Receivable
20,854
27,050
Common Stock
50,000
75,000
Inventory
43,884
60,222
Dividends 50% of Net Income
Net Fixed Assets
254,017
316,825
Long Term Debt
Retained Earnings
128,218
148,084
94,243
Warren Manufacturing currently pays out
50 percent of net income as dividends.
The effective tax rate is 30%.
You are to prepare the following in good
presentation form):
1. An income statement for 2018 and
2019.
2. A balance sheet for 2018 and 2019.
3. Operating cash flow for each ye?-
4. Cash flow from assets for 2019 /
5. Cash flow to creditors for 2019.
Coch flow to otookboldore for 201O.

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