The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 46 Bank loans $ 46 Marketable securities 23 Accounts payable 140 Accounts receivable 123 Inventory 215 Total current assets $ 407 Total current liabilities $ 186 Fixed assets: Gross investment $ 263 Long-term debt 38 Less depreciation 83 Net worth (equity and retained earnings) 363 Net fixed assets $ 180 Total assets $ 587 Total liabilities and net worth $ 587 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 176.0 Debt due within a year (bank loans) $ 64.0 Marketable securities 0.0 Accounts payable 188.0 Accounts receivable 150.0 Inventory 261.0 Total current assets $ 587.0 Total current liabilities $ 252.0 Fixed assets: Gross investment $ 371.0 Long-term debt 86.0 Less depreciation 89.5 Net worth (equity and retained earnings) 530.5 Net fixed assets $ 281.5 Total assets $ 868.5 Total liabilities and owners’ equity $ 868.5 Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $ 1,500.0 Operating costs 1,408.5 $ 91.5 Depreciation 6.5 EBIT $ 85.0 Interest 5.0 Pretax income $ 80.0 Tax at 50% 40.0 Net income $ 40.0 Notes: Dividend = $30 million and reinvested earnings = $10 million. Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.) Dynamic Mattress(figures in $ millions)Sources of cash:Sold marketable securitiesIncreased bank loansIncreased accounts payableIncreased long-term debtNet incomeIssue of stockDepreciationTotal sourcesUses of cash:Increased inventoriesIncreased accounts receivableInvested in fixed assetsDividendTotal usesIncrease in cash balance
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 46 Bank loans $ 46 Marketable securities 23 Accounts payable 140 Accounts receivable 123 Inventory 215 Total current assets $ 407 Total current liabilities $ 186 Fixed assets: Gross investment $ 263 Long-term debt 38 Less depreciation 83 Net worth (equity and retained earnings) 363 Net fixed assets $ 180 Total assets $ 587 Total liabilities and net worth $ 587 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 176.0 Debt due within a year (bank loans) $ 64.0 Marketable securities 0.0 Accounts payable 188.0 Accounts receivable 150.0 Inventory 261.0 Total current assets $ 587.0 Total current liabilities $ 252.0 Fixed assets: Gross investment $ 371.0 Long-term debt 86.0 Less depreciation 89.5 Net worth (equity and retained earnings) 530.5 Net fixed assets $ 281.5 Total assets $ 868.5 Total liabilities and owners’ equity $ 868.5 Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $ 1,500.0 Operating costs 1,408.5 $ 91.5 Depreciation 6.5 EBIT $ 85.0 Interest 5.0 Pretax income $ 80.0 Tax at 50% 40.0 Net income $ 40.0 Notes: Dividend = $30 million and reinvested earnings = $10 million. Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.) Dynamic Mattress(figures in $ millions)Sources of cash:Sold marketable securitiesIncreased bank loansIncreased accounts payableIncreased long-term debtNet incomeIssue of stockDepreciationTotal sourcesUses of cash:Increased inventoriesIncreased accounts receivableInvested in fixed assetsDividendTotal usesIncrease in cash balance
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) |
||||||
Assets | Liabilities and Shareholders’ Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | $ | 46 | Bank loans | $ | 46 | |
Marketable securities | 23 | Accounts payable | 140 | |||
123 | ||||||
Inventory | 215 | |||||
Total current assets | $ | 407 | Total current liabilities | $ | 186 | |
Fixed assets: | ||||||
Gross investment | $ | 263 | Long-term debt | 38 | ||
Less |
83 | Net worth (equity and |
363 | |||
Net fixed assets | $ | 180 | ||||
Total assets | $ | 587 | Total liabilities and net worth | $ | 587 | |
Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) |
||||||
Assets | Liabilities and Shareholders’ Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | $ | 176.0 | Debt due within a year (bank loans) | $ | 64.0 | |
Marketable securities | 0.0 | Accounts payable | 188.0 | |||
Accounts receivable | 150.0 | |||||
Inventory | 261.0 | |||||
Total current assets | $ | 587.0 | Total current liabilities | $ | 252.0 | |
Fixed assets: | ||||||
Gross investment | $ | 371.0 | Long-term debt | 86.0 | ||
Less depreciation | 89.5 | Net worth (equity and retained earnings) | 530.5 | |||
Net fixed assets | $ | 281.5 | ||||
Total assets | $ | 868.5 | Total liabilities and owners’ equity | $ | 868.5 | |
Dynamic Mattress Income Statement for 2017 (figures in $ millions) |
||
Sales | $ | 1,500.0 |
Operating costs | 1,408.5 | |
$ | 91.5 | |
Depreciation | 6.5 | |
EBIT | $ | 85.0 |
Interest | 5.0 | |
Pretax income | $ | 80.0 |
Tax at 50% | 40.0 | |
Net income | $ | 40.0 |
Notes: Dividend = $30 million and reinvested earnings = $10 million.
Use the tables above to work out the statement of
Dynamic Mattress(figures in $ millions)Sources of cash:Sold marketable securitiesIncreased bank loansIncreased accounts payableIncreased long-term debtNet incomeIssue of stockDepreciationTotal sourcesUses of cash:Increased inventoriesIncreased accounts receivableInvested in fixed assetsDividendTotal usesIncrease in cash balance
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