View the balance sheet and cash flows, and write a 100 word minimum analysis in complete sentences. Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Cash Flows-Operating Activities Depreciation $2,502,000 $2,342,000 $2,060,000 $1,727,000 Net Income Adjustments $2,395,000 $1,187,000 $1,043,000 $950,000 Changes in Operating Activities Accounts Receivable -$652,000 -$367,000 -$497,000 -$25,000 Changes in Inventories -$422,000 -$429,000 -$1,023,000 -$179,000 Other Operating Activities -$1,667,000 -$937,000 -$504,000 -$1,610,000 Liabilities $2,925,000 $1,384,000 $2,082,000 $1,317,000 Net Cash Flow-Operating $5,943,000 $2,405,000 $2,098,000 -$61,000 Cash Flows-Investing Activities Capital Expenditures -$3,232,000 -$1,432,000 -$2,319,000 -$4,081,000 Investments -- -- -- -- Other Investing Activities $100,000 -$4,000 -$18,000 -$115,000 Net Cash Flows-Investing -$3,132,000 -$1,436,000 -$2,337,000 -$4,196,000 Cash Flows-Financing Activities Sale and Purchase of Stock $12,675,000 $1,555,000 $727,000 $1,272,000 Net Borrowings -$2,488,000 $798,000 $89,000 $3,385,000 Other Financing Activities -- -- -- -- Net Cash Flows-Financing $9,973,000 $1,529,000 $574,000 $4,415,000 Effect of Exchange Rate $334,000 $8,000 -$23,000 $40,000 Net Cash Flow $13,118,000 $2,506,000 $312,000 $198,000 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Current Assets Cash and Cash Equivalents $19,384,000 $6,268,000 $3,879,000 $3,523,237 Short-Term Investments -- -- -- -- Net Receivables $1,886,000 $1,324,000 $949,000 $515,381 Inventory $4,101,000 $3,552,000 $3,113,000 $2,263,537 Other Current Assets $1,346,000 $959,000 $366,000 $268,365 Total Current Assets $26,717,000 $12,103,000 $8,307,000 $6,570,520 Long-Term Assets Long-Term Investments -- -- $422,000 $456,652 Fixed Assets $17,396,000 $14,061,000 $13,420,000 $14,144,126 Goodwill $207,000 $198,000 $68,000 $60,237 Intangible Assets $313,000 $339,000 $282,000 $361,502 Other Assets $7,515,000 $7,608,000 $7,241,000 $7,062,335 Deferred Asset Charges -- -- -- -- Total Assets $52,148,000 $34,309,000 $29,740,000 $28,655,372 Current Liabilities Accounts Payable $9,906,000 $6,993,000 $5,499,000 $4,121,616 Short-Term Debt / Current Portion of Long-Term Debt $2,132,000 $1,785,000 $2,568,000 $896,549 Other Current Liabilities $2,210,000 $1,889,000 $1,926,000 $2,656,505 Total Current Liabilities $14,248,000 $10,667,000 $9,993,000 $7,674,670 Long-Term Debt $9,556,000 $11,634,000 $9,404,000 $9,418,319 Other Liabilities $3,330,000 $2,691,000 $3,039,000 $4,752,192 Deferred Liability Charges $1,284,000 $1,207,000 $991,000 $1,177,799 Misc. Stocks $850,000 $849,000 $834,000 $997,346 Minority Interest $655,000 $643,000 $556,000 $397,804 Total Liabilities $29,268,000 $27,048,000 $24,261,000 $24,020,326 Stock Holders Equity Common Stocks $1,000 $1,000 -- $169 Capital Surplus -$5,399,000 -$6,083,000 -$5,318,000 -$4,974,299 Retained Earnings -- -- -- -- Treasury Stock $27,260,000 $12,736,000 $10,249,000 $9,178,024 Other Equity $363,000 -$36,000 -$8,000 $33,348 Total Equity $22,225,000 $6,618,000 $4,923,000 $4,237,242 Total Liabilities & Equity $52,148,000 $34,309,000 $29,740,000 $28,655,372
View the balance sheet and cash flows, and write a 100 word minimum analysis in complete sentences. Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Cash Flows-Operating Activities Depreciation $2,502,000 $2,342,000 $2,060,000 $1,727,000 Net Income Adjustments $2,395,000 $1,187,000 $1,043,000 $950,000 Changes in Operating Activities Accounts Receivable -$652,000 -$367,000 -$497,000 -$25,000 Changes in Inventories -$422,000 -$429,000 -$1,023,000 -$179,000 Other Operating Activities -$1,667,000 -$937,000 -$504,000 -$1,610,000 Liabilities $2,925,000 $1,384,000 $2,082,000 $1,317,000 Net Cash Flow-Operating $5,943,000 $2,405,000 $2,098,000 -$61,000 Cash Flows-Investing Activities Capital Expenditures -$3,232,000 -$1,432,000 -$2,319,000 -$4,081,000 Investments -- -- -- -- Other Investing Activities $100,000 -$4,000 -$18,000 -$115,000 Net Cash Flows-Investing -$3,132,000 -$1,436,000 -$2,337,000 -$4,196,000 Cash Flows-Financing Activities Sale and Purchase of Stock $12,675,000 $1,555,000 $727,000 $1,272,000 Net Borrowings -$2,488,000 $798,000 $89,000 $3,385,000 Other Financing Activities -- -- -- -- Net Cash Flows-Financing $9,973,000 $1,529,000 $574,000 $4,415,000 Effect of Exchange Rate $334,000 $8,000 -$23,000 $40,000 Net Cash Flow $13,118,000 $2,506,000 $312,000 $198,000 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Current Assets Cash and Cash Equivalents $19,384,000 $6,268,000 $3,879,000 $3,523,237 Short-Term Investments -- -- -- -- Net Receivables $1,886,000 $1,324,000 $949,000 $515,381 Inventory $4,101,000 $3,552,000 $3,113,000 $2,263,537 Other Current Assets $1,346,000 $959,000 $366,000 $268,365 Total Current Assets $26,717,000 $12,103,000 $8,307,000 $6,570,520 Long-Term Assets Long-Term Investments -- -- $422,000 $456,652 Fixed Assets $17,396,000 $14,061,000 $13,420,000 $14,144,126 Goodwill $207,000 $198,000 $68,000 $60,237 Intangible Assets $313,000 $339,000 $282,000 $361,502 Other Assets $7,515,000 $7,608,000 $7,241,000 $7,062,335 Deferred Asset Charges -- -- -- -- Total Assets $52,148,000 $34,309,000 $29,740,000 $28,655,372 Current Liabilities Accounts Payable $9,906,000 $6,993,000 $5,499,000 $4,121,616 Short-Term Debt / Current Portion of Long-Term Debt $2,132,000 $1,785,000 $2,568,000 $896,549 Other Current Liabilities $2,210,000 $1,889,000 $1,926,000 $2,656,505 Total Current Liabilities $14,248,000 $10,667,000 $9,993,000 $7,674,670 Long-Term Debt $9,556,000 $11,634,000 $9,404,000 $9,418,319 Other Liabilities $3,330,000 $2,691,000 $3,039,000 $4,752,192 Deferred Liability Charges $1,284,000 $1,207,000 $991,000 $1,177,799 Misc. Stocks $850,000 $849,000 $834,000 $997,346 Minority Interest $655,000 $643,000 $556,000 $397,804 Total Liabilities $29,268,000 $27,048,000 $24,261,000 $24,020,326 Stock Holders Equity Common Stocks $1,000 $1,000 -- $169 Capital Surplus -$5,399,000 -$6,083,000 -$5,318,000 -$4,974,299 Retained Earnings -- -- -- -- Treasury Stock $27,260,000 $12,736,000 $10,249,000 $9,178,024 Other Equity $363,000 -$36,000 -$8,000 $33,348 Total Equity $22,225,000 $6,618,000 $4,923,000 $4,237,242 Total Liabilities & Equity $52,148,000 $34,309,000 $29,740,000 $28,655,372
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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| Period Ending: | 12/31/2020 | 12/31/2019 | 12/31/2018 | 12/31/2017 |
|---|---|---|---|---|
| Net Income | $690,000 | -$870,000 | -$976,000 | -$1,962,000 |
| Cash Flows-Operating Activities | ||||
| $2,502,000 | $2,342,000 | $2,060,000 | $1,727,000 | |
| Net Income Adjustments | $2,395,000 | $1,187,000 | $1,043,000 | $950,000 |
| Changes in Operating Activities | ||||
| -$652,000 | -$367,000 | -$497,000 | -$25,000 | |
| Changes in Inventories | -$422,000 | -$429,000 | -$1,023,000 | -$179,000 |
| Other Operating Activities | -$1,667,000 | -$937,000 | -$504,000 | -$1,610,000 |
| Liabilities | $2,925,000 | $1,384,000 | $2,082,000 | $1,317,000 |
| Net Cash Flow-Operating | $5,943,000 | $2,405,000 | $2,098,000 | -$61,000 |
| Cash Flows-Investing Activities | ||||
| Capital Expenditures | -$3,232,000 | -$1,432,000 | -$2,319,000 | -$4,081,000 |
| Investments | -- | -- | -- | -- |
| Other Investing Activities | $100,000 | -$4,000 | -$18,000 | -$115,000 |
| Net Cash Flows-Investing | -$3,132,000 | -$1,436,000 | -$2,337,000 | -$4,196,000 |
| Cash Flows-Financing Activities | ||||
| Sale and Purchase of Stock | $12,675,000 | $1,555,000 | $727,000 | $1,272,000 |
| Net Borrowings | -$2,488,000 | $798,000 | $89,000 | $3,385,000 |
| Other Financing Activities | -- | -- | -- | -- |
| Net Cash Flows-Financing | $9,973,000 | $1,529,000 | $574,000 | $4,415,000 |
| Effect of Exchange Rate | $334,000 | $8,000 | -$23,000 | $40,000 |
| Net Cash Flow | $13,118,000 | $2,506,000 | $312,000 | $198,000 |
| Period Ending: | 12/31/2020 | 12/31/2019 | 12/31/2018 | 12/31/2017 |
|---|---|---|---|---|
| Current Assets | ||||
| Cash and Cash Equivalents | $19,384,000 | $6,268,000 | $3,879,000 | $3,523,237 |
| Short-Term Investments | -- | -- | -- | -- |
| Net Receivables | $1,886,000 | $1,324,000 | $949,000 | $515,381 |
| Inventory | $4,101,000 | $3,552,000 | $3,113,000 | $2,263,537 |
| Other Current Assets | $1,346,000 | $959,000 | $366,000 | $268,365 |
| Total Current Assets | $26,717,000 | $12,103,000 | $8,307,000 | $6,570,520 |
| Long-Term Assets | ||||
| Long-Term Investments | -- | -- | $422,000 | $456,652 |
| Fixed Assets | $17,396,000 | $14,061,000 | $13,420,000 | $14,144,126 |
| $207,000 | $198,000 | $68,000 | $60,237 | |
| Intangible Assets | $313,000 | $339,000 | $282,000 | $361,502 |
| Other Assets | $7,515,000 | $7,608,000 | $7,241,000 | $7,062,335 |
| Deferred Asset Charges | -- | -- | -- | -- |
| Total Assets | $52,148,000 | $34,309,000 | $29,740,000 | $28,655,372 |
| Current Liabilities | ||||
| Accounts Payable | $9,906,000 | $6,993,000 | $5,499,000 | $4,121,616 |
| Short-Term Debt / Current Portion of Long-Term Debt | $2,132,000 | $1,785,000 | $2,568,000 | $896,549 |
| Other Current Liabilities | $2,210,000 | $1,889,000 | $1,926,000 | $2,656,505 |
| Total Current Liabilities | $14,248,000 | $10,667,000 | $9,993,000 | $7,674,670 |
| Long-Term Debt | $9,556,000 | $11,634,000 | $9,404,000 | $9,418,319 |
| Other Liabilities | $3,330,000 | $2,691,000 | $3,039,000 | $4,752,192 |
| Deferred Liability Charges | $1,284,000 | $1,207,000 | $991,000 | $1,177,799 |
| Misc. Stocks | $850,000 | $849,000 | $834,000 | $997,346 |
| Minority Interest | $655,000 | $643,000 | $556,000 | $397,804 |
| Total Liabilities | $29,268,000 | $27,048,000 | $24,261,000 | $24,020,326 |
| Stock Holders Equity | ||||
| Common Stocks | $1,000 | $1,000 | -- | $169 |
| Capital Surplus | -$5,399,000 | -$6,083,000 | -$5,318,000 | -$4,974,299 |
| -- | -- | -- | -- | |
| $27,260,000 | $12,736,000 | $10,249,000 | $9,178,024 | |
| Other Equity | $363,000 | -$36,000 | -$8,000 | $33,348 |
| Total Equity | $22,225,000 | $6,618,000 | $4,923,000 | $4,237,242 |
| Total Liabilities & Equity | $52,148,000 | $34,309,000 | $29,740,000 |
$28,655,372 |
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