You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32% 1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. 2. Prepare an income statement for 2021 and 2022 for the company. 3. For the year ending 2022, determine the Net New Equity, Change in Net Working Capital, Net Capital Spending and Operating Cash flow.
You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information:
Life-Positive’s Account
Balances 2021 ($) 2022 ($)
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
Cost of goods sold 19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
Shares outstanding 85,000.00 90,000.00
The tax rate is 32%
1. Prepare a
clearly showing information about each line item.
2. Prepare an income statement for 2021 and 2022 for the company.
3. For the year ending 2022, determine the Net New Equity, Change
in Net
flow.
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