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: 4. Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 5. Calculate the Dividends per Share and Earnings per Share for each year for Brown Company. 6. Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity. Life-Positive's Account 2021 ($)BalancesAccounts Payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.0019,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Cost of goods sold2022 ($)Sales 58,000.00 62,500.00Short-term Notes Payable 2,890.00 2,340.00The tax rate is 32%Shares outstanding 85,000.00 90,000.00

Written financial statements provide information about a company's operations and financial…

Answered: You work as a freelance accounting…

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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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:

4. Calculate the cash flow from assets, cash flow to creditors,
and cash flow to stockholders for 2022.

5. Calculate the Dividends per Share and Earnings per Share for
each year for Brown Company.

6. Briefly comment on the company’s cash flows for 2022 in light
of an expansion plan which will be financed by both debt and
equity.

Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Cost of goods sold
2022 ($)
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00

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