Fina 470 Project Two - Check Point
Fina 470 Project Two - Check Point
Fina 470 Project Two - Check Point
Assignment:
Based on the following information prepare a three year income statemen, balance sheets and cash flow
budget.
Hint: Only the principle portion of loan payments are a financing activity.
Variable cost:
Amounts as a % of sales 65%
(Assumed that this is the variable portion of cost of goods sold)
2014 2015
Income Statements:
Balance Sheets:
Assets:
Cash 8,250 7,138
Accounts receivables 22,000 24,200
Inventory 38,500 42,350
Fixed assets 58,750 52,738
Deferred tax asset 570 503
Total assets 128,070 126,929
Liabilities:
Accounts Payable 27,500 30,250
Notes payable 19,500 19,500
47,000 49,750
Equity
Common stock 20,000 20,000
Additional paid in capital 30,000 30,000
Retained earnings 31,070 27,179
81,070 77,179
Investing Activities:
Proceeds from sale of fixed assets 5,000 5,500
Purchase of fixed assets (4,000) (5,000)
Cash provided (used) in investing activities 1,000 500
Financing activities:
Reduction in note payable (500) -
Proceeds from additional borrowings - -
Dividends paid (3,000) (4,000)
Cash provided (used) in financing activites (3,500) (4,000)
266,200
173,030
57,881
230,911
35,289
25,000
5,000
2,000
3,289
1,250
2,039
8,038
26,620
46,585
46,449
127,693
33,275
20,200
53,475
20,000
30,000
24,218
74,218
127,693
2,039
5,788
(2,420)
(4,235)
3,025
503
4,701
6,000
(5,500)
500
-
700
(5,000)
(4,300)
901
7,138
8,038
Austin Consolidated Industries - Product Line - FINA 470
2014 2015
Income Statements:
Sales 220,000
Cost of goods sold:
Variable 157,300
Fixed
Total cost of good sold
Gross Profit 24,500
Selling and administrative expense
Corporate overhead cost 4,000
Interest expense 1,000
Net income before tax (1,500)
Income taxes (benefit) 67
Net income (loss)
Balance Sheets:
Assets:
Cash 8,250
Accounts receivables
Inventory 42,350
Fixed assets 58,750
Deferred tax asset 503
Total assets
Liabilities:
Accounts Payable
Notes payable 19,500
47,000 49,750
Equity
Common stock 20,000
Additional paid in capital
Retained earnings 27,179
77,179
Investing Activities:
Proceeds from sale of fixed assets 5,500
Purchase of fixed assets
Cash provided (used) in investing activities 500
Financing activities:
Reduction in note payable -
Proceeds from additional borrowings
Dividends paid (4,000)
Cash provided (used) in financing activites (3,500)
57,881
230,911
25,000
2,039
26,620
127,693
33,275
53,475
30,000
5,788
503
(5,500)
700
8,038