Accounting Exercises - Balance Sheet and Income Statement
Accounting Exercises - Balance Sheet and Income Statement
2. Your company has a balance of $900,000 in accounts receivable. You estimate that 5%
of this will not be collectable. Show the journal entry.
3. Your company bought a machine for $50,000 on 1/1/98. You estimate it has a useful life
of 5 years, and you depreciate it linearly. What is your journal entry on 12/31/98?
4. On 1/1/98, your company signed a contract to rent a building for 1 year at $2000 per
month, payable in advance.
a) Show your journal entry on 1/1/98.
5. On 1/1/98, your retail store had a beginning inventory of $150,000. During the year, it
purchased goods for $700,000. On 12/31/98, you conducted an inventory, and calculated
it to be $50,000. What were your cost of goods sold for the year?
1
Beginning inventory $ 150,000
+ Purchases 700,000
- Ending inventory 50,000
6. You have a manufacturing company in Germany. In your income statement you have
Labor DM 550,000; Material DM 400,000; Increase in finished goods inventory of
DM 100,000. How would you show this under GAAP?
+ Labor 550,000
+ Material 400,000
- Increase in inventory 100,000 (a decrease in inventory is added)
= Cost of goods sold $ 850,000
7. This year, your company spent $1,500,000 to develop a new, low calorie beer. You
believe it will be very profitable. What is your journal entry?
Dr. Expenses
$ 1,500,000
Cr. Cash
$ 1,500,000
(The entry itself is not important. What is important is that these expenses cannot be
capitalized)
8. Your company buys the patent for a new, low calorie beer from the Whalepise brewery.
What is your journal entry?
Dr. Patents
$ 1,500,000
Cr. Cash
$ 1,500,000
(Here, it can be capitalized)
9. Your company buys Gabby Telecom for $1 billion. Gabby Telecom’s assets are $300
million and its liabilities $100 million. What is its book value, and what is your journal
entry?
Dr. Assets $
300,000,000
Dr. Goodwill $
800,000,000
Cr. Liabilities
$ 100,000,000
2
Cr. Cash
$ 1,000,000,000
10. Your company buys $50,000 of parts from a supplier on account. What is your journal
entry?
(Note: if this is a manufacturing company, and the parts are included in the final product,
it would be called “raw materials inventory”)
Accounting Exercises – Balance Sheet and Income Statement
11. It is 11/30/98. Your wage expense for November is estimated at $150,000, but you only
paid out $100,000. Show the entry.
12. On 1/1/98, you rent out a building to another company for 1 year at $3000 per month.
You demanded and received payment for the full year in advance.
a) What is your journal entry on 1/1/98?
Dr. Cash
$ 36,000
Cr. Rent received in advance
$ 36,000
(Note: this is a liability)
13. Your company had net income of $350,000 in 1998, and paid out dividends of $300,000.
Retained earnings were $400,000 on 1/1/98. What are they on 12/31/98 after all closing
entries?
3
14. Your new company, Stealemblind Inc., issued 1500 shares of stock with a par value of
$100. Total receipts from the issue were $250,000. What is your journal entry?
Dr. Cash $
250,000
Cr. Capital stock (1500 shares at $100) $
150,000
Cr. Additional paid-in capital
$ 100,000
15. Your company makes computers. Classify the following as revenue, expense, gain, loss,
and give the amount.
a) You sell computers on account for $50,000. You have not received the money yet,
but are confident you will get it. revenue
b) You sell a Picasso painting for $3,000,000 which you are carrying on your books at
$1,300,000. gain
c) You accrue wages for November of $200,000. expense
d) You sell a building, which has a book value of $500,000, for $300,000. loss
Accounting Exercises – Balance Sheet and Income Statement
16. You have a machine which you carry on your books for $5000. It breaks down. You
estimate it would cost more to fix it than to buy a new one.
a) Does the machine meet the definition of an asset? No. No future benefit
b) What should you do to adjust your books?
Write it off
Dr. Expense
$ 5,000
Cr. Machinery
$ 5,000
17. Miss Germany calls you up and asks for $1,500,000 for her favorite charity (herself). Is
this a liability?
No. There is neither a legal nor a moral obligation to pay.
4
Accounting Exercises – Cost of Goods Sold – Answers
1. The accountant at Wiserbud Retail Stores Inc. gave you the following information
concerning the only product it sells, Wiserbud Beer:
What is cost of goods sold? Assuming the inventory account on 1/1/1999 had a
balance of $20,000, and the purchases account on 12/31/1999 had a balance of
$100,000, what journal entry do you make to close out the books?
Units Value
Beginning inventory: 2,000 $20,000
+ Purchases 10,000 100,000
- Ending inventory 3,000 30,000
= Cost of goods sold 9,000 90,000
2. The accountant at Wiserbud Retail Stores Inc. gave you the following information
concerning the only product it sells, Wiserbud Beer:
Using FIFO, assuming the inventory account on 1/1/1999 had a balance of $20,000,
and the purchases account on 12/31/1999 had a balance of $150,000, what journal
entry do you make to close out the books?
a. FIFO
5
Accounting Exercises – Cost of Goods Sold – Answers
b. LIFO
c. weighted average
3. The accountant at Wiserbud Retail Stores Inc. gave you the following information
concerning the only product it sells, Wiserbud Beer:
Using FIFO, assuming the inventory account on 1/1/1999 had a balance of $20,000,
and the purchases account on 12/31/1999 had a balance of $150,000, what journal
entry do you make to close out the books?
a. FIFO
b. LIFO
6
Accounting Exercises – Cost of Goods Sold – Answers
c. weighted average
5. The accountant at Wiserbud Manufacturing Inc. gave you the following information
concerning its product, Wiserbud Beer:
7
Accounting Exercises – Cost of Goods Sold – Answers
5. cont’d
Assume Wiserbud Manufacturing Inc. uses the FIFO inventory valuation method.
a. Show the journal entries to close out the account.
b. In this case, would it matter if Wiserbud used LIFO? Weighted average? Explain.
a. Journal entries
Dr. CGS $990,000
Cr. Direct materials $ 150,000
Cr. Direct labor 200,000
Cr. Variable overhead 250,000
Cr. Fixed overhead 300,000
Cr. Inventory 90,000
6. The accountant at Wiserbud Manufacturing Inc. gave you the following information
concerning its product, Wiserbud Beer:
Assume Wiserbud Manufacturing Inc. uses the FIFO inventory valuation method.
a. Show the journal entries to close out the account.
b. What would be the journal entries if Wiserbud used LIFO? Weighted average?
a. FIFO
CGS = BI+P-EI = 20,000 + 100,000 - 30,000 = 90,000 cases
20,000 x $8.00 + 70,000 x $9.00 = $790,000
EI = 30,000 x $9.00 = $270,000
BI = 20,000 x $8.00 = $160,000 Change = $110,000
8
Accounting Exercises – Cost of Goods Sold – Answers
a. Journal entries
Dr. CGS $790,000
Dr. Inventory 110,000
Cr. Direct materials $ 150,000
Cr. Direct labor 200,000
Cr. Variable overhead 250,000
Cr. Fixed overhead 300,000
b. LIFO
Weighted average
$1,060,000 = $8.83333333333333
120,000 units
9
1. All else equal, what would you rather have: a 10% increase in sales price with no change
in volume, or a 10% increase in sales volume with no change in sales price? Include the
effects of each on revenue and profit, and which would have a greater increase or
decrease on cash flows. Explain why.
An increase in the sales price, since it causes a much larger increase in profits
even though revenue remains the same. Reason: sales volume increase would
also increase cost of goods sold and other variable expenses, while a sales price
increase only causes the REVENUE-driven variable expenses to increase.
2. All else equal, what would you rather have: a 10% decrease in sales price with no change
in volume, or a 10% decrease in sales volume with no change in sales price? Include the
effects of each on revenue and profit, and which would have a greater increase or
decrease on cash flows. Explain why.
Do this yourself!
3. If sales price stays the same, but costs increase by 10% due to inflation, will net income
decrease by 10%, more than 10%, or less than 10%? Explain.
Do this yourself!
Revenue-driven variable expenses go up with sales price. The way Tracy uses
them, they do not increase with volume (which is rather sloppy English, since an
increase in volume increases revenue also). Example of a revenue-driven but
not volume-driven expense: credit card charges
10
Use this financial statement for the following questions:
Merchandising Co.
Volume: 500,000
Income Statement Per unit Totals
8. What are earnings before taxes if sales price increases by 10% and sales volume stays the
same?
9. What are earnings before taxes if sales volume increases by 10% and sales price stays the
same?
1,025,000 + 500,000 (revenue) - 300,000 (CGS) – 25,000 (var. exp) =
1,200,000
11
10. What are earnings before taxes if costs increase by 10% and everything else stays the
same?
11. What are earnings before taxes if sales volume increases by 10% and sales price falls by
10%?
12. What are earnings before taxes if sales price increases by 10% and sales volume falls by
10%?
12
1. On July 1, 2001, Greg’s Beer Emporium Inc. buys 1000 shares of Wiserbud Beer at $60
per share. They are classified as trading securities. By September 30, the price of
Wiserbud Beer has dropped to $50. The shares have not been sold, and GBE issues
quarterly financial statements.
July 1:
Dr. Marketable securities $60,000
Cr. Cash $60,000
September 30:
Dr. Unrealized loss on marketable $10,000
securities
Cr. Marketable securities $10,000
b. What is the effect on pretax income for the third quarter of 2001? What is the balance in
the marketable securities account on September 30, 2001? (Assume it consists solely of
Wiserbud Beer stock.)
Pretax income for the quarter has fallen by $10,000. The balance in marketable securities is
now $50,000.
c. If GBE used the lower-of-cost-or-market principle (which is not allowed under GAAP
for marketable securities) with recognition of unrealized gains and losses, what would be
GBE’s journal entry on July 1 and September 30? What would be the effect on pretax
income? What would be the balance in the marketable securities account on September
30, 2001?
Same as above (b). In other words, marketable securities would be written down to the new
market value of $50,000.
2. Continued from question 1. GBE Inc. holds on to its Wiserbud stock. By December 31,
the stock has risen to $80 per share.
December 31:
Dr. Marketable securities $30,000
Cr. Unrealized gain on marketable $30,000
securities
b. What is the effect on pretax income for the fourth quarter of 2001? What is the balance in
the marketable securities account on December 31, 2001? What is the effect on pretax
income for the year?
Pretax income for the fourth quarter of 2001 rises $30,000. The balance in the marketable
securities account is now $80,000. Pretax income for the entire year goes up $20,000.
13
c. If GBE used the lower-of-cost-or-market principle (which is not allowed under GAAP
for marketable securities) with recognition of unrealized gains and losses, what would be
GBE’s journal entry on December 31? What would be the effect on pretax income for the
fourth quarter? For the entire year? What would be the balance in the marketable
securities account on December 31, 2001?
December 31:
Dr. Marketable securities $10,000
Cr. Unrealized gain on marketable $10,000
securities
Pretax income for the fourth quarter would rise $10,000. Income for the entire year would be
unchanged. The balance in the marketable securities account would be $60,000.
3. On July 1, 2001, Greg’s Beer Emporium Inc. buys 1000 shares of Wiserbud Beer at $60
per share. They are classified as trading securities. By September 30, the price of
Wiserbud Beer has risen to $90. The shares have not been sold, and GBE issues quarterly
financial statements.
July 1:
Dr. Marketable securities $60,000
Cr. Cash $60,000
September 30:
Dr. Marketable securities $30,000
Cr. Unrealized gain on marketable $30,000
securities
b. What is the effect on pretax income for the third quarter of 2001? What is the balance in
the marketable securities account on September 30, 2001?
Pretax income for the quarter has risen $30,000. The balance in marketable securities is now
$90,000.
c. If GBE used the lower-of-cost-or-market principle (which is not allowed under GAAP
for marketable securities) with recognition of unrealized gains and losses, what would be
GBE’s journal entry on September 30? What would be the effect on pretax income?
What would be the balance in the marketable securities account on September 30, 2001?
No journal entry. In other words, marketable securities would not be written up, and there
would be no unrealized gain. The balance in marketable securities is $60,000.
4. Continued from question 3. GBE Inc. holds on to its Wiserbud stock. By December 31,
the stock has fallen to $50 per share.
On December 31:
14
Dr. Unrealized loss on marketable $40,000
securities
Cr. Marketable securities $40,000
b. What is the effect on pretax income for the fourth quarter of 2001? What is the balance in
the marketable securities account on December 31, 2001? What is the effect on pretax
income for the year?
Pretax income for the fourth quarter of 2001 drops $40,000. The balance in the marketable
securities account is now $50,000. Pretax income for the entire year falls $10,000.
c. If GBE used the lower-of-cost-or-market principle (which is not allowed under GAAP
for marketable securities) with recognition of unrealized gains and losses, what would be
GBE’s journal entry on December 31? What would be the effect on pretax income for the
fourth quarter? For the entire year? What would be the balance in the marketable
securities account on December 31, 2001?
On December 31:
Dr. Unrealized loss on marketable $10,000
securities
Cr. Marketable securities $10,000
Pretax income for the fourth quarter and the entire year would fall $10,000. The balance in
the marketable securities would be $50,000.
5. GBE issues quarterly financial statements. On July 1, 2001, Greg’s Beer Emporium Inc.
buys 1000 shares of Wiserbud Beer at $100 per share. They are classified as trading
securities. By September 30, the price of Wiserbud Beer rose to $120. By December 31,
the shares have fallen to $90. The shares have not been sold.
Assuming GBE made the appropriate journal entries on July 1 and September 30, what
would be the journal entry on December 31? What would be the balance in the
marketable securities account on December 31? What would be the effect on pretax
profit for the third quarter? For the fourth quarter? For the entire year?
December 31:
Dr. Unrealized loss on marketable $30,000
securities
Cr. Marketable securities $30,000
On December 31, the balance in the marketable securities account is $90,000. The effect on
pretax profit for the third quarter is +$20,000, for the fourth quarter -$30,000, for the
year -$10,000.
15
6. GBE issues quarterly financial statements. On July 1, 2001, Greg’s Beer Emporium Inc.
buys 1000 shares of Wiserbud Beer at $100 per share. They are classified as trading
securities. By September 30, the price of Wiserbud Beer dropped to $80. By December
31, the shares have risen to $120. The shares have not been sold.
Assuming GBE made the appropriate journal entries on July 1 and September 30, what
would be the journal entry on December 31? What would be the balance in the
marketable securities account on December 31? What would be the effect on pretax
profit for the third quarter? For the fourth quarter? For the entire year?
December 31:
Dr. Marketable securities $40,000
Cr. Unrealized gain on marketable $40,000
securities
On December 31, the balance in the marketable securities account is $120,000. The effect on
pretax profit for the third quarter is -$20,000, for the fourth quarter +$40,000, for the year
+$20,000.
16
Airlines
Exercise
2010
EasyJet
EasyJet
€
RyanAir
Lufthansa
EasyJet
Total
assets
4.002,5
4.600,6
7.563,4
29.320,0
3.673,0
Equity
1.500,7
1.724,9
2.848,6
8.340,0
1.307,3
Debt
1.212,0
1.393,1
2.956,2
7.184,0
1.120,6
Total
revenue
2.973,1
3.417,4
2.988,1
27.324,0
2.666,8
CGS
2.707,3
3.111,8
2.441,2
23.546,0
2.526,2
SGA
92,2
106,0
144,8
2.538,0
80,5
EBITDA
252,3
290,0
637,5
2.922,0
119,9
Operating
income
173,6
199,5
402,1
1.240,0
60,1
Net
income
121,3
139,4
305,3
1.143,0
71,2
Debt/equity
0,8076
1,0378
0,8614
Op
inc./revenue
0,0584
0,1346
0,0454
ROE
0,0808
0,1072
0,1371
Core
ratios:
Asset
turnover:
sales/assets
0,7428
0,3951
0,9319
Asset
leverage:
assets/equity
2,6671
2,6551
3,5156
ROS:
/Net
income/revenue
0,0408
0,1022
0,0418
Check:
=
ROE?
0,0808
0,1072
0,1371
Is
off-‐balance
sheet
financing
significant?
Operating
lease
aircraft
99,4
86,5
95,5
227
Op
lease
aircraft/revenue
0,0253
0,0320
0,0083
CGS/Sales
0,9106
0,8170
0,8617
SGA/Sales
0,0310
0,0485
0,0929
1EUR
=
0,87
GBP
17
Automotove
Exercise
-‐
Automotive
Only
2010
GM
Ford
Daimler
VW
GM
Fo
Automotive
assets
127.966,0
64.606,0
67.959,0
136.295,0
Automotive
liabilities
94.380,0
74.904,0
34.871,0
107.340,0
Automotive
Debt
4.630,0
19.077,0
-‐1.358,0
15.783,0
Automotive
sales
135.142,0
119.280,0
84.973,0
121.697,0
104.116,0
CGS
118.792,0
104.451,0
63.912,0
103.013,0
112.195,0
SGA
11.446,0
11.909,0
14.634,0
15.500,0
12.167,0
EBITDA
11.827,0
7.499,0
9.791,0
13.273,0
-‐8.862,0
Operating
income
4.904,0
2.920,0
6.427,0
3.184,0
-‐20.246,0
CGS/sales
0,879
0,876
0,752
0,846
1,078
SGA/sales
0,085
0,100
0,172
0,127
0,117
Op
inc./sales
0,036
0,024
0,076
0,026
-‐0,194
Asset
turnover
sales/assets
1,056
1,846
1,250
0,764
ROE
Core
ratios:
Asset
turnover:
sales/assets
Asset
leverage:
assets/equity
ROS:
/Net
income/revenue
Check:
=
ROE?
Is
off-‐balance
sheet
financing
significant?
18
Automotove
Exercise
-‐
Consolidated
2010
GM
$000
Ford
$000
Daimler
€000
VW
€000
GM
$000
For
Total
assets
138.898
164.687
135.830
199.393
136.295
Equity
37.159
-‐642
37.953
48.712
21.957
Debt
4.630
103.988
53.682
77.011
15.783
Total
revenue
135.592
128.954
97.761
126.875
104.589
CGS
118.792
104.451
74.988
105.431
112.195
SGA
11.716
11.909
15.499
14.303
13.417
EBITDA
12.007
18.178
10.638
17.230
-‐9.639
Operating
income
5.084
12.594
7.274
7.141
-‐21.023
Net
income
4.668
6.561
4.498
7.226
-‐23.465
Debt/equity
0,1246
-‐161,9751
1,4144
1,5809
0,7188
Op
inc./revenue
0,0375
0,0977
0,0744
0,0563
-‐0,2010
ROE
0,1256
-‐10,2196
0,1185
0,1483
-‐1,0687
Core
ratios:
Asset
turnover:
sales/assets
0,9762
0,7830
0,7197
0,6363
0,7674
Asset
leverage:
assets/equity
3,7379
-‐256,5218
3,5789
4,0933
6,2074
ROS:
/Net
income/revenue
0,0344
0,0509
0,0460
0,0570
-‐0,2244
Check:
=
ROE?
0,1256
-‐10,2196
0,1185
0,1483
-‐1,0687
Is
off-‐balance
sheet
financing
significant?
Operating
lease
payments
604
600
491
630
624
Capitalize
(1/3,
6%)
3355,6
3333,3
2727,8
3500,0
3466,7
Revised
debt
7985,6
107321,3
56409,8
80511,0
19249,7
Revised
debt/equity
0,2149
-‐167,1672
1,4863
1,6528
0,8767
CGS/Sales
0,8761
0,8100
0,7671
0,8310
1,0727
SGA/Sales
0,0864
0,0924
0,1585
0,1127
0,1283
Op
inc./Sales
0,0375
0,0977
0,0744
0,0563
-‐0,2010
19
1. On 12/31/99, your bookkeeper provided you the following information.
Operating expenses (exc. depreciation) 350,000.00 Property. plant and equipment 1,500
Depreciation expense 100,000.00 Accumulated depreciation 600
Operating earnings 250,000.00 Net of depreciation 900
Capital stock 50
Retained earnings 295
1a. How much did your company pay out in dividends in 1999?
RE 1/1 200,000
+ net income 125,000
- dividends 30,000
RE 12/31 295,000
1c. Using the indirect method, write your statement of cash flows for 1999.
21
Capital stock 60
Retained earnings 300
2a. How much did your company pay out in dividends in 1999?
RE 1/1 200,000
+ net income 150,000
- dividends 50,000
RE 12/31 300,000
2c. Using the indirect method, write your statement of cash flows for 1999.
22
Nike
2001 % 2000 % 1999
Net sales 9488,8 100,00% 8995,1 100,00% 8776,9
Cost of goods sold 5784,9 60,97% 5403,8 60,07% 5493,5
Gross margin 3703,9 39,03% 3591,3 39,93% 3283,4
Selling, general and
administrative expense 2689,7 28,35% 2606,4 28,98% 2426,6
“
Ratio Analysis Exercise
Chapter 14 of the Ferrell & Hirt textbook give extracts from Nike's income statement
(p. 394 and below) and balance sheet (p. 398). Calculate the following ratios:
A common size income statement expresses the elements of the income statement
23
as a percentage of revenue. Complete the statement for 2000 and 2001.
Earnings before taxes (EBT) 921,4 9,7% 919,2 10,2% 746,1 8,5%
Income taxes 331,7 3,5% 340,1 3,8% 294,7 3,4%
Questions:
1. Did Nike's profitability improve from 2000 to 2001? From 1999 to 2000?
2000 to 2001: Overall profits went up a bit, as did EPS. But profit margin went
down, as did ROE
1999 to 2000: Overall profits went up as did every measure of profitability.
24
Sensitivity Exercise
Volume: 100.000
Per unit Total %
Sales 10,00 1.000.000,00 100,00%
Cost of goods sold 6,00 600.000,00 60,00%
Gross margin 4,00 400.000,00 40,00%
Questions:
4. Compare revenue and EBIT for the 10% volume increase with those of the
10% price increase
Both increase 10% to $1,100,000
5. How much would volume have to increase to have the same EBIT as with a
10% price increase?
220,000 = $2.5X - 130,000 Increase 40,000 to 140,000 (40%)
25
Sales 10,00 1.100.000,00
Cost of goods sold 6,00 660.000,00
Gross margin 4,00 440.000,00
Depreciation 30.000,00
Operating earnings (EBIT) 145.000,00 120000,00
Depreciation 30.000,00
Operating earnings (EBIT) 220.000,00 120000,00
26
Sportswear
Exercise
2010
Nike
Nike
EUR
Adidas
Puma
Nike
Nike
E
Total
assets
14.419,3
10.299,5
10.618,0
2.366,6
13.249,6
Equity
9.753,7
6.966,9
4.616,0
1.386,4
8.693,1
Debt
591,8
422,7
1.610,0
42,8
812,1
Total
revenue
19.014,0
13.581,4
12.090,0
2.725,5
19.176,1
CGS
10.213,6
7.295,4
6.260,0
1.361,6
10.571,7
SGA
6.326,4
4.518,9
4.936,0
1.057,1
6.149,6
EBITDA
2.869,5
2.049,6
1.164,0
372,7
2.838,1
Operating
income
2.474,0
1.767,1
894,0
306,8
2.454,8
Net
income
1.906,7
1.361,9
568,0
202,2
1.486,7
Debt/equity
0,0607
0,3488
0,0309
Op
inc./revenue
0,1301
0,0739
0,1126
ROS
0,1003
0,0470
0,0742
ROE
0,1955
0,1231
0,1458
Core
ratios:
Asset
turnover:
sales/assets
1,3186
1,1386
1,1517
Asset
leverage:
assets/equity
1,4783
2,3003
1,7070
ROS:
Net
income/revenue
0,1003
0,0470
0,0742
Check:
=
ROE?
0,1955
0,1231
0,1458
Nike
Adidas
Puma
Nike
CGS/Revenue
0,537162091
0,517783292
0,499578059
0,55
SGA/Revenue
0,332723257
0,408271299
0,387855439
0,3
0,130114652
0,073945409
0,112566502
0,12
27
12/31/2009 01.01.09
Operating activities
Net income 125.000,00
Add Dep 100.000,00
Sub Inc A/R -25.000,00
Add Dec Inv 50.000,00
Add Dec PPD 10.000,00
Add Inc A/P 5.000,00
Add Inc Acc exp 5.000,00
Sub Dec Tax Pay -5.000,00
Cash flow from Ops 265.000,00
Investing activities
Sub Inc PPE -250.000,00
Change in cash
BB 50.000,00
Plus increase 70.000,00
EB 120.000,00
12/31/2009 01.01.09
Cash 220.000,00 35.000,00
A/R 75.000,00 100.000,00 -25.000,00
Invty 350.000,00 300.000,00 50.000,00
Ppd exp 75.000,00 60.000,00 15.000,00
28
Inv Equ Sec 150.000,00 100.000,00 50.000,00
PPE 1.250.000,00 1.250.000,00 0,00
Acc dep 700.000,00 550.000,00
Net 550.000,00 700.000,00
1.420.000,00 1.295.000,00
Operating activities
Net income 150.000,00
Add Dep 150.000,00
Add Dec A/R 25.000,00
Sub Inc Inv -50.000,00
Sub Inc PPD -15.000,00
Add Inc A/P 30.000,00
Sub Dec Acc exp -10.000,00
Add Inc Tax Pay 10.000,00
Cash flow from Ops 290.000,00
Investing activities
Sub Inc Inv Equ Sec -50.000,00
Sub Inc PPE 0,00
Financing activities
Add Inc Cap Stk 20.000,00 Dividends: 50000
Sub Dec STNP -50.000,00
Add Inc LTNP 25.000,00 290.000,00
Sub Dividends paid -50.000,00 -50.000,00
-55.000,00 -55.000,00
185.000,00
Change in cash
BB 35.000,00
Plus increase 185.000,00
EB 220.000,00
29