.Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 2.Calculate the Dividends per Share and Earnings per Share for each year for Life-Positive’s Company.
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
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%
A balance sheet is a type of financial statement that shows the state of a company's finances at a certain moment in time. The balance sheet displays the company's assets, liabilities, and the difference between the two (equity).
The fundamental
Liabilities + Equity Equals Assets
According to this formula, a company's total assets must equal its entire liabilities and equity. The assets of the business are listed on the left side of the balance sheet, and its liabilities and equity are listed on the right side.
1)
|
Life Positive's Account |
||
|
Balance Sheet |
||
|
Assets |
2021 ($) |
2022 ($) |
|
Cash |
23450 |
28600 |
|
Accounts Receivable |
15700 |
12340 |
|
Inventory |
7050 |
8640 |
|
Net Fixed Assets |
41500 |
48000 |
|
Total Assets |
87700 |
97580 |
|
Liabilities and Owner's Equity |
|
|
|
Accounts Payable |
24600 |
21250 |
|
Short term Notes Payable |
2890 |
2340 |
|
Long term Debt |
28000 |
30000 |
|
Common Stock |
17290 |
20000 |
|
|
14920 |
23990 |
|
Total Liabilities and Owner's Equity |
87700 |
97580 |
2)
|
Life Positive's Account |
||
|
Income Statement |
||
|
Description |
2021 ($) |
2022 ($) |
|
Sales |
58000 |
62500 |
|
Less: Cost of Goods Sold |
-19700 |
-23000 |
|
Gross Profit |
38300 |
39500 |
|
Deprecaition Expenses |
-3090 |
-4590 |
|
Other Expenses |
-2400 |
-2800 |
|
Earnings Before Interest and Taxes |
32810 |
32110 |
|
Interest Expenses |
-2340 |
-2890 |
|
Earnings Before Taxes |
30470 |
29220 |
|
Income Tax (32%) |
-9750 |
-9350 |
|
Net Earnings |
20720 |
19870 |
3i)
Calculation of Net New Equity for the year 2022
Formula
= Ending Common Stock - Beginning Common Stock
Here
Ending Common Stock = $20000
Beginning Common Stock = $ 17290
Net New Equity for the year 2022 = $ 20000 - $ 17290
= $ 2710
ii)
Calculation of Change in Net
Formula
= Net working Capital for Current Period - Net working capital for previous period
Here
Net working Capital for Current period = ($28600+12340+8640) - ($21250 - $2340)
= $49580 - $23590
= $ 25990
Net working Capital for Previous Period = ($23450+$15700+$7050) - ($24600+$2890)
= $ 46200 - $ 27490
= $ 18710
Changes in Net Working Capital for 2022 = $ 25990 - $ 18710
= $ 7280
iii)
Calculation of Net Capital Spending for the year 2022
Formula
= Ending value of Net Fixed Assets - Beginning Value of net Fixed Assets + Depreciation Expenses for the current period
= $ 48000 - $41500 + $ 4590
= $ 11090
iv)
Calculation of Operating
Formula
= Net Income + Non Cash Expenses (Depreciation) + Decrease in Accounts receivable + Increase in Inventory - Decrease in Accounts Payable - Decrease in Short term liabilities
Here
= $ 19870 + 4590 + 3360 - 1590 - 3350 - 550
= $ 22330
1.Calculate the cash flow from assets, cash flow to creditors,
and cash flow to stockholders for 2022.
2.Calculate the Dividends per Share and Earnings per Share for
each year for Life-Positive’s Company.
3.
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