Chapter 1 Problem 14
a. Prepare a sources and uses statement for Whistler Corp. for fiscal year 2014.
b. Prepare a cash flow statement for Whistler Corp. for fiscal year 2014.
Whistler Corporation Financial Statements
Balance Sheet: 2013 2014
Current Assets
Cash $47,500 $76,700
Accounts Receivable $0 $43,100
Inventories $49,000 $36,500
Total current assets $96,500 $156,300
Noncurrent Assets
Land $15,800 $15,800
Buildings $103,600 $164,600
Equipment $63,200 $65,500
Patent $5,200 $5,200
Accumulated depreciation -$10,800 -$12,200
Total noncurrent assets $177,000 $238,900
Total Assets $273,500 $395,200
Current Liabilities
Accounts payable to suppliers $48,000 $25,900
Income taxes payable $0 $10,700
Total current liabilities $48,000 $36,600
Noncurrent Liabilities
Long term debt $100,100 $134,000
Total liabilities $148,100 $170,600
Shareholders’ Equity
Common Stock $125,400 $177,400
Retained Earnings $0 $47,200
Total shareholders’ equity $125,400 $224,600
Total Liabilities and Shareholders Equity $273,500 $395,200
Income statement: 2014
Sales $165,300
Cost of goods sold
-46,200
Depreciation expenses
-1,400
Net interest expenses
-2,000
Other expenses
-5,600
Income before taxes
110,100
Provision for income taxes
-40,900
Net income
$69,200
Dividends paid
22,000
Additions to retained earnings
$47,200
Chapter 1 Problem 14 Suggested Answers
a. Prepare a sources and uses statement for Whistler Corp. for fiscal year 2014.
b. Prepare a cash flow statement for Whistler Corp. for fiscal year 2014.
Whistler Corporation Financial Statements
Balance Sheet: 2013 2014 Changes a. Sources and Uses Statement:
Current Assets
Cash $47,500 $76,700 $29,200
Sources of cash
Accounts Receivable $0 $43,100 $43,100 Reduction in inventories $12,500
Inventories $49,000 $36,500 ($12,500) Increase in accumulated depreciation 1,400
Total current assets $96,500 $156,300 Increase in taxes payable 10,700
Noncurrent Assets Increase in long-term debt 33,900
Land $15,800 $15,800 $0 Increase in common stock 52,000
Buildings $103,600 $164,600 $61,000 Increase in retained earnings 47,200
Equipment $63,200 $65,500 $2,300 Total sources of cash $157,700
Patent $5,200 $5,200 $0
Accumulated depreciation -$10,800 -$12,200 ($1,400)
Uses of cash
Total noncurrent assets $177,000 $238,900 Increase in cash $29,200
Total Assets $273,500 $395,200 Increase in accounts receivable 43,100
Increase in buildings 61,000
Current Liabilities Increase in equipment 2,300
Accounts payable to suppliers $48,000 $25,900 ($22,100) Reduction in accounts payable 22,100
Income taxes payable $0 $10,700 $10,700 Total uses of cash $157,700
Total current liabilities $48,000 $36,600 ($11,400)
Noncurrent Liabilities b.
Cash flow statement:
Long term debt $100,100 $134,000 $33,900
Total liabilities $148,100 $170,600 $22,500 Operating activities 2014
Shareholders’ Equity Net income $69,200
Common Stock $125,400 $177,400 $52,000 Add back depreciation 1,400
Retained Earnings $0 $47,200 $47,200 (Increase) decrease in Receivables -43,100
Total shareholders’ equity $125,400 $224,600 $99,200 (Increase) decrease in inventories 12,500
Total Liabilities and Shareholders Equity $273,500 $395,200 (Increase) decrease other current assets
Increase (decrease) in accounts payable -22,100
Increase (decrease) in income taxes payable 10,700
Income statement: 2014 Cash flow from operations 28,600
Sales
$165,300 Investing activities
Cost of goods sold -46,200 (Increase) decrease in building -61,000
Depreciation expenses -1,400 (Increase) decrease in equipment -2,300
Net interest expenses -2,000 Cash flow from investing -63,300
Income before taxes 110,100 Increase (decrease) in long-term debt 33,900
Provision for income taxes -40,900 Increase (decrease) in common stock 52,000
Net income $69,200 Subtract dividends paid -22,000
Dividends paid 22,000 Cash flow from financing 63,900
Net change in cash 29,200
Beginning cash balance 2011 47,500
Ending cash balance 2011 $76,700