Column1

Solution A

Solution B

Solution C

Solution D
 Column2 Column3
Teeswater Corp. 2012
Statement of Comprehensive Income
Sales $ 196,000.00
cost $ 104,000.00
Depreciation $ 9,100.00
Other expenses $ 6,800.00
EBIT (EARNING BEFORE INTEREST AND TAXES) $ 76,100.00
Interest $ 14,800.00
EARNING BEFORE TAXES $ 61,300.00
Taxes $ 21,455.00
Net Income $ 39,845.00

Teeswater Corp. 2012 Operating Cash Flow

EBIT $ 76,100.00
Add - Depreciation $ 9,100.00
Less - Taxes $ 21,455.00
Operating Cash Flow $ 63,745.00

Teeswater Corp. 2012 Cash Flow to creditors

Interest Paid $ 14,800.00
Less - Net new borrowing $ (7,300.00)
Cash Flow to creditors $ 22,100.00

Teeswater Corp. 2012 Cash Flow to shareholders

Dividend Paid $ 10,400.00
Less - Net New Equity $ 5,700.00
Cash Flow to Shareholders $ 4,700.00

Cash Flow From Asset = CFC + CFS $ 26,800.00

To calcute change in NWC we need net capital spending

Net Capital Spending= Depreciation+Increase in NFA=9100+27000=$36100

Teeswater Corp. 2012 Change in NWC

Operating Cash Flow $ 63,745.00
Less - Net Capital Spending $ 36,100.00
Less - Change in NWC
Cash Flow From Asset $ 26,800.00

Therefore Change in NWC -

63745 - 36100 - x = 26800
i.e x = (63745 - 36100) - 26800
i.e x = 845
Solving for the change in NWC gives $845 meaning
the company increased its NWC by $845.
 Statement o

Assets
Current assets
Cash
Account receivable
Inventory

Fixed Asset
Patents and Copyright
Tangible Assets
Total Assets

Shareholders Equity=$4176-$3694=$4
 Statement of financial position as of 2012
($ thousand's)
2012 Liabilities 2012
Current Liabilities
$195 Account payables $405
$137 Notes Payables $160
$264 Long term Liabilities
Long term debt $1,195
Accoumulated retained earning $1,934
$780 Shareholders equity $482
$2,800
$4,176 Total Liabilities $4,176

s Equity=$4176-$3694=$482