Vivaldi SpA

Statement of Financial Position

December 31, 2019
Assets
Non-Current Assets

Long-term Investments
Investments in bonds $ 299.00
Investments in capital shares $ 277.00
Total Long-term Investments

Property, Plant, and Equipment

Land $ 260.00
Buildings $ 1,040.00
Less: Accumulated depreciation-buildings $ 352.00 $ 688.00
Equipment $ 600.00
Less: Accumulated depreciation-equipment $ 60.00 $ 540.00
Total Property, Plant, and Equipment

Intangible Assets :
Franchises $ 160.00
Patients $ 195.00
Total Intangible Assets
Total Non-current Assets

Current Assets
Inventories $ 597.00
Accounts receivable $ 435.00
Less: Allowance for doubtful accounts $ 25.00 $ 410.00
Trading securities (at market) $ 153.00
Cash $ 197.00
Total Current Assets
Total Assets

Equity and Liabilities

Equity
Share Capital-ordinary ($5 par) $ 1,000.00
Retained Earnings* $ 130.00
Accumulated other comprehensive income $ 80.00
Less: Treasury shares $ 191.00
Total Equity

Non-current liabilities
Bonds payable $ 1,000.00
Long-term notes payable $ 900.00
Provision for pensions $ 80.00
Total non-current liabilities $ 1,980.00

Current Liabilities
Short-term notes payable $ 90.00
Accounts payable $ 455.00
Dividends payable $ 136.00
Accrued liabilities $ 96.00
Total current liabilities $ 777.00
Total liabilities
Total equity and liabilities
$ 576.00

$ 1,488.00

$ 355.00
$ 2,419.00

$ 1,357.00
$ 3,776.00
$ 1,019.00

$ 2,757.00
$ 3,776.00
 LOPEZ INC.
Statement of Cash Flows
For the year Ended December 31, 2019
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation expense $ 6.00
Increase in accounts receivable $ 3.00
Increase in accounts payable $ 5.00
Net cash provided by operating activities
Cash flows from investing activities Purchase of equipment
Cash flows from financing activities issuance of common stock $ 20.00
Payment of cash dividends $ 13.00
Net cash provided by financing activities
Net increase in cash
Cash at beginning of year
Cash at end of year
$ 34.00

$ 8.00
$ 42.00
$ 17.00

$ 7.00
$ 32.00
$ 13.00
$ 45.00
A) OROZCO AG
Statement of Cash Flows
For the year Ended December 31, 2019
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation expense $ 27.00
Decrease in inventory $ 9.00
Increase in accounts receivable $ 16.00
Decrease in accounts payable $ 13.00
Net cash provided by operating activities
Cash flows from investing activities sale of land $ 39.00
Purchase of equipment $ 70.00
Net cash used by investing activities
Cash flows from financing activities payment of cash dividends
Net increase in cash
Cash at beginning of year
Cash at end of year
Noncash investing and financing activities were issue of ordinary shares to retire $50,000
of bonds outstanding

B) Current cash debt coverage ratio :

=
$112,000/(($34,0
00+$47,000)/2)
= 2.77 to 1

Cash debt coverage ratio :

= $112,000 ÷($184,000+
$247,000)/2
= 0.52 to 1

Free Cash Flow Analysis

Net cash provided by operating activities $ 112.00
Less: Purchase of equipment $ 70.00
Dividends $ 40.00
Free cash flow $ 2.00
Orozco has acceptable liquidity. Its financial flexibility is good. It might be noted that it
substantially reduced its long-term debt in 2019 which will help its financial flexibility
$ 105.00

$ 7.00
$ 112.00

$ 31.00
$ 40.00
$ 41.00
$ 22.00
$ 63.00
A) CHEKOV CORPORATION'S
Statement of Cash Flows
For the year Ended December 31, 2019
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation expense
Patent amortization
Loss on sale of equipment
Increase in Current liabilities
Increase in Current assets (other than cash)
Net cash provided by operating activities

Cash flows from investing activities sale of equipment

Addition to building
Investment in debt securities
Net cash used by investing activities

Cash flows from financing activities Issuance of bonds

Payment of devidends
Purchase of treasury shares
Net cash provided by financing activities
Net increase in cash

[$9,000 - ($20,000 - $8,000)]

An additional proof to arrive at the increase in cash is provided as follows:

Total current assets-end of period

Total current assets-beginning of period
Increase in current assets during the period
Increase in current assets other than cash
Increase in cash during year

B) CHEKOV CORPORATION'S
 Statement of Financial Position
December 31, 2019
Assets
Non-Current Assets
Long-term Investments

Property, Plant, and Equipment

Land
Buildings ($120,000 + $27,000) $ 147.00
Less: Accumulated depreciation ($30,000+$4,000) $ 34.00
Equipment ($90,000-$20,000) $ 70.00
Less: Accumulated depreciation ($11,000-$8,000+$9,000) $ 12.00
Total Property, Plant, and Equipment

Intangible Assets :
Patients ($40,000-$2,500)
Total Non-current Assets
Current Assets
Total Assets

Equity and Liabilities

Equity
Share Capital-ordinary $ 180.00
Retained Earnings ($44,000+$55,000-$25,000) $ 74.00
Less: Treasury shares $ 11.00
Total Shareholders' Equity

Non-current liabilities
Bonds payable ($100,000+$50,000) $ 150.00
Current Liabilities ($150,000+$13,000) $ 163.00
Total liabilities
Total equity and liabilities
RATION'S
h Flows
ember 31, 2019

$ 55.00
vities:

$ 13.00
$ 2.50
$ 3.00
$ 13.00
$ 25.00 $ 6.50
$ 61.50

$ 9.00
$ 27.00
$ 16.00
$ 34.00

$ 50.00
$ 25.00
$ 11.00
$ 14.00
$ 41.50

ows:

$ 301.50 [from part (b)]

$ 235.00
$ 66.50
$ 25.00
$ 41.50

N'S
on

$ 16.00

$ 30.00

$ 113.00

$ 58.00
$ 201.00

$ 37.50
$ 254.50
$ 301.50
$ 556.00

$ 243.00

$ 313.00
$ 556.00