Soc.

XYZ Bilans Comparatifs:

XYZ Bilans Comparatifs
Assets/Actif Year-End Year-End
2008 2009
Cash $ 30,000 $ 40,000
Marketable Sec 10,000 10,000
Accts Rec 170,000 200,000
Inventory 160,000 180,000
Prepaid Exp 30,000 20,000
Investments 20,000 50,000
Plant & Equipment 1,000,000 1,100,000
Less Acc Depreciation 550,000 600,000
Net Plant & Equipment 450,000 500,000
Total Assets 870,000 1,000,000
Liabilities and Owner's Capital/
Passif
Accts Pay 45,000 80,000
ST Bank Loans 100,000 100,000
Accrued Exp 35,000 30,000
LT Bank Loans 40,000 90,000
Owners Capital 650,000 700,000
Total Liabilities and Capital 870,000 1,000,000
 

Soc. XYZ Compte de résultat: 

XYZ Company
Income Statement
For the Year Ending Dec 2009
1.Sales $996,500
2.Cost of Goods Sold $500,000
3.Gross Profit $496,500
4.Selling & Administrative Exp $250,000
5.Depreciation $50,000
6.Operating Profit(EBIT) $196,500
7.Interest $30,000
8.Earnings Before Taxes $166,500
9.Taxes(.40) $56,000
10.Net Income $110,500
• dividendes distribuées : $65,000.
 XYZ Company Statement of Cash Flows
1.Net Income $ 110,500
2.Depreciation 50,000
3.Inc in Accts Rec (30,000)
4.Inc in Inventory (20,000)
5.Dec in Prepaid Exp 10,000
6.Inc in Accts Payable 35,000
7.Dec in Accruals (5,000)
8.Net Cash Flows from operating activities $150,500
9.Inc in Investments (30,000
10.Inc in Plant & Equipment (100,000)
11.Net Cash Flows from investing activities (130,000)
12.Inc in LT Bank Loans 50,000
13.Dividends Paid (65,000)
14.Net Cash Flows from financing activities (10,500)
15.Net increase in cash flows $10,000

FCF

• $150,500 Net Cash Flows From Operations

• -130,000 Investment in Plant and Equipment
• - 65,000 Dividends Paid
+50,000
• =(15,000) Negative Free Cash Flow

XYZ Company, in the example, has a negative free cash flow. They need to analyze their financial
position very carefully and find ways to cut costs, maximize sales revenue, and make other
improvements to their financial health in order for their firm to remain viable.