Integrated Financial Statement Exercise

Balance Sheet Income Statement 1/1/13-12/31/13 Cash Flow Statement 1/1/13-12/31/13

12/31/12 12/31/13
ASSETS Net Revenues 1,340.30 Net Income 422.70
Cash and equivalents 34.60 364.30 Cost of Goods Sold (COGS) 432.40 Depreciation and amortization 20.00
Accounts Receivable 74.80 82.40 Gross income 907.90 Changes in working capital
Inventories 132.60 145.70 Selling, general, & Administrative 123.40 Accounts Receivable (7.60) cash not yet recieved so substract from cashflow
Total Current Assets 242.00 592.40 Research and development 56.30 Inventories (13.10) cash not yet recieved so substract from cashflow
Depreciation & Amortization1 20.00 Accounts payable 10.00 Cash not paid yet so its still in our pockets
PP&E 212.70 259.30 Other operating expenses 12.30 Deferred taxes (13.20)
Goodwill & Intangibles 34.20 42.50 Operating Income 695.90 Cash from operations 418.80
Deferred Taxes 12.60 34.60 Net Interest expense 45.60
Other Long Term Assets 123.90 145.30 Earnings before tax 650.30 Capital expenditures (61.60)
Total Assets 625.40 1,074.10 Pretax income 650.30 Increases in all other long-term assets (34.70)
Income tax expense (35%) 227.61 Cash from investing (96.30)
LIABILITIES Net income 422.70
Accounts payable 120.50 130.50 Dividends2 31.40 Increase in bank loan 10.70
Notes payable 23.50 34.20 1
Amortization expense equals $5m Increase in long term debt 18.80
2
Current portion of LTD 49.60 68.40 Assume all dividends were cash dividends Increase in preferred stock 1.10
Current Liabilities 193.60 233.10 Increase in common stock 1.80
Increase in APIC 17.10
Long-term debt 214.00 214.00 Increase in Treasury stock (10.90)
Deferred taxes 43.50 52.30 Dividends (31.40)
Total Liabilities 451.10 499.40 Cash from financing 7.20

Shareholder's equity Beginning cash balance (12/2012) 34.60

Preferred Stock 12.40 13.50 Total change in cash 329.70
Common Stock par value 5.60 7.40 Ending cash balance (12/2013) 364.30
Additional paid-in-capital 146.40 163.50
Treasury Stock (112.30) (123.20)
Retained Earnings 122.20 513.50
Total liabilities and SE 625.40 1,074.10

PP&E (BOP) 212.70

Less: Depreciation (15.00)
Plus: Capx 61.60
PPE (EOP) 259.30

Intangibles and GW (BOP) 34.20

Amortization (5.00)
New purchases 13.30
Intangibles and GW (EOP) 42.50