Bavarian Sausage, Inc. posted the following balance sheet and income statement acoounts.

Cash 50,000
Accounts Receivable 125,000
Inventories 225,000
Plant & Equipment(Net) 525,000
Accounts Payable 185,000
Notes Payable 125,000
Long-term Debt 115,000
Common Stock 350,000
Retained Earnings 150,000
Sales 525,000
Cost of Goods Sold 215,000
Depreciation 65,000
Interest Expense 35,000

Bavarian Sausage, Inc. has 100,000 shares of common stock outstanding, but no preferred stock. The current price
of Bavarian's common stock is P15. Corporate Tax is at 40%.
100,000 shares x P15 1,500,000
What is Bavarian Sausage, Inc.'s operating cash flows? (SHOW YOUR SOLUTION)

Sales
COGS
 ANSWER:

Earning Before Interest & Taxes 245,000

Depreciation 65,000
Less:
Corporate Tax (40%) 84,000
Operating Cash Flow 226,000

. The current price

 Bavarian Sausage, Inc.
Statement of Financial Position
December 31, XXXX

ASSETS

Current Assets:

Cash 50,000
Accounts Receivable 125,000
Inventories 225,000
Total Current Assets 400,000

Noncurrent Assets:
Plant and Equipment (Net) 525,000
Total Noncurrent Assets 525,000

Total Assets 925,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Accounts Payable 185,000
Notes Payable 125,000
Total Current Liabilities 310,000

Noncurrent Liabilities
Long-term Debt 115,000
Total Noncurrent Liabilities 115,000

Equity
Common Stock 350,000
Retained Earnings 150,000
500,000

Total Liabilities and Shareholders' Equity 925,000

 Bavarian Sausage, Inc.
Statement of Comprehensive Income
Year Ended December 31, XXXX

Net Sales 525,000

Less: Cost of Goods Sold 215,000
Less: Depreciation 65,000
Earning Before Interest and Taxes 245,000

Expenses:
Interest Expense 35,000 35,000
Net Profit Before Taxes 210,000
Less: Corporate Tax (40%) 84,000
Net Income 126,000