_C;t.

sh Ftow Handout

Case I
Balance Sheet

Assets:
Current Assets: 20X2 20Xl

Cash 971,337 593,443

Marketable Securities 1,600,000 0
Accounts Receivable 4,999,204 3,281,486
Inventory 8,057,847 9,862,238
Total Current Assets 15,628,388 13,737,167

Land 64,027 64,027

Buildings & Equipment 7,931,865 7,393,685
( Accumulated deQreciation) {4, 111,7482 (3,724,564}
Net fixed Assets 3,884,144 3,733,148

Deferred Income Taxes 89,000 l l 7,000

Pre12aid Ex12enses 597,752 438,710
Total Assets 20,199,284 18,026,025

Liabilities & Net Worth

Current Liabilities

Accounts Payable 2,899,290 1,259,711

Accrued Expenses 939,432 739,170
Income Taxes Payable 589,960 506,262
Sundry Current Liabilities 306,254 261,117
Total Current Liabilities 4,734,936 2,766,260

Long Term Debt 0 950,000

Total Liabilities 4,734,936 3,716,260

Provision for Deffered Income Ta,xes 474,000 507,000

Net Worth
Paid in capital 933,063 919,863
Reserves 302,230 214,960
Retained Earnings 13,755,055 12,667,942
Total Net Worth 14,990,348 13,802,765

Total Liabilities and Net ·worth 20,199,284 18,026,025

c~1sh Flow Handout

Income Statement: 20X2 20Xl

Net Sales 26,998,894 19,918,528

COGS (18,802,051) (I 3,754,382)

Depreciation Expense (604,178) (574,841)

Gross Profit 7,592,665 5,589,305

SG&A (4,033,699) (2,973,201)

NOP 3,558,966 2,616,104

Interest Expense (45,908) (67,066)

I/est Income 59,011 37,329

NPBT 3,572,069 2,568,367

Provision for income taxes (I, 730,000) (1,205,000)

Provision for deffered taxes 5,000 (39,000)

NPAT 1,847,069 1,342,367

Dividends Declared (759,956) (570,315)

Retained Earnings for the Year 1,087,113 772,052

Cash Flow Hanllout
Case 11

Case II
Balance Sheet

Assets:
Current Assets: 20X2 20Xl

Cash 1,317 1,897

Marketable Securities 0 0
Accounts Receivable 20,604 I 8,157
Inventory 20,977 14,002
Total Current Assets 42,898 34,056

Land
Buildings & Equipment
(Accumulated depreciation)
Net fixed Assets 13,233 11,789

Sundry non current asset 556 31 l

Prepaid Expenses 1,212 611
Total Assets 57,899 46,767

Liabilities & Net ·worth

Current Liabilities
Notes Payable 3,500 3,500
CPLTD 61 I 1,069
Accounts Payable 8,979 6,616
Accrued Expenses 2,471 2, 115
Income Taxes Payable 1,500 1,486
Total Current Liabilities 17,061 14,786

Long Term Debt 17,181 10,997

Total Liabilities 34,242 25,783

Provision for Deferred Income Taxes 1,513 l,354

Net Worth
Paid in capital 3,330 3,251
Reserves 5,376 5,265
Retained Earnings 13,438 11,114
Total Net Worth 22,144 19,630

Total Liabilities and Net \Vorth 57,899 46,767

Cash Flow Handout
Case II

Income Statement: 20X2 20Xl

Net Sales 117,796 98,766

COGS (90,625) (75,067)

Depreciation Expense (2,110) (2,004)

Gross Profit 25,061 21,695

SG&A (16,309) (14,695)

R&D expenses (1,939) (2,070)

NOP 6,813 4,930

Interest Expense (2,110) (1,612)

Other Income 636 714

NPBT 5,339 4,032

Provision for income taxes (2,260) (1,299)

Provision for deffered taxes (159) (363)

NPAT 2,921 2,370

Dividends Declared (597) (451)

Retained Earnings for the Year 2,324 1,919

C,sh Flow Hant.lout
Case HI

Case Ill
Balance Sheet
Assets:
Current Assets: 20Xl 20X2

Cash 564 1,484

Marketable Securities 25,853 32,584
Accounts Receivable 14,832 13,779
Inventory 27,199 27,932
Sundrv Current Assets 2,223 2,922
Total Current Assets 70,671 78,701

Land 2,044 2,362

Buildings & Equipment 37,325 42,565
(Accumulated depreciation) (13,697) ( I 5,277)
Construction in progress 947 1390
Net fixed Assets 27, l I 9 31,040

Investments 2,110 1,786

Total Assets 99,900 111,527

Liabilities & Net \Vorth

Current Liabilities
CPLTD 873 833
Accounts Payable 14,562 14,008
Accrued Expenses 3,396 3,515
Income Taxes Payable 833 1,905
Dividends payable 740 890
State & local tax payable 1,971 2,340
Total Current Liabilities 22,375 23,491

Long Term Debt 7,932 7,002

State & local tax payable 257 518
Total Liabilities 30,564 31,0ll

Provision for Deferred Income Ta"'<es 1,705 2,202

Net Worth
Paid in capital 3,698 3,708
Reserves 2,852 3,471
Retained Earni n °s 61,081 71 135
Total Net \Vorth 67,631 78,314

Total Liabilities and Net \Vorth 99,900 111,527

Cash Flow Handout
Case Ill

Income Statement: 20Xl 20X2

Net Sales 200,387 214,934

COGS (137,256) (143,224)

Depreciation Expense (3,225) (3,645)

Gross Profit 59,906 68,065

SG&A (40,321) (43,950)

State and local taxes (1,250) (1,616)

NOP 18,335 22,499

Interest Expense (837) (8 I l)

Interest income 3,148 2,458
Other Income 645 416

NPBT 21,291 24,562

Provision for income taxes (8,276) (10,107)

Provision for deffered taxes (862) (576)

NPAT 12,153 13,879

Dividends Declared (2,640) (3,051)

Retained Earnings for the Year 9,513 10,828

 Cash Flow Format
Case IV

Case IV
Balance Sheet

Assets:
Current Assets: 20Xl 20X2

Cash 2,431.9 2,638.0

Accounts Receivable 28,434.8 30,211.8
Inventory 41,862.4 49,780.7
Total Current Assets 72,729.1 82,630.5

Land 2,051.1 1,655.6

Buildings & Equipment 67,699.2 72,330.1
(Accumulated deEreciation) {29,270.8} {31,059.0)
Net fixed Assets 40,479.5 42,926.7

Investments 4,184.3 6,452.8

Prepaid Expenses 1,231.7 1,614.4
LT receivables 4,811.5 5,697.9
Intanoib!es 327.6 274.5
Total Assets 123,763.7 139,596.8

Liabilities & Net Worth

Current Liabilities
Notes payable 4,650.0 0
CPLTD 2,350.0 1,700.0
Accounts Payable 5,663.1 5,828.1
Accrued Expenses 9,747.8 10,865.2
Income Taxes Payable 1,958.1 696.5
Total Current Liabilities 24,369.0 19,089.8

Long Term Debt 14,400.0 27,950.0

Total Liabilities 38,769.0 47,039.8

Provision for Deffered Income Taxes 3,102.9 3,397.8

Net Worth
Paid in capital 3,871.0 3,872.7
Reserves 16,678.1 16,719.5
Retained Earnings 61,342.7 68,567.0
Total Net Worth 81,891.8 89,159.2

Total Liabilities and Net Worth 123,763.7 139,596.8

Cash Flow Format
Case IV

Income Statement: 20Xl 20X2

Net Sales 172,459.1 193,334.9

COGS (129,216.7) (145,977.6)

Depreciation Expense 0 (4,029.0)

Gross Profit 43,242.4 43,328.3

SG&A (21,554.6) (23,925.1)

R&Dexpense (4,844.1) (4,803.0)
Amortization expense 0 (53.0)

NOP 16,843.7 14,547.2

Interest Expense (910.1) (1,690.1)

Other expenses (349.0) (199.1)
Other Income 908.7 1,076.6

NPBT 16,493.3 13,734.6

Provision for income taxes (7,940.0) (4,440.0)

Provision for deferred taxes (2,340.0)

NPAT 8,553.3 6,954.6

Net gain on sale of plant 0 1230.1

Investment income 1,245.3 2,253.1

NPAUI 9,798.6 10,437.8

Dividends Declared (2,783.1) (3,213.5)

Retained Earnings for the Year 7,015.5 7,224.3

Cash f!ml' Ham.lout
C.c,eV

Case V
Balance Sheet
Assets:
Current Assets: 20Xl 20X2

Cash 2,536 4,365

Accounts Receivable 11,995 14,865
Inventory 22,716 30,945
Sundry current assets 2,237 l I8
Total Current Assets 39,-48-t 50,293

Land
Buildings & Equipment 21,256 23,731
(A.ccumulated dqireciation) (9012) (10,420)
Net fixed Assets 12,244 13,311

Investment 4,068 5,598

Prepaid Expenses 916 1,084
Sundry non current assets 555 735
Total Assets 57,267 71,021

Liabilities & Net \Vorth

Current Liabilities
Notes payable 1,369 l,951
CPLTD 904 841
Accounts Payable 3,602 6,473
Accrued Expenses 3,334 6,924
Income Taxes Payable 410 2,420
Sundry current liability 272 0
Total Current Liabilities 9,891 18,609

Long Term Debt 12,338 11,579

Total Liabilities 22,229 30,188

Provision for Deferred Income Taxes 676 770

:Minority interest 834 1,207

Net \Vorth
Paid in capital 2,157 3,08 l
Reserves 12,613 12,948
Retained Earnings 18,758 22,827
Total Net Worth 33,528 38,S56

Total Liabilities and Net Worth 57,287 71,021

Cash Flow Hantlout
C,tse V

Income Statement: 20Xl 20X2

Net Sales 73,862 91,753

COGS (53,229) (67,172)

Depreciation Expense (1,356) (1,636)

Gross Profit 24,277 22,945

SG&A (12,920) (13,031)

R&D expense (567) (833)

NOP 10,790 9,076

Interest Expense (973) (1,255)

Other expenses ( l,234) (1,882)
Other Income 765 1,098

NPBT 9,348 7,037

Provision for income taxes (3,336) (2,621)

Provision for deffered income taxes (94)

NPAT 6,012 4,322

l\!Iinority interest expense (160) (431)

Equity investment income 791 852

NPAUI 6,643 4,743

Dividends Declared (1,218) (674)

Retained Earnings for the Year 5,425 4,069

 Ca,h Flow Handout
Ca,e VI

Case VI
Balance Sheet
Assets:
Current Assets: 20Xl 20X2

Cash 4,908 8,068

Accounts Receivable 59,917 55,599
Inventory 67,369 50,335
Total Current Assets l32,194 114,002

Land 1,975 1,969

Buildings & Equipment 100,719 101,369
( Accumulated de[>reciation) {48.221) {50,682)
Net fixed Assets 54,473 52,656

Investments 12,931 13,445

Prepaid Expenses 4,976 4.929
Sundry non current assets 2,785 3,998
Other receivables 12,986 7,907
Total Assets 220,345 196,937

Liabilities & Net -worth

Current Liabilities
Notes payable 6,000 3,045
CPLTD 3,364 3,241
Accounts Payable 13,199 9,025
Accrued Expenses 20,247 22,276
Income Taxes Payable 451 2,017
Total Current Liabilities 43,261 39,604

Long Term Debt 61,255 43,716

Total Liabilities 104,516 83,320

Provision for Deferred Income Taxes 5,655 5,342

Net \Vorth
Paid in capital 21,511 20,630
FX translation gain or loss (I ,219) (3,878)
Retained Earnings 99,687 100,332
Treasury stock (9,805) (8,809)
Total Net \Vorth 110,174 108,275

Total Liabilities and Net \Vorth 220,345 108,275

Ctsb Flow Hamlout
Case VI

Income Statement: 20X1 20X2

Net Sales 351,565 331,717

COGS (269,344) (252,874)
Depreciation Expense (7,647) (7,678)

Gross Profit 7-',574 71,165

SG&A (48,152) (48,575)

R&D expense (7,438) (7,678)

:"/OP 13,984 14,912

Interest Expense (9,074) (7,143)

Other Income 2,645 1,775

NPBT 12,555 9,544

Provision for income taxes (5,012) (4,020)

NPAT 7,543 5,524

Equity investment income 358 3

NPAUI 7,901 5,527

Dividends Declared 0 ( 4882)

Retained Earnings for the Year 7,901 645

 Cash Flow Handout

Comment on the cash flow:

Sources Uses

NOPAT 51% Interest expense 20%

Depree. 14% NPE 12%
WI 35% STD 30%
Dividends 38%

Note: WI is a source mainly due to the increase in the A/P due to the
mother company abroad.

Sources Uses

NOPAT 31% WI 45%

Depree. 14% Prepaid 4%
Other income 4% FP 21%
LTD 46% NPE 24%
NW 1% SNCA 2%
Cash 4% Dividends 4%

Note: Only 60% of the increase in the WI represented an increase in the

permanent level of WI.

Sources Uses
NOPAT 31% WI 20%
Depree. 16% Dividends 14%
LTD 17% FP 21%
STD 36% NPE 45%

Note: This company is expanding due to am permanent increase in the

demand on its products.