The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 22 Bank loans $ 22 Marketable securities 11 Accounts payable 80 Accounts receivable 111 Inventory 155 Total current assets $ 299 Total current liabilities $ 102 Fixed assets: Gross investment $ 251 Long-term debt 26 Less depreciation 71 Net worth (equity and retained earnings) 351 Net fixed assets $ 180 Total assets $ 479 Total liabilities and net worth $ 479 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 32.0 Debt due within a year (bank loans) $ 28.0 Marketable securities 0.0 Accounts payable 116.0 Accounts receivable 126.0 Inventory 189.0 Total current assets $ 347.0 Total current liabilities $ 144.0 Fixed assets: Gross investment $ 347.0 Long-term debt 62.0 Less depreciation 77.5 Net worth (equity and retained earnings) 410.5 Net fixed assets $ 269.5 Total assets $ 616.5 Total liabilities and owners’ equity $ 616.5 Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $ 1,501.0 Operating costs 1,409.5 $ 91.5 Depreciation 7.5 EBIT $ 84.0 Interest 6.0 Pretax income $ 78.0 Tax at 50% 39.0 Net income $ 39.0 Notes: Dividend = $35 million and reinvested earnings = $15 million. Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.)
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 22 Bank loans $ 22 Marketable securities 11 Accounts payable 80 Accounts receivable 111 Inventory 155 Total current assets $ 299 Total current liabilities $ 102 Fixed assets: Gross investment $ 251 Long-term debt 26 Less depreciation 71 Net worth (equity and retained earnings) 351 Net fixed assets $ 180 Total assets $ 479 Total liabilities and net worth $ 479 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 32.0 Debt due within a year (bank loans) $ 28.0 Marketable securities 0.0 Accounts payable 116.0 Accounts receivable 126.0 Inventory 189.0 Total current assets $ 347.0 Total current liabilities $ 144.0 Fixed assets: Gross investment $ 347.0 Long-term debt 62.0 Less depreciation 77.5 Net worth (equity and retained earnings) 410.5 Net fixed assets $ 269.5 Total assets $ 616.5 Total liabilities and owners’ equity $ 616.5 Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $ 1,501.0 Operating costs 1,409.5 $ 91.5 Depreciation 7.5 EBIT $ 84.0 Interest 6.0 Pretax income $ 78.0 Tax at 50% 39.0 Net income $ 39.0 Notes: Dividend = $35 million and reinvested earnings = $15 million. Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
Related questions
Question
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic Mattress Year-End (figures in $ millions) |
||||||
Assets | Liabilities and Shareholders’ Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | $ | 22 | Bank loans | $ | 22 | |
Marketable securities | 11 | Accounts payable | 80 | |||
Accounts receivable | 111 | |||||
Inventory | 155 | |||||
Total current assets | $ | 299 | Total current liabilities | $ | 102 | |
Fixed assets: | ||||||
Gross investment | $ | 251 | Long-term debt | 26 | ||
Less depreciation | 71 | Net worth (equity and retained earnings) | 351 | |||
Net fixed assets | $ | 180 | ||||
Total assets | $ | 479 | Total liabilities and net worth | $ | 479 | |
Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) |
||||||
Assets | Liabilities and Shareholders’ Equity | |||||
Current Assets: | Current Liabilities: | |||||
Cash | $ | 32.0 | Debt due within a year (bank loans) | $ | 28.0 | |
Marketable securities | 0.0 | Accounts payable | 116.0 | |||
Accounts receivable | 126.0 | |||||
Inventory | 189.0 | |||||
Total current assets | $ | 347.0 | Total current liabilities | $ | 144.0 | |
Fixed assets: | ||||||
Gross investment | $ | 347.0 | Long-term debt | 62.0 | ||
Less depreciation | 77.5 | Net worth (equity and retained earnings) | 410.5 | |||
Net fixed assets | $ | 269.5 | ||||
Total assets | $ | 616.5 | Total liabilities and owners’ equity | $ | 616.5 | |
Dynamic Mattress Income Statement for 2017 (figures in $ millions) |
||
Sales | $ | 1,501.0 |
Operating costs | 1,409.5 | |
$ | 91.5 | |
Depreciation | 7.5 | |
EBIT | $ | 84.0 |
Interest | 6.0 | |
Pretax income | $ | 78.0 |
Tax at 50% | 39.0 | |
Net income | $ | 39.0 |
Notes: Dividend = $35 million and reinvested earnings = $15 million.
Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning