Balance Sheet Items Cash Accounts Receivable Inventory Gross P&E Net P&E Total Assets Accounts Payable Operating Cash Flow Net Capital Spending Change in Net Working Capital Total Cash Flow from Assets 2,000 0 8,000 32,000 32,000 42,000 0 3,000 2,000 9,000 40,000 32,000 46,000 3,000 4,000 3,000 10,000 48,000 32,000 49,000 4,000 6,000 4,000 12,000 56,000 32,000 54,000 4,000 6,000 0 12,000 64,000 32,000 50,000 0
Balance Sheet Items Cash Accounts Receivable Inventory Gross P&E Net P&E Total Assets Accounts Payable Operating Cash Flow Net Capital Spending Change in Net Working Capital Total Cash Flow from Assets 2,000 0 8,000 32,000 32,000 42,000 0 3,000 2,000 9,000 40,000 32,000 46,000 3,000 4,000 3,000 10,000 48,000 32,000 49,000 4,000 6,000 4,000 12,000 56,000 32,000 54,000 4,000 6,000 0 12,000 64,000 32,000 50,000 0
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 16MCQ
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Topic Video
Question
Your friend James comes to you with his plan to start an Indiana-based daycare company
Hoosier DaDa inc. He brings you the pro forma financial statements below that reflect his
projections for the company’s first four years in business. Unfortunately, James has never taken a
finance class, so he asks you to complete the following financial analysis.
Transcribed Image Text:Year
Income Statement Items
Revenue
Cost of Goods Sold
SG&A Expenses
Depreciation
EBIT
Taxes
Net Income
Balance Sheet Items
Cash
Accounts Receivable
Inventory
Gross P&E
Net P&E
Total Assets
Accounts Payable
Operating Cash Flow
Net Capital Spending
Change in Net Working Capital
Total Cash Flow from Assets
O
2,000
0
8,000
32,000
32,000
42,000
0
1
60,000
36,000
12,000
8,000
4,000
1,400
2,600
3,000
2,000
9,000
40,000
32,000
46,000
3,000
2
110,000
66,000
22,000
8,000
14,000
4,900
9,100
4,000
3,000
10,000
48,000
32,000
49,000
4,000
3
165,000
99,000
33,000
8,000
25,000
8,750
16,250
6,000
4,000
12,000
56,000
32,000
54,000
4,000
240,000
144,000
48,000
8,000
40,000
14,000
26,000
6,000
0
12,000
64,000
32,000
50,000
0
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