Reference no: EM131808435

Assignment

Given the following statements, prepare a cash flow statement & complete the Balance Sheet as of 12/31/98.

• Income after tax for the year ended 12/31/99 was $100M; although the company elected to retain only $70M of this amount
• Company purchased $250M in depreciable assets during the '99 year

The accumulated depreciation amount will change by $75M ('99 vs. '98)

• Company issued $150M in bonds during the '99 year
• Company issued $130M in Common stock during the '99 year
• Company paid down $50M on Notes Payable during the '99 year
• Company owes $125M more to their vendors in '99 than in '98
• The Company has $250M more money owed to them in'99 than in '98
• The Company has a $150M less in inventory in '99 than in '98
• The Company elected to prepay an additional $50M in rent (‘99 vs. '98)

Balance Sheet
12/31/98	12/31/99
Current Assets:
Cash	285,000
Marketable Securities	35,000
A/R	475,000
Inventory	150,000
Prepaid Expenses	75,000
Total Current Assets	1,020,000
Investments	175,000
Plant & Equipment	945,000
less Accumulated Depreciation	325,000
Net Plant & Equipment	620,000
Total Assets	1,815,000
Current Liabilities
A/P	325,000
Notes Payable	325,000
Accrued Expenses	50,000
Total Current Liabilities	700,000
Bonds Payable	475,000
Total Liabilities	1,175,000
Stockholders Equity
Preferred Stock	100,000
Common Stock	140,000
Capital in excess of Par	150,000
Retained Earnings	250,000
Total Stockholders Equity	640,000
Total Liabilties & Stockholders Equity	1,815,000