Solution-Using balance sheets compute working capital

Using balance sheets compute working capital

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Reference no: EM13836122

Question: Using these balance sheets, compute working capital. Provide your analysis regarding working capital.

Apex Printing Balance Sheets As of December 31, 2013 and 2012


		000$	000$
	Assets	2013	2012
Cash		6,000	5,700
Accounts Receivable		2,350	2,300
Inventory		12,100	6,500
Total Current Assets		20,450	14,500
Land		25,000	20,000
Building & Equipment		300,000	300,000
Less: Accumulated Depreciation - Building & Equipment		187,850	160,000
Total Long Term Assets		137,150	160,000
Total Assets		157,600	174,500

Liabilities and Stockholders' Equity

Accounts Payable	4,600	3,500
Salaries Payable	0	2,100
Interest Payable	1,500	0
Short Term Notes Payable	12,000	0
Taxes Payable	0	5,600
Total Current Liabilities	18,100	11,200
Mortgate Payable	54,950	100,000
Total Long Term Liabilities	54,950	100,000

Common Stock	60,000	60,000
Retained Earnings	24,550	3,300
Total Stockholders' Equity	84,550	63,300
Total Liabilities and Stockholders' Equity	157,600	174,500

	Apex Printing
	Income Statements
	For the Periods Ended December 31, 2013 and 2012
		000$	000$
		2013	2012
Revenue:		450,000	475,000
Less: Cost of Goods Sold		324,300	374,500
Less: Depreciation Expense		27,850	26,000
Gross Margin		97,850	74,500
Selling, General & Administrative Expenses		29,100	32,000
Income Before Interest & Taxes		68,750	42,500
Interest Expense		7,500	6,000
Income Before Taxes		61,250	36,500
Income Taxes		35,000	30,000
Net Income		26,250	6,500

	Apex Printing
	Statement of Cash Flows
	For the Period Ended December 31, 2013
		000$
Cash Flows from Operating Activities:
Net Income		26,250
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation Expense		27,850
Increase in accounts receivable		50
Increase in inventory		5,600
Decrease in salaries payable		2,100
Increase in interest payable		1,500
Decrease in taxes payable		5,600
Increase in Short Term notes Payable		12,000
Increase in accounts payable		1,100
Net Cash Flow from Operating Activities			55,350

Cash Flows from Investing Activities:
Cash paid to purchase land	5,000
Net Cash Flow from Investing Activities		5,000

Cash Flows From Financing Activities:
Cash paid for mortgage	45,050
Cash paid for dividends	5,000	50,050

Net Increase in Cash		300
Plus: Cash Balance at December 31, 2012		5,700
Cash Balance at December 31, 2013		6,000

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Using balance sheets compute working capital

Reference no: EM13836122

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