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    01 - Exercises Session 1 - Empty

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    Agustín Rosales
    Lavalle Corp saw a decrease in revenues from $15,487,000 to $13,176,000 from 20X8 to 20X9, but still had net earnings of $598,000 in 20X9. Retained earnings increased from $4,043,000 to $4,576,000 over this period. Total assets decreased slightly from $13,026,000 to $13,216,000 driven mostly by decreases in property, plant and equipment and increases in cash.

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    01 - Exercises Session 1 - Empty

    Uploaded by

    Agustín Rosales
    49 views4 pages
    Lavalle Corp saw a decrease in revenues from $15,487,000 to $13,176,000 from 20X8 to 20X9, but still had net earnings of $598,000 in 20X9. Retained earnings increased from $4,043,000 to $4,576,000 over this period. Total assets decreased slightly from $13,026,000 to $13,216,000 driven mostly by decreases in property, plant and equipment and increases in cash.

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    01_Exercises Session 1_empty (1)

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    Lavalle Corp saw a decrease in revenues from $15,487,000 to $13,176,000 from 20X8 to 20X9, but still had net earnings of $598,000 in 20X9. Retained earnings increased from $4,043,000 to $4,576,000 over this period. Total assets decreased slightly from $13,026,000 to $13,216,000 driven mostly by decreases in property, plant and equipment and increases in cash.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    49 views4 pages

    01 - Exercises Session 1 - Empty

    Uploaded by

    Agustín Rosales
    Lavalle Corp saw a decrease in revenues from $15,487,000 to $13,176,000 from 20X8 to 20X9, but still had net earnings of $598,000 in 20X9. Retained earnings increased from $4,043,000 to $4,576,000 over this period. Total assets decreased slightly from $13,026,000 to $13,216,000 driven mostly by decreases in property, plant and equipment and increases in cash.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 4

    Problem 1 20X9 20X8

    (Thousands)
    STATEMENT OF OPERATIONS
    Revenues k 13,176 15,487
    Cost of Goods Sold 11,026 12,822
    Other Expenses 1,230 1,169
    Earnings before income taxes 920 1,496
    Income taxes (35% in 20X5) l 322 100
    Net Earnings m 598 1,396

    STATEMENT OF RETAINED EARNINGS

    Beginning Balance n 4,043 2,702


    Net earnings o 598 1,396
    Dividends (65) (55)
    Ending balance p 4,576 4,043

    BALANCE SHEET

    Assets:
    Cash q 1,421 1,086
    PPE 1,597 1,750
    Other assets r 10,198 10,190
    Total Assets s 13,216 13,026

    Liabilities:
    Current liabilities t 5,706 5,403
    Notes payable and LT debt 2,569 3,138
    Other liabilities 69 72
    Total liabilities 8,344 8,613

    Shareholders' equity
    Common Stock 117 118
    Retained earnings u 4,576 4,043
    Other shareholders' equity 179 252
    Total Shareholders' equity v 4,872 4,413

    Total Liabilities and Shareholders' equity w 13,216 13,026

    STATEMENT OF CASH FLOWS

    Net cash from operating activities x 986 475


    Net cash from investing activities 58 574
    Net cash used for financing activities (709) (1,045)
    Increase (decrease) in cash 335 4
    Cash at beginning of year y 1,086 1,082
    Cash at end of year z 1,421 1,086
    920
    a

    1,496
    523.6
    b

    4,576
    c

    13,026

    335

    j
    Problem 10
    Problem 2

    Req. 1

    Lavalle Corp.
    Income Statement ($)
    For the Year Ended December 31, 2019

    Net Sales $ 5,000,000


    Cost of Sales 2,000,000
    Gross Profit 3,000,000
    Operating expenses 2,100,000
    Operating income 900,000
    Other revenues (expenses):
    Interest revenue 10,000
    Interest expense (20,000)
    Income before tax 890,000
    Income tax expense 340,000
    Net income $ 550,000

    Lavalle Corp.
    Balance Sheet ($)
    December 31st, 2019 and 2018

    ASSETS 2019 2018

    Cash and cash equivalents $ 30,000 $ 80,000


    Accounts receivables, net 230,000 120,000
    Inventories 310,000 300,000
    Prepaid expenses 80,000 50,000
    Plant assets, net 1,000,000 900,000
    Other long-term assets, net 110,000 80,000
    Total Assets $ 1,760,000 $ 1,530,000

    LIABILITIES AND SHE 2019 2018

    Accounts and notes payable $ 170,000 $ 250,000


    Accrued expenses 110,000 60,000
    Income taxes payable 160,000 120,000
    Long-term liabilities 300,000 400,000
    Contributed capital 750,000 500,000
    Retained earnings 270,000 200,000
    Total liabilities and SHE $ 1,760,000 $ 1,530,000

    Lavalle Corp.
    Statement of Cash Flows
    For the Year Ended December 31, 2019

    Cash flows from operating activities:


    Cash Collected from customers $ 4,900,000
    Cash paid to suppliers and employees (4,130,000)
    Cash paid for taxes (300,000)
    Net cash provided by operating activities: $ 470,000

    Cash flows from Investing Activities


    Cash paid to purchase plant assets $ (150,000)
    Cash paid to purchase other long-term assets (40,000)
    Net cash used for investing activities $ (190,000)
    Problem 10

    Cash flows from financing activities


    Cash received from issuance of stock $ 250,000
    Cash paid for dividends (480,000)
    Cash paid as repayment of long-term debt (100,000)
    Net cash provided/(used) for financing activities (330,000)

    Net change in cash (50,000)


    Cash and cash equivalents at January 1 80,000
    Cash and cash equivalents at December 31 $ 30,000

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