Create a cash flow statement for global corporation

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Reference no: EM131398888

Cash Flow Statement

Create a Cash Flow Statement for Global Corporation for 2007. The Balance Sheet and Income Statements are provided below. Supplemental information:

• Additions to PP&E for 2007 is $33.4 million
• Dividends for 2007 were $1 million
• Ignore Retained Earnings Calculation: Net Income and Dividends are provided.

o No change in common stock
o S/E increased $1 million = ΔR/E (NI-Div)

Table: Global Corporation Balance Sheet for 2007 and 2006

GLOBAL CORPORATION
Balance Sheet
Year ended December 31 (in $ millions)

Assets

2007

2006

Liabilities and Stockholders' Equity

2007

2006

Current Assets



Current Liabilities



Cash

23.2

20.5

Accounts payable

29.2

26.5

Accounts receivable

18.5

13.2

Notes payable/short-term debt

5.5

3.2

Inventories

15.3

14.3




Total current assets

57.0

48.0

Total current liabilities

34.7

29.7

Long-Term Assets



Long-Term Liabilities



Net property, plant,
and equipment

113.1

80.9

Long-term debt

113.2

78.0

Total long-term assets

113.1

80.9

Total long-term liabilities

113.2

78.0




Total Liabilities

147.9

107.7




Stockholders' Equity

22.2

21.2

Total Assets

170.1

128.9

Total Liabilities and Stockholders' Equity

170.1

128.9

Table: Global Corporation Income Statement Sheet for 2007 and 2006

GLOBAL CORPORATION
Income Statement
Year ended December 31 (in $ millions)


2007

2006

Total sales

186.7

176.1

Cost of sales

-153.4

-147.3

Gross Profit

33.3

28.8

Selling, general, and administrative expenses

-13.5

-13

Research and development

-8.2

-7.6

Depreciation and amortization

-1.2

-1.1

Operating Income

10.4

7.1

Other income

-

-

Earnings Before Interest and Taxes (EBIT)

10.4

7.1

Interest income (expense)

-7.7

-4.6

Pretax Income

2.7

2.5

Taxes

-0.7

-0.6

Net Income

2.0

1.9

Earnings per share:

$0.56

$0.53

Diluted earnings per share:

$0.53

$0.50

Reference no: EM131398888

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