Prepare statement of cash flows for the year ended september

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Reference no: EM131816587

Question - Below is the income statement and balance sheet of Closely Held Corporation. From this information prepare a statement of cash flows for the year ended September 30, 2005.

Income Statement for year ended September 30, (in thousands)


2004

2005

Revenues

$500,000

$512,000

Cost of Sales

(395,000)

(404,480)

Gross Margin

105,000

107,520

Selling and Administrative

(60,000)

(61,440)

Income before interest and taxes

45,000

46,080

Interest expense

(9,900)

(12,320)

Income before income taxes

35,100

33,760

Income tax

(12,812)

(12,322)

Net income

$ 22,289

$ 21,438

 

Balance Sheet as of September 30, (in thousands)


2004

2005

Change

Assets




Current Assets




Cash and equivalents

$ 10,000

$ 10,240

$ 240

Accounts receivable

40,000

48,640

8,640

Inventories

39,500

56,627

17,127

Prepaid expenses

10,000

11,000

1,000

Total Current Assets

99,500

126,507

27,007

Property, plant, and equipment

390,000

411,000

21,000

Accumulated depreciation

(233,000)

(250,000)

(17,000)

P, P & E net

157,000

161,000

4,000

Other Assets, net amortization

27,000

26,000

(1,000)

Total Assets

$283,500

$313,507

$ 30,007

Liabilities and Shareholders' Equity




Current Liabilities




Current portion of long-term debt

$ 12,000

$ 13,000

$ 1,000

Notes payable

30,000

31,000

1,000

Accounts payable

39,500

42,450

2,950

Accrued liabilities

21,569

18,000

(3,569)

Income taxes payable

8,900

9,500

600

Total Current Liabilities

111,969

113,950

1,981

Long-term debt

87,000

99,000

12,000

Non-current deferred income tax

10,000

9,070

(30)

Other non-current liabilities

4,340

5,000

660

Shareholders' Equity




Common stock - Class A

3,000

3,500

500

Capital in excess of par

21,000

26,000

5,000

Retained earnings

46,191

56,087

9,896

Total Shareholders' Equity

70,191

85,587

15,396

Total Liabilities and Equity

$283,500

$313,507

$ 30,007

Reference no: EM131816587

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