Income StatementIncome Statement for the Year Ended 12-31-2011Amount in DollarsSales2,000,000.00Cost of Goods Sold1,500,000.00Gross Profit500,000.00Selling and Administrative Expenses270,000.00Depreciation Expense50,000.00Operating Profit (EBIT)180,000.00Interest Expense20,000.00Earnings Before Taxes160,000.00Taxes49,500.00Net Income110,500.00Notes:Dividends Paid to Preferred Stockholders10,500.00Cash Dividend to Common Stockholders50,000.00 Balance SheetComparative Balance Sheet for the Years 2009 and 201012/31/0912/31/10AssetsAmount in DollarsCurrent Assets:Cash30,000.0040,000.00Marketable Securities10,000.0010,000.00Accounts Receivable170,000.00200,000.00Inventory160,000.00180,000.00Prepaid Expenses30,000.0020,000.00400,000.00450,000.00Long Term investments20,000.0050,000.00Plant and Equipment1,000,000.001,100,000.00 Less Accumulated Depreciation550,000.00600,000.00Net Plant and Equipment450,000.00500,000.00Total Assets870,000.001,000,000.00Liabilities and Stockholders' EquityCurrent LiabilitiesAccounts Payable45,000.0080,000.00Notes Payable100,000.00100,000.00Accrued Expenses35,000.0030,000.00180,000.00210,000.00Long Term LiabilitiesBonds Payable, 202040,000.0090,000.00Total Liabilities220,000.00300,000.00Stockholders' EquityPreferred Stock50,000.0050,000.00Common Stock100,000.00100,000.00Capital Paid in Excess of Par250,000.00250,000.00Retained Earnings250,000.00300,000.00Total Stockholders' Equity650,000.00700,000.00Total Liabilities and Stockholders' Equity870,000.001,000,000.00 Income StatementIncome Statement for the year ended 12/31/2011Amount in DollarsSales2,000,000.00Cost of Goods Sold1,500,000.00Gross Profit500,000.00Selling and Administrative Expenses270,000.00Depreciation Expense50,000.00Operating Profit (EBIT)180,000.00Interest Expense20,000.00Earnings Before Taxes160,000.00Taxes49,500.00Net Income110,500.00Notes:Dividends Paid to Preferred Stockholders10,500.00Cash Dividend to Common Stockholders50,000.00 Balance SheetComparative Balance Sheet for the Years 2009 and 201012/31/0912/31/10AssetsAmount in DollarsCurrent Assets:Cash30,000.0040,000.00Marketable Securities10,000.0010,000.00Accounts Receivable170,000.00200,000.00Inventory160,000.00180,000.00Prepaid Expenses30,000.0020,000.00400,000.00450,000.00Long Term Investments20,000.0050,000.00Plant and Equipment1,000,000.001,100,000.00 Less Accumulated Depreciation550,000.00600,000.00Net Plant and Equipment450,000.00500,000.00Total Assets870,000.001,000,000.00Liabilities and Stockholders' EquityCurrent LiabilitiesAccounts Payable45,000.0080,000.00Notes Payable100,000.00100,000.00Accrued Expenses35,000.0030,000.00180,000.00210,000.00Long Term LiabilitiesBonds Payable, 202040,000.0090,000.00Total Liabilities220,000.00300,000.00Stockholders' EquityPreferred Stock50,000.0050,000.00Common Stock100,000.00100,000.00Capital Paid in Excess of Par250,000.00250,000.00Retained Earnings250,000.00300,000.00Total Stockholders' Equity650,000.00700,000.00Total Liabilities an.

1. Income StatementIncome Statement for the Year Ended 12-31-
2011Amount in DollarsSales2,000,000.00Cost of Goods
Sold1,500,000.00Gross Profit500,000.00Selling and
Administrative Expenses270,000.00Depreciation
Expense50,000.00Operating Profit (EBIT)180,000.00Interest
Expense20,000.00Earnings Before
Taxes160,000.00Taxes49,500.00Net
Income110,500.00Notes:Dividends Paid to Preferred
Stockholders10,500.00Cash Dividend to Common
Stockholders50,000.00
Balance SheetComparative Balance Sheet for the Years 2009
and 201012/31/0912/31/10AssetsAmount in DollarsCurrent
Assets:Cash30,000.0040,000.00Marketable
Securities10,000.0010,000.00Accounts
Receivable170,000.00200,000.00Inventory160,000.00180,000.0
0Prepaid
Expenses30,000.0020,000.00400,000.00450,000.00Long Term
investments20,000.0050,000.00Plant and
Equipment1,000,000.001,100,000.00 Less Accumulated
Depreciation550,000.00600,000.00Net Plant and
Equipment450,000.00500,000.00Total
Assets870,000.001,000,000.00Liabilities and Stockholders'
EquityCurrent LiabilitiesAccounts
Payable45,000.0080,000.00Notes
Payable100,000.00100,000.00Accrued
Expenses35,000.0030,000.00180,000.00210,000.00Long Term
LiabilitiesBonds Payable, 202040,000.0090,000.00Total
Liabilities220,000.00300,000.00Stockholders' EquityPreferred
Stock50,000.0050,000.00Common
Stock100,000.00100,000.00Capital Paid in Excess of
Par250,000.00250,000.00Retained
Earnings250,000.00300,000.00Total Stockholders'
Equity650,000.00700,000.00Total Liabilities and Stockholders'
Equity870,000.001,000,000.00

2. Income StatementIncome Statement for the year ended
12/31/2011Amount in DollarsSales2,000,000.00Cost of Goods
Sold1,500,000.00Gross Profit500,000.00Selling and
Administrative Expenses270,000.00Depreciation
Expense50,000.00Operating Profit (EBIT)180,000.00Interest
Expense20,000.00Earnings Before
Taxes160,000.00Taxes49,500.00Net
Income110,500.00Notes:Dividends Paid to Preferred
Stockholders10,500.00Cash Dividend to Common
Stockholders50,000.00
Balance SheetComparative Balance Sheet for the Years 2009
and 201012/31/0912/31/10AssetsAmount in DollarsCurrent
Assets:Cash30,000.0040,000.00Marketable
Securities10,000.0010,000.00Accounts
Receivable170,000.00200,000.00Inventory160,000.00180,000.0
0Prepaid
Expenses30,000.0020,000.00400,000.00450,000.00Long Term
Investments20,000.0050,000.00Plant and
Equipment1,000,000.001,100,000.00 Less Accumulated
Depreciation550,000.00600,000.00Net Plant and
Equipment450,000.00500,000.00Total
Assets870,000.001,000,000.00Liabilities and Stockholders'
EquityCurrent LiabilitiesAccounts
Payable45,000.0080,000.00Notes
Payable100,000.00100,000.00Accrued
Expenses35,000.0030,000.00180,000.00210,000.00Long Term
LiabilitiesBonds Payable, 202040,000.0090,000.00Total
Liabilities220,000.00300,000.00Stockholders' EquityPreferred
Stock50,000.0050,000.00Common
Stock100,000.00100,000.00Capital Paid in Excess of
Par250,000.00250,000.00Retained
Earnings250,000.00300,000.00Total Stockholders'
Equity650,000.00700,000.00Total Liabilities and Stockholders'
Equity870,000.001,000,000.00
Cash Flow from operating ACTCash Flow from Operating

3. Activities
as of 12/31/2009Entry NameAmount Net Cash Flow from
Operating Activities- 0
Cash Flow from investing ACTCash Flow from Investing
Activities
as of 12/31/2010Entry NameAmount Net Cash Flow from
Investing Activities- 0
Cash Flow from financingCash Flow from Financing Activities
as of 12/31/2010Entry NameAmount Net Cash Flow from
Financing Activities- 0
Sheet6
AC1420: Week 4 Developing a Cash Flow Statement
Page 1
Calculate: The following calculations will be based on the
income statement and the
balance sheet provided:
The net cash flow from operating activities
The net cash flow from investing activities
The net cash flow from financing activities
Click here to download the Income Statement and Balance
Sheet.
Submission Requirements:
Click here to download the template for calculation.

4. Evaluation Criteria:
Criteria Points Assigned Points Earned
Did you calculate cash flow from
operating activities?
40%
Did you calculate cash flow from
investing activities?
30%
Did you calculate cash flow from
financing activities?
30%
http://www.content.distance-education.itt-
tech.edu/cliksdmrroot/content_directory/mount1/507393/AC142
0/Exercise_4.2_Income_Statement_and_Balance_Sheet.xlsx
http://www.content.distance-education.itt-
tech.edu/cliksdmrroot/content_directory/mount1/507393/AC142
0/Exercise_4.2_Cash_Flows_Template.xlsx