Goliath Inc. Income Statement Sales COGS except excluding depr. and amort. Depreciation and Amortization Other operating expenses 2014 $2,940,000 $2,100,000 $137,620 2013 $2,800,000 $2,086,000 $126,000 6 7 8 9 10 EBIT EBT Net Income $434,000 $402,780 $281400241668 $509,180 40.180 $469,000 Interest Expense Taxes (40%) 161,112 12 13 14 15 16 17 18 19 20 21 Common dividends Addition to retained earnings $126,875 $154,525 $120,834 120,834 Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of Dollars) 2014 63 390 28,364 $140,000 $35,000 2013 $67.20 28,000 $140,000 $35,000 Solution Cash Flows Statement For the year ended Dec. 31, 2014 Cash Flows from operating activities: Net Income $        281,400 Add: Depreciation and amortization $        137,620 Less: Increase in accounts receivables (367500-336000) $        (31,500) Less: Increase in inventories (588000-392000) $     (196,000) Add: Increase in accounts payable (235200-224000) $          11,200 Add: Increase in accruals (88200-84000) $            4,200 Add: Increase in notes payable (139503-45360) $          94,143 $                                     301,063 Cash Flows from Investing activities: Purchase of Short term investments (26313-22680) $          (3,633) Purchase of fixed assets = (1528800-1400000)+137620 $     (266,420) $                                  (270,053) Cash Flows from Financing activities: Common Dividends paid $     (126,875) Long term debt rasied (473634-408240) $          65,394 Common Stock Issued (1286551-1249080) $          37,471 $                                     (24,010) Net Cash Flows $                                         7,000 Beginning Cash balance $                                     140,000 Ending cash balance $                                     147,000 .

1. Goliath Inc. Income Statement Sales COGS except excluding depr. and amort. Depreciation and
Amortization Other operating expenses 2014 $2,940,000 $2,100,000 $137,620 2013 $2,800,000
$2,086,000 $126,000 6 7 8 9 10 EBIT EBT Net Income $434,000 $402,780 $281400241668
$509,180 40.180 $469,000 Interest Expense Taxes (40%) 161,112 12 13 14 15 16 17 18 19 20
21 Common dividends Addition to retained earnings $126,875 $154,525 $120,834 120,834
Other Data Year-end Stock Price # of shares (Thousands) Lease payment (Thousands of Dollars)
Sinking fund payment (Thousands of Dollars) 2014 63 390 28,364 $140,000 $35,000 2013
$67.20 28,000 $140,000 $35,000
Solution
Cash Flows Statement For the year ended Dec. 31, 2014 Cash Flows from operating activities:
Net Income $ 281,400 Add: Depreciation and amortization $ 137,620 Less: Increase in
accounts receivables (367500-336000) $ (31,500) Less: Increase in inventories (588000-
392000) $ (196,000) Add: Increase in accounts payable (235200-224000) $ 11,200 Add:
Increase in accruals (88200-84000) $ 4,200 Add: Increase in notes payable (139503-
45360) $ 94,143 $ 301,063 Cash Flows from Investing activities:
Purchase of Short term investments (26313-22680) $ (3,633) Purchase of fixed assets =
(1528800-1400000)+137620 $ (266,420) $ (270,053) Cash Flows from
Financing activities: Common Dividends paid $ (126,875) Long term debt rasied (473634-
408240) $ 65,394 Common Stock Issued (1286551-1249080) $ 37,471
$ (24,010) Net Cash Flows $ 7,000 Beginning
Cash balance $ 140,000 Ending cash balance $
147,000