Ron & LeviAc€?cs
Income Statement
For the Year Ending 12/31/2014
Sales Revenue
100,000
Less Cost of Goods Sold
-60,000
Equals Gross Margin
40,000
Operating Expenses
Selling and Administration
15,000
Depreciation
7,000
Total Operating Expense
-22,000
Operating Income
18,000
Tax
-7,200
Net Income
10,800
Ron & LeviAc€?cs
Statement of Retained Earnings
For the Year Ending 12/31/2014
Beginning Balance
10,000
Net Income
10,800
Less Dividends
-3,400
Ending Balance
17,400
Ron & LeviAc€?cs
Balance Sheet
12/31/2013 & 12/31/2014
Category
2013
2014
Cash
20,000
25,000
Accounts Receivable
15,000
12,000
Inventory
30,000
52,000
Total Current Assets
65,000
89,000
Equipment
70,000
65,000
Less Accumulated Depreciation
-15,000
-19,000
Equipment (Net)
55,000
46,000
Total Assets
120,000
135,000
Accounts Payable
15,000
29,000
Long-term Liabilities
25,000
18,600
Total Liabilities
40,000
47,600
Common Stock
70,000
70,000
Retained Earnings
10,000
17,400
Total Equity
80,000
87,400
Total Liabilities & Equity
120,000
135,000
Shares of Stock Outstanding 2,000 2,000
Market Price per Share Common Stock 7.00 8.00
Problem 4 Cash Flow Statement
Use the financial information from Ron & LeviAc€?cs Company to develop a cash flow statement for 2014.
Ron & LeviAc€?cs
Income Statement
For the Year Ending 12/31/2014
Sales Revenue
100,000
Less Cost of Goods Sold
-60,000
Equals Gross Margin
40,000
Operating Expenses
Selling and Administration
15,000
Depreciation
7,000
Total Operating Expense
-22,000
Operating Income
18,000
Tax
-7,200
Net Income
10,800
Ron & LeviAc€?cs
Statement of Retained Earnings
For the Year Ending 12/31/2014
Beginning Balance
10,000
Net Income
10,800
Less Dividends
-3,400
Ending Balance
17,400
Ron & LeviAc€?cs
Balance Sheet
12/31/2013 & 12/31/2014
Category
2013
2014
Cash
20,000
25,000
Accounts Receivable
15,000
12,000
Inventory
30,000
52,000
Total Current Assets
65,000
89,000
Equipment
70,000
65,000
Less Accumulated Depreciation
-15,000
-19,000
Equipment (Net)
55,000
46,000
Total Assets
120,000
135,000
Accounts Payable
15,000
29,000
Long-term Liabilities
25,000
18,600
Total Liabilities
40,000
47,600
Common Stock
70,000
70,000
Retained Earnings
10,000
17,400
Total Equity
80,000
87,400
Total Liabilities & Equity
120,000
135,000
Shares of Stock Outstanding 2,000 2,000
Market Price per Share Common Stock 7.00 8.00
Problem 4 Cash Flow Statement Use the financial information from Ron & LeviAc€?cs Company to develop a cash flow statement for 2014.