There Are 76 Red Xxxs Each Worth 118 Points You Only Need To

There Are 76 Red Xxxs Each Worth 118 Points You Only Need To Fil There are 76 red xxx’s – each worth 1.18 points. You only need to fill in where you see red xxx’s (big or small) CHAPTER 1 THE McGEE CAKE COMPANY 1. The advantages to a LLC are: xxxx The biggest disadvantage is: xxxx 2. .xxxx C-2 CASE SOLUTIONS 3. .xxxx CHAPTER 2 CASH FLOWS AND FINANCIAL STATEMENTS Below are the financial statements that you are asked to prepare. 1. The income statement for each year will look like this: Income Statement Sales xxxx xxxx Cost of goods sold 163,886 Selling and administrative xxxx xxxx Depreciation 46,282 EBIT $79,110 $90,584 Interest 10,526 EBT $69,054 $79,058 Taxes (use the problem to figure This amount out xxxx xxxx Net income $55,243 $63,246 Dividends(read the case to find out how much this is) xxxx xxxx Addition to retained earnings (this would be whatever the net income is less the dividends paid out) xxxx xxxx 2. The balance sheet for each year will be: Balance Sheet as of Dec. 31, 2010 Cash xxxx Accounts payable xxxx Accounts receivable xxxx Notes payable xxxx Inventory xxxx Current liabilities $60,832 Current assets $72,651 Long-term debt xxxxx Net fixed assets xxxxxx Owners' equity xxxxx Total assets $276,719 Total liab. and equity $276,719 In the first year, equity is not given. Therefore, we must calculate equity as a plug variable. Since total liabilities and equity is equal to total assets, equity can be calculated as: Equity = $276,719 – 60,832 – 103,006 Equity = $112,881 Balance Sheet as of Dec. 31, 2011 Cash xxxx Accounts payable xxxx Accounts receivable xxxx Notes payable xxxx Inventory xxxx Current liabilities $68,121 Current assets $100,834 Long-term debt xxxx Net fixed assets xxxx Owners' equity Xxxx(see below) Total assets $349,459 Total liab. and equity $349,459 The owner’s equity for 2011 is the beginning of year owner’s equity, plus the addition to retained earnings, plus the new equity, so: Equity = $112,881 + 31,623 + 20,500 Equity = $165, are completed for you so you can answer the questions 3. Using the OCF equation: ( OCF = EBIT + Depreciation – Taxes The OCF for each year is: OCF2010 = $79,110 + 46,255 – 13,811 OCF2010 = $111,554 OCF2011 = $90,584 + 52,282 – 15,812 OCF2011 = $127,. To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was: Capital spending Ending net fixed assets $248,625 – Beginning net fixed assets 204,068 + Depreciation 52,282 Net capital spending $96,839 And the change in net working capital was: