The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 46 Bank loans $ 46 Marketable securities 23 Accounts payable 140 Accounts receivable 123 Inventory 215 Total current assets $ 407 Total current liabilities $ 186 Fixed assets: Gross investment $ 263 Long-term debt 38 Less depreciation 83 Net worth (equity and retained earnings) 363 Net fixed assets $ 180 Total assets $ 587 Total liabilities and net worth $ 587 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 176.0 Debt due within a year (bank loans) $ 64.0 Marketable securities 0.0 Accounts payable 188.0 Accounts receivable 150.0 Inventory 261.0 Total current assets $ 587.0 Total current liabilities $ 252.0 Fixed assets: Gross investment $ 371.0 Long-term debt 86.0 Less depreciation 89.5 Net worth (equity and retained earnings) 530.5 Net fixed assets $ 281.5 Total assets $ 868.5 Total liabilities and owners’ equity $ 868.5 Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $ 1,500.0 Operating costs 1,408.5 $ 91.5 Depreciation 6.5 EBIT $ 85.0 Interest 5.0 Pretax income $ 80.0 Tax at 50% 40.0 Net income $ 40.0 Notes: Dividend = $30 million and reinvested earnings = $10 million. Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.) Dynamic Mattress(figures in $ millions)Sources of cash:Sold marketable securitiesIncreased bank loansIncreased accounts payableIncreased long-term debtNet incomeIssue of stockDepreciationTotal sourcesUses of cash:Increased inventoriesIncreased accounts receivableInvested in fixed assetsDividendTotal usesIncrease in cash balance

The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017. Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 46 Bank loans $ 46 Marketable securities 23 Accounts payable 140 Accounts receivable 123 Inventory 215 Total current assets $ 407 Total current liabilities $ 186 Fixed assets: Gross investment $ 263 Long-term debt 38 Less depreciation 83 Net worth (equity and retained earnings) 363 Net fixed assets $ 180 Total assets $ 587 Total liabilities and net worth $ 587 Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions) Assets Liabilities and Shareholders’ Equity Current Assets: Current Liabilities: Cash $ 176.0 Debt due within a year (bank loans) $ 64.0 Marketable securities 0.0 Accounts payable 188.0 Accounts receivable 150.0 Inventory 261.0 Total current assets $ 587.0 Total current liabilities $ 252.0 Fixed assets: Gross investment $ 371.0 Long-term debt 86.0 Less depreciation 89.5 Net worth (equity and retained earnings) 530.5 Net fixed assets $ 281.5 Total assets $ 868.5 Total liabilities and owners’ equity $ 868.5 Dynamic Mattress Income Statement for 2017 (figures in $ millions) Sales $ 1,500.0 Operating costs 1,408.5 $ 91.5 Depreciation 6.5 EBIT $ 85.0 Interest 5.0 Pretax income $ 80.0 Tax at 50% 40.0 Net income $ 40.0 Notes: Dividend = $30 million and reinvested earnings = $10 million. Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.) Dynamic Mattress(figures in $ millions)Sources of cash:Sold marketable securitiesIncreased bank loansIncreased accounts payableIncreased long-term debtNet incomeIssue of stockDepreciationTotal sourcesUses of cash:Increased inventoriesIncreased accounts receivableInvested in fixed assetsDividendTotal usesIncrease in cash balance

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.

Dynamic Mattress Year-End Balance Sheet for 2016 (figures in $ millions)
Assets			Liabilities and Shareholders’ Equity
Current Assets:			Current Liabilities:
Cash	$	46	Bank loans	$	46
Marketable securities		23	Accounts payable		140
Accounts receivable		123
Inventory		215
Total current assets	$	407	Total current liabilities	$	186

Fixed assets:
Gross investment	$	263	Long-term debt		38
Less depreciation		83	Net worth (equity and retained earnings)		363
Net fixed assets	$	180
Total assets	$	587	Total liabilities and net worth	$	587

Dynamic Mattress Year-End Balance Sheet for 2017 (figures in $ millions)
Assets			Liabilities and Shareholders’ Equity
Current Assets:			Current Liabilities:
Cash	$	176.0	Debt due within a year (bank loans)	$	64.0
Marketable securities		0.0	Accounts payable		188.0
Accounts receivable		150.0
Inventory		261.0
Total current assets	$	587.0	Total current liabilities	$	252.0

Fixed assets:
Gross investment	$	371.0	Long-term debt		86.0
Less depreciation		89.5	Net worth (equity and retained earnings)		530.5
Net fixed assets	$	281.5
Total assets	$	868.5	Total liabilities and owners’ equity	$	868.5

Dynamic Mattress Income Statement for 2017 (figures in $ millions)
Sales	$	1,500.0
Operating costs		1,408.5
	$	91.5
Depreciation		6.5
EBIT	$	85.0
Interest		5.0
Pretax income	$	80.0
Tax at 50%		40.0
Net income	$	40.0

Notes: Dividend = $30 million and reinvested earnings = $10 million.

Use the tables above to work out the statement of cash flows for 2017. (Enter your answers in millions of dollars rounded to 1 decimal place.)

Dynamic Mattress(figures in $ millions)Sources of cash:Sold marketable securitiesIncreased bank loansIncreased accounts payableIncreased long-term debtNet incomeIssue of stockDepreciationTotal sourcesUses of cash:Increased inventoriesIncreased accounts receivableInvested in fixed assetsDividendTotal usesIncrease in cash balance

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