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Calculate the number of shares outstanding for the company and the market price per share at the end of 2020. 2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied.

Calculate the number of shares outstanding for the company and the market price per share at the end of 2020. 2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Calculate the number of shares outstanding for the company and the market price per share at the end of 2020.
2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied.

GRIZZLY BEAR MUFFIN COMPANY Balance Sheet Income Statement ($M) Assets ($M) Liabilities & Shareholders' Equity ($M) 2019 2020 2019 2020 2020 Current Assets Cash Current Liabilities Accounts Payable Notes Payable Sales $84,409 5,290 5,822 6,120 7,098 Cost of goods sold 58,218 26,191 Accounts Receivable 3,656 6,517 2,738 3,168 2,700 Gross Profit Inventory Total Current Assets 5,586 13,614 Other Current Liabilities 4,088 Depreciation 7,410 3,055 15,995 Total Current Liabilities 12,343 13,886 EBIT 18,781 Interest Expense 3,281 |Long Term Debt 19,000 22,000 Taxable Income 15,500 Fixed Assets Taxes (35%) 5,425 $10,075 Shareholders' Equity Common Stock & paid-in-surplus Accumulated Retained Earnings Total Shareholders Equity Net Plant and Equipment 71,433 79,669 Net Income 9,000 9.000 Dividends 4,001 44,704 Retained Earnings 50,778 59,778 6,074 53,704 EPS 4.03 Total Assets $85,047 $95,664 Total Liabilities & Shareholders' Equity | $85,047 $95,664 PE Ratio 14.5
Transcribed Image Text:GRIZZLY BEAR MUFFIN COMPANY Balance Sheet Income Statement ($M) Assets ($M) Liabilities & Shareholders' Equity ($M) 2019 2020 2019 2020 2020 Current Assets Cash Current Liabilities Accounts Payable Notes Payable Sales $84,409 5,290 5,822 6,120 7,098 Cost of goods sold 58,218 26,191 Accounts Receivable 3,656 6,517 2,738 3,168 2,700 Gross Profit Inventory Total Current Assets 5,586 13,614 Other Current Liabilities 4,088 Depreciation 7,410 3,055 15,995 Total Current Liabilities 12,343 13,886 EBIT 18,781 Interest Expense 3,281 |Long Term Debt 19,000 22,000 Taxable Income 15,500 Fixed Assets Taxes (35%) 5,425 $10,075 Shareholders' Equity Common Stock & paid-in-surplus Accumulated Retained Earnings Total Shareholders Equity Net Plant and Equipment 71,433 79,669 Net Income 9,000 9.000 Dividends 4,001 44,704 Retained Earnings 50,778 59,778 6,074 53,704 EPS 4.03 Total Assets $85,047 $95,664 Total Liabilities & Shareholders' Equity | $85,047 $95,664 PE Ratio 14.5
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The financial statement indicates the stand of the entity in the competitive market with the help of determining financial position and performance during the year.

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Current Assets Cash Accounts Receivable Inventory Assets (SM) Total Current Assets Fixed Assets Net Plant and Equipment Total Assets 2019 2020 GRIZZLY BEAR MUFFIN COMPANY Balance Sheet 5,290 5,822 2,738 3,656 5,586 6,517 13,614 15,995 71,433 79,669 $85,047 $95,664 Liabilities & Shareholders' Equity (SM) 2019 Current Liabilities Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities 6,120 3.168 3,055 12,343 2020 7,098 2,700 4,088 13,886 Long Term Debt Shareholders' Equity Common Stock & paid-in-surplus Accumulated Retained Earnings Total Shareholders Equity Total Liabilities & Shareholders' Equity $85,047 $95,664 19,000 22,000 9,000 9,000 44,704 50,778 53,704 59,778 Income Statement (SM) Sales Cost of goods sold Gross Profit Depreciation EBIT Interest Expense Taxable Income Taxes (35%) Net Income EPS PE Ratio 2020 Dividends Retained Earnings $84,409 58,218 26,191 7,410 18,781 3,281 15,500 5,425 $10,075 4,001 6,074 4.03 14.5
Transcribed Image Text:Current Assets Cash Accounts Receivable Inventory Assets (SM) Total Current Assets Fixed Assets Net Plant and Equipment Total Assets 2019 2020 GRIZZLY BEAR MUFFIN COMPANY Balance Sheet 5,290 5,822 2,738 3,656 5,586 6,517 13,614 15,995 71,433 79,669 $85,047 $95,664 Liabilities & Shareholders' Equity (SM) 2019 Current Liabilities Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities 6,120 3.168 3,055 12,343 2020 7,098 2,700 4,088 13,886 Long Term Debt Shareholders' Equity Common Stock & paid-in-surplus Accumulated Retained Earnings Total Shareholders Equity Total Liabilities & Shareholders' Equity $85,047 $95,664 19,000 22,000 9,000 9,000 44,704 50,778 53,704 59,778 Income Statement (SM) Sales Cost of goods sold Gross Profit Depreciation EBIT Interest Expense Taxable Income Taxes (35%) Net Income EPS PE Ratio 2020 Dividends Retained Earnings $84,409 58,218 26,191 7,410 18,781 3,281 15,500 5,425 $10,075 4,001 6,074 4.03 14.5
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