2.

7:

Liabilities
Long Term Debt

Shareholder Equity
Common Stock
Preferred Stock
Accumulated Retained Earnings
Capital Surplus
Tota Shareholders equity

Total Liabilities and Shareholders equity

Total Assets

2.11:A

Change in cash during 2015:

Cash flow from operating activities:

Cash flow from investing activities:

Cash flow from financia; activities:

2.11: B
Change in net working capital:
Particulars
Current Assets
Cash
Other Current Assets
Total Current Assets

Current Liabilities
Accounts payable

Total Current liabilities

Changes in net worth capital
Total

C
Cash Flow from assets:
Cash Flow from assets=Cash Flow from operating activities = $178

14
A
Calculation of operating cash flow:
EBIT = 235000 - 147000 - 7900
$80,100
Operating cash flow = EBIT + Depreciation - taxes
80415

B
Cash flow to creditors = Interest - New long term debt
13500- (-3500)= 17000

C
cash flow to stock holders
Dividends - net new equity = 10500 - 5000 = 5500

D
Cash flows from assets = 17000 + 5500 = 22500
Net capital spending = Increase in net assets + depreciation
20000 + 17500 = 37500
Change in net working capital = operating cash flow - net capital spending - cash fow from assets
80415 - 22500 - 37500 = 20415
 2.7:
Beginning of year Change During the yeCurrent Balance sheet

$55,000,000 $30,000,000 $85,000,000

$12,000,000 $5,000,000 $17,000,000

$3,100,000 $0 $3,100,000
$119,000,000 $6,200,000 $125,200,000
$56,000,000 $58,000,000 $114,000,000
$190,100,000 $69,200,000 $259,300,000

$245,100,000 $344,300,000

$245,100,000 $344,300,000

2.11:A

ash during 2015:

net profit $163

increase in current assets -$22
increase in accounts payable $27
$168

investment in fixed assets -$20

long debt $22

divedend paid -$143

net cash flow from all -$121

activities $27
opening cash balance $72

closing cash balance $99

2.11: B
ge in net working capital:
2015 2014 increase decrease
$72
$99 $182
$204 $254
$303
 $159 $132 $27

$159 $132
$76 $76
$462 $462 $76 $76

fow from assets